The New “Low Cost”
- Nicolas Kachaner
- Aug 28
- 1 min read
Updated: Aug 29
Low-cost offerings are not new, but there is a new wave of low-cost business models. They are taking share from traditional players in many industry sectors and locations.
This new wave first appeared in rapidly developing economies (RDEs) where both local and multinational companies have had to design new models to serve a large segment of customers with limited financial means. These new models also have important strategic implications for the developed world. RDE-based market leaders are leveraging their
home-market success to pursue global ambitions. And multinationals are disrupting competitors and pioneering new price points and applications in the developed world with low-cost offerings created for RDEs.
Although some traditional firms are already riding this wave, too many are at risk of missing it.
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