Innovation in Emerging Market: Universal and Apsirational Brands

From the Economist's recent report on innovation in emerging markets here, the article "Easier said than done" showcases pyramid-straddling - the concept where a brand is able to win across all socio-economic market segments.

"... the masters of pyramid-straddling are mobile-handset makers. Nokia produces phones for every market, from rural models designed to cope with monsoons to fashion accessories that will look cool in a Shanghai nightclub. The cheap phones are sold through a vast network of local outlets, such as mom-and-pop stores and rural markets, and the upmarket models through shops in fashionable city centres. The aim is to create a brand that is at once universal and aspirational."

Consumer Electronics - Nokia Wins in China

From the China Daily article "Nokia signs $1.76b phones deal in China" here. Article states:

"Nokia has signed a 2009 framework deal worth $1.76 billion to supply handsets in China for top phone distributor China PTAC, with the annual contract's value falling from the year ago."

What is interesting to note is that China produces large quantities of off-brand, generic mobile phones that are sold across South and South East Asia, Middle East and Africa. Yet, the quality associated with a brand such as Nokia is winning with the consumer.