“Frugality is founded on the principle that all riches have limits.” – Edmund Burke
Frugal innovation is a process of discovering new business models, reconfiguring value chains, and redesigning products to serve users who face extreme affordability constraints in a scalable and sustainable manner.
It involves either overcoming or tapping into institutional voids and resource constraints to create more inclusive markets.
Frugal innovation first started in the 1980s when multinational companies like Unilever began selling single-use-sized toiletries in developing countries. The roots of the concept has gained popularity in the South Asian region, particularly in India.