Nirmalya Kumar and Jan-Benedict EM Steenkamp
London Business School and Kenan-Flagler Business School
Brands from emerging markets can 'breakout' to challenge the more well-established Western brands in the global marketplace if they ditch the low-cost products for routes to innovation and marketing excellence.
It is a widely held belief that emerging companies will not be a threat to existing global – largely western – powerhouses. However, we question this conventional wisdom. The top leadership of corporations in the West grew up in a world in which their competitors were all very well-known and, because of that, many CEOs, marketing practitioners, and even business school students believe that a poor perception of products from these countries, combined with a lack of marketing experience, will doom such brands from becoming global players.