Western companies need to act FRUGAL to successfully sell FRUGAL products in emerging markets. But they are lagging behind in seizing this growing opportunity. For them to catch up would require a complete overhaul of their ways of working; i.e. building a FRUGAL operating model that focuses on the core functionalities, integrating local needs and installing cost-effective production processes.
A recent survey we conducted with over 60 top managers reveals that FRUGAL products account on average for 12% of sales – a share that is expected to double in the next five years.