Capturing Indian Rural Market Through a Proactive Tool: Reverse Innovation

Abstract

Reverse innovation defines to the case where an innovation is acquired first in emerging economies before tricking up to rich nations. The reverse innovation concept that is spreading from developing to developed economies has been introduced by Immelt et al. (Harv Bus Rev 87:56–65, 2009) presently. Given its originality the reverse innovation concept still required to be combined with literature on features, diffusion, and the locus of innovation. Although example of reverse innovation are rare as it is still developing theoretical questions such as what types of innovations are probably spawn by the developing economies, why such innovations might spread to rich nations, what are the competitive benefits obtained by foreign and local companies to have fun in this process and how it influences the worldwide strategy and organization of multinational enterprises. Reverse innovation highlights in rich nations and sells their products in poor nations. Reverse innovation is performing the opposite. Reverse innovation also highlights the importance for reduced price point innovations emerging in developing globe to produce new market request back in richer economies. Reverse innovations also have global influence. Mainly, they have the importance to migrate from poor nations to rich ones. Reverse innovation needs a varied mindset flow of work and altogether paces for economically and socially consistent outcomes to develop. Reverse innovation fights to provide a powerful message because the data it provides is proper but not varied or new. Reverse innovation has two fundamental objectives: first is to support the organizations to grasp the theory underlying the process of reverse innovation and second is to offer them with practical guidance on how to perform the initiatives of reverse innovation. This study discusses in detail about the concept of reverse innovation, investigates its application in various industries in real time (Godrej, Tata Motors, and Philips), and explores how it can extend and enrich the mainstream theories of innovation. If understood and applied in a right way, reverse innovation strategy can play a significant role in today’s recovering markets. This is one area which is still unexplored. When world over is recovering, it is important to know that there lies a vast opportunity in exploring this new area in rural India. Reverse innovation can help us understand and tap rural market in India in a better way. This paper is an attempt to highlight some of the major benefits of adopting this marketing strategy and what should be future approach for this type of marketing strategy.