This month's trend: "FUNCTIONAL"

Why simple, small & cheap appeals to all?!

Captures the phenomenon of simple, small and/or cheap products and services designed for low(er)-income consumers in emerging markets, with cross-over appeal to consumers in mature consumer societies.

FUNCTIONAL is not only about all consumers, it’s also about all brands. Count on brands from established consumer societies and brands from emerging nations to come up with numerous FUNCTIONAL innovations. From Tata to Nokia.


FOR EXAMPLE::

Footwear:

Adidas has announced plans to produce 1 euro trainers for millions of consumers who would otherwise be unable to afford shoes. Pilot production is planned to begin this year in Bangladesh, with the final design yet to be confirmed.
Gaming:

Zeebo is a low cost games console targeted at consumers in developing markets. Games are downloaded via a 3G wireless connection, and the console uses only 1 watt of power.

Automotive:

- The Logan range, a series of low-cost cars produced by Renault's Dacia subsidiary in Romania, has been outpacing overall car sales in key European markets by appealing to budget-conscious consumers.
- After the much-hyped introduction of the Tata Nano in India, Tata plans to offer the Nano Europa starting in 2011 and it's likely to cost around EUR8,000.
- Meanwhile, Renault-Nissan has claimed that its partnership with Bajaj Auto will result in the ULC model by 2012, at a cost that will be 'lower than any car today made in India' according to CEO Carlos Ghosn.
Real estate:

In April 2009, Tata Housing announced plans to build 1,300 small apartments outside Mumbai, selling them for as little as USD 7,800. The floor area of the miniature apartments will be between 218 and 373 square feet. When the scheme was opened to booking in Mumbai in May 2009, more than 7,000 customers queued to pay the initial booking fee.
Computing:

In December 2009, One Laptop per Child unveiled designs for the XO 3. The computer, which is basically a single sheet of flexible plastic, featuring touch screen technology, is due to be released in 2012. Costs should remain under USD 100, making it affordable for poor and rich consumers alike.

More examples can be found on the website from TRENDWATCHING .