Providing high-tech solutions while maintaining low prices might be the best way to enter emerging markets for Nordic businesses.
Under the heading High-Tech Low Cost, a Nordic Innovation report outline status in 2016 for some of the most promising technologies for Nordic companies who wants to increase their presence in emerging markets. Nordic companies often produce high-value products with focus on design and technology. While often attractive and innovative, they are also expensive and address needs of the wealthy.
Traditionally, frugal products are associated with simple and low-tech solutions. Nordic companies, however, have the competences to provide high-tech solutions that address needs found in emerging markets.
Huge untapped potential in emerging economies
According to a previous Nordic Innovation report by Dalberg Research, there is a huge untapped potential for Nordic small companies in emerging markets. More than 300.000 jobs in the Nordic region can be linked to Nordic exports to these markets. While traditional and developed economies currently struggle, emerging markets are growing rapidly and are expected to account for two thirds of the global economy in 2030. They provide Nordic companies with good business opportunities, which in turn creates Nordic jobs and economic growth.
Although costs of entering emerging markets often are high, research done by the Confederation of Danish Industry on assignment from Nordic Innovation shows that the concept of frugal innovation might be one of the strategies Nordic companies can take to establish themselves in emerging markets.
Download the report
To download the report for free, please click here.