Frugal Innovation Concept

Frugal innovation focuses on a specific price-sensitive customer group, reduce complexity and restrict the features of the solution to its core needs to produce fit-for-purpose/quality solutions at an affordable price.

SMART

Drivers for Frugal Innovation

Emerging Countries

  • bullet High growth of middle class
  • bullet Increasing demand for affordable quality solutions
  • bullet Market opportunity – smaller margin but profitable due to economies of scale
  • bullet Specific requirements with respect to functionalities unmet by existing alternative solutions

Developing Countries

  • bullet Saturated market with low growth rate potential for high-end technology/devices
  • bullet Demand for products with high user-friendliness in marginalized groups
  • bullet Increasing awareness about the need to conserve natural resources
approaches
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