Provenance Paradox and counter-strategies
What is Provenance Paradox?
Before going into the definition let us first break the question into two parts, i.e., "Provenance" and "Paradox".
Provenance means, "The place of Origin or earliest known history of something" and, "Paradox" is also known as an antinomy, is a logically self-contradictory statement or a statement that runs contrary to one's expectations.
Now coming to Provenance Paradox. It describes challenges faced by products and services manufactured by developing countries that have difficult time establishing a profit margin due to where they are from.
In 2010, Harvard Business Review Published an article by Rohit Deshpande, Sebastian S.Kresge Professor of Marketing at Harvard Business School. This phenomenon, called Provenance Paradox. It explains the challenges faced by firms from developing economies when competing with established firms from developed economies.
Reason: Consumers want authenticity, but they do not feel like paying a high price for a "third world" products. The origin of the product carries a stigma which places them at an inferior position. Certain countries produce better products that others (better than developed countries), despite the essence being that the products are of the same quality.
How to break the paradox?
Developing economy firms should position themselves in the segment they intend to grow. They should focus on their value proposition around key differentiators that the developed economy firms cannot easily replicate. The firms should focus on building strong associations in the customers and prospective minds.
Counter-Strategies:
- Stick to Colonial History
- Build a brand that focuses on future
- Never forget to flaunt the origin of the country - 100% authentic
- Create separate, local brand to avoid the market biases
- Invent new position in the category
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