Value Chain Glossary: Demand-driven Upgrading
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Demand-driven Upgrading
Improving a product or process according to preferences of consumers in end markets. Upgrading resulting from a surge demand of a particular product or service often requires investment in improved processes and/or products. Information about changes in demand is usually obtained by entities higher along the value chain, closer to end markets, e.g. retailers. Strong vertical linkages and effective information flows down the value chain enhance opportunities for producers to respond effectively and upgrade to meet changes in demand.
Two examples of demand-driven upgrading come from the UK and the Dominican Republic:
- Marks & Spencer is the first UK retailer to convert its entire range of small still wine bottles from glass to environmentally friendly plastic, meeting growing consumer demand for lighter and "unbreakable" containers.
- Dominican farmers have invested in obtaining rigid standards and certification requirements to supply explosive demand for organics in the US food markets and committed more than six percent of their land shares to organic farming.
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Related Articles
- Enhancing Dominican Participation in the US Organic Produce Market. Lofstrom, Michael; Silva, Miguel. June, 2007.
- Marks & Spencer's mini wine range goes a shade greener with plastic bottles. Rebecca Smithers, www.guardian.co.uk. May, 2010.
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