Are needs of emerging markets truly different from developed markets? This discusses the uniqueness of emerging markets with case studies

1. Business Transformation Globalization through Are needs of emerging markets truly different from developed markets? VamseeTirukkala Co-Founder & Managing Principal Zinnov Disclaimer: This presentation is solely for the use of Conference attendees, Zinnov Clients and Zinnov personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the organization without prior written approval from Zinnov

2. 2 Emerging markets of Brazil, India, China and Russia represent 42% of the world’s population and economies are growing faster Real GDP Growth in 2009 Consumer Expenditure (US $ Trillion) Debt to GDP Ratio of Economies in 2009 Disposable income in emerging markets is fast catching up with developed economies and this has resulted in increased consumer spending Source: Zinnov analysis of reports from World Development Indicators Database, World Bank, CIA

4. Cost Optimization

5. Total Customer Experience

6. Energy security for next 5 decades

7. Basic Infrastructure for Economic Growth

9. Quality & Affordable Healthcare

11. The sheer size of the nations and unique price performance expectations makes scale a key attribute in these markets.

12. Most emerging markets lack basic infrastructure like power, road infrastructure, bandwidth etc

13. The price performance expectation of these markets are dramatically different. For $6 you can buy a coffee in the US or pay for one months education of a child in India

16. Amit Zavery, VP of product management, Oracle Server Technologies Division

17. Christian J. van den Branden, Director Strategic Planning, EMC

18. David J. Cope , President & CEO, Purfresh

21. Employment opportunity of the local youth who keeps USD 15 of the USD 22 and is paid USD 1 for each story earning USD 66 to 132 per month

22. Revenue is generated from ads and promotions

23. On-time and critical information doesn't reaches the villagers and rural inhabits

25. Local youths pay USD 22 to get ‘franchise’ rights to be the local reporter for a village

26. He compiles the basic information of villagers like names, mobile numbers, etc and signs them up as subscribers

27. This is passed on to Ravi Ghate who sends messages to these subscribers about basic community information The Innovator Ravi Ghate Director Product Usage Qualification : 12th Pass, IInd year Diploma Failed. Innovator of the idea of Local SMS Community Newsletter Similar models are being built in parts of Africa , where mobile ubiquity can play a vital role in developing communication

29. Uses high-end insulation to stay cool for hours without power and consumes half the energy used by regular refrigerators

31. Entry level refrigerators in India are priced at USD 156, way above the budget of tier II, III and IV customers

32. The needs and requirements of rural consumers was a portable refrigerator

33. To be launched in 2011, touted as world’s cheapest refrigerator at USD 69 by Godrej and Boyce

34. Co-designed with village women to assure its acceptability, and distributed by members of a micro-finance group

36. Unique water handling system which allows us to use the rig without having any water connection

37. Drying facility in-built which gives 100% drying

38. Non-availability of affordable laundry service for working professionals in urban cities

39. Dependence on expensive laundry services or laundrymen who are notorious for using low-quality detergents and un-clean water

41. Deliver clean ironed clothes with-in 24 hours. Alert the customer through SMS when clothes are ready

43. Has resulted in 14 patents being filed by Tata

44. Competitors - HUL's Pureit and Eureka Forbes' Aquasure, cost

46. Non-availability of resources like uninterrupted electricity and running water hurdle in working of conventional water purifiers

47. In India, water-borne diseases* cause more than 1.5 times the deaths caused by AIDS and double the deaths caused by road accidents

48. Two variants priced at USD 17 and USD 22 launched in December 2009

49. Delivers safe drinking water at market price of Rs. 30, less than a dollar, per month for a family of five

50. Lifespan of 3,000 liters, enough to provide drinking water to a family of five for a year

51. Uses paddy hush ash (India produces 20 million tonnes a year) matrix bound with microscopic silver particlesNote * Water-borne disease include diarrhea, jaundice, typhoid, cholera, polio, and gastroenteritis.

53. In India Government alone is not able to sustain the health needs of an ever increasing population

54. Founded in 1976, it conducts two-thirds of its surgeries free of cost, and continues to be a profitable entity

55. Have conducted 2 million surgeries, with 2.7 million patients screened per year for the surgeries in ‘eye camps’

56. Aravind does2,400 surgeries per doctor per year compared to 300 in standard Indian clinics

60. Average number of deliveries per month is equivalent to 100-110 in comparison to 15-20 in Private clinics

61. No-Frills Delivery Model. Standardized Procedures, No Canteen, Low attrition, High Volumes

62. LifeSpring charges only USD 35 for a normal delivery compared to a average prevailing market price of USD 120

63. Standard quality protocols have been developed for provision of healthcare servicesCost of Doctor/Patient LifeSpring Asset Utilization is more than 5 times that of comparable private clinics

64. 14 About Zinnov Zinnov helps organizations globalize their business and improve people strategy. Our consulting solutions are based on rigorous research techniques, data analytics and communities Zinnov Research: http://www.zinnov.com/white_papers.php Zinnov Blog: http://zinnov.com/blog/ Zinnov Services: http://zinnov.com/services.html Zinnov Events: http://www.zinnov.com/zn_events.php @zinnov For additional details on the topic, contact info@zinnov.com

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