YakShaving

This is an interesting discussion between a Wharton marketing professor and the author of this book, Treasure Hunt : Inside the Mind of the New Consumer.

Its a good article, but I have one small bone to pick with the author. He criticizes Prahalad’s Fortune at the Bottom of the Pyramid from a purely economic bottom-line basis, without understanding that companies who invest in these emerging markets are focused not only on financial gains but also to improve the lives of those who live on less than a dollar a day. Moreover, extricating these populations from destitution creates wealth that can eventually lead to future growth for the company. I really feel we’re at a precipice. Once a few more companies start selling to BOP markets efficiently and “get it”, we’re going to see economies increase in scale faster than ever. Let’s hope American CEOs are willing to spend time in innovating for these markets, or I fear the US might lose its edge and first mover advantage.
Anyway, I realize that this is a small part of the author’s overall point, about the disappearing market for “middle, mediocre” goods. And his Costco anecdote makes perfect sense. This happens to me all the time, I end up buying random crap from Costco that I don’t need because I feel like I’m saving so much money. Doh!