Breakout Strategies for Emerging Markets: Business and Marketing Tactics for Achieving Growth

5. Upscaling the Offer

In most emerging markets, local, unbranded goods proliferate. Most tend to be highly regional and do not have a national presence. A study across eight emerging markets revealed that emerging market consumers tend to stay with their local brands, possibly due to inertia or because those items do not have any status appeal (Credit Suisse 2013). If companies incorporate psychological appeal (social and emotional) into products, then as consumers’ disposable income increases, they are more likely to explore “trading up” opportunities and move from unbranded to branded goods. This is not just applicable to lower-income consumers being introduced to brands but also to middle- or upper-income consumers who are moving to more ...