Emerging consumers want and need it all. Some Latin American retailers have created innovative and attractive shopping experiences that successfully and profitably moved these consumers from resignation to access in both a functional and an emotional way. Different roads may be used to cater to these vast needs, as proves our study of several retailers using a holistic, industry-specific approach brings out.

In recent years, we have seen numerous attempts at product innovation for emerging consumers. Prominent companies such as Unilever, Tata, Procter & Gamble, and Avon, have introduced a variety of concepts - ranging from simple incremental innovations like a new packaging solution for shampoo to radically new platforms like the Nano car - in an effort to better serve this rising segment's needs. The primary focus has been on providing access to higher-quality, lower-cost products than those emerging consumers could traditionally afford.

Product innovation, however, is difficult for retailers to embark upon. Retailers typically have no say in the specifications, functionalities, or design of the majority of the products they sell. By definition, retailers provide shelf space to exhibit and promote the sale of other companies' products. Electronics retailers sell the same laptops built by Apple and HP. Pharmacies sell the same drugs manufactured by Pfizer or Merck. How should retailers innovate when some of the most visible attributes of their business are beyond their control?

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