A New Idea of Product Innovation in Emerging Market: Serving the Bottom of the Economic Pyramid

In emerging markets, most enterprises' product innovations are only aimed at satisfying the people's needs who are in the middle and the upper of the pyramid, while those for who are at the bottom of the pyramid (BOP) are often neglected. Through the analysis of BOP consumers with huge potential purchasing powers, this paper argues that enterprises' product innovations should be based on their needs and wants. In this process, due to their special requirements on price, channel, advertising and products, enterprises will face more challenges, among which the innovative aspect of the product itself can be regarded as the main challenge. Analyzing the characteristics of BOP consumers, this paper presents the SMART model as a new product innovation model to serve the bottom of the pyramid.