The Means: National Differences, Scale, and Scope Economies
Figure 3-2 Category Specific Strategies to Help Companies Serve Middle-Class
Consumers in Emerging Economies
Middle-class consumers' needs
Shape or localize
Create a platform
ability to buy
Source: Extracted from David Court and Laxman Narasimhan, 2010. Capturing the world's emerging middle class.
McKinsey Quarterly, Issue 3, pp. 12–17.
require a different value proposition versus the business model that exists in advanced
markets.? About 40 percent of the average household income in China and India is spent
on food and transportation, whereas in the United States, this figure is 25 percent. For
companies operating in emerging economies, addressing such needs is not a matter of
transferring their existing business models and adjusting them with small tweaks. In-
stead, MNEs sometimes need to rethink their business models to solve problems such as
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