Localisation as a product strategy for transition economies in Asia: cases from China and India

Abstract

The International Finance Corporation (IFC) coined the phrases “emerging markets” and “transition economies” in the early 1980’s. IFC used economic indicators like per capita income and the ratio of market capitalization to the GNP and based on these, it developed certain benchmarks to classify the transition economies. This paper specifies the common attributes of the transition economies and details the emerging opportunities and challenges in the transition economies. This paper also examines how products are localised as a competitive strategy, keeping in mind the unique characteristics and trends that are common to transition economies. Two short cases from China and India are presented to develop an argument for the product strategy that needs to be employed to succeed in the transition economies.