THE TRIAD MARKET

THE TRIAD MARKET.

From a global perspective, the United States, Canada, Japan, and Western Europe, often referred to as triad countries, constitute the major market.  Although elsewhere opportunities are emergin, in the foreseeable future these countries continue to be the leading markets.  They account for approximately 14 percent of the world´s population, but they represent over 70 percent of the world gross product.  As such, these countries absorb a major proportion of capital and consumer products  and, thus, are the most advanced consuming societies in the world.  Not only do must product innovations take place in these countries, but they also serve as the opinion leaders and mold the purchasing and consumption behavior of the remaining 84 percent of the world´s population.

For example, over 90 percent of the world´s computers are used by triad countries.  In the case of numerically controlled machine tools, almost 100 percent are distributed in the triad market.  The same pattern follows in consumer products.  The triad accounts for 92 percent of the demand for electronic consumer goods.  What these statistics point to is that a company that ignores the market potential of the triad does so at its own peril.

An Interesting characteristic of the triad market is the universalization of needs.  For example, not too long ago manufacturers of capital equipment produced machinery that reflected strong cultural distinctions.  West German machines reflected that nation´s penchant for craftsmanship; American equipment was often extravagant in its use of raw materials.  But these distinctions have disappeared.  The best-selling factory machines have lost the "art" element that once distinguished them and have become both in appearance and in the level of skill that they require much more similar.  The current revolution in production engineering has brought about ever-increasing global standards of performance.  In an era when productivity improvements can quickly determine life or death on a global scale, companies cannot affort to indulge in a metallic piece of art that will last 30 years.

At the same time, consumer markets have become fairly homogeneous.

Ernest Dichter,  "The World Customer",   Harvard Business Review.