“The Fortune at the Base of Pyramid: 4 Billion New Customers Blue Ocean BOP Marketplace”
Approximately 100 million affluent consumers enjoy an annual per capita income in excess of $20,000, at the apex of the world economic pyramid. These people are mainly middle- and upper-income people in developed countries and rich elites in developing countries. At the bottom of that pyramid, approximately four billion people, the poor in developing countries, survive on less than $1,500 per year. This vast income gap is widening, not narrowing. In 1960, the world’s richest 20 percent accounted for about 70 percent of total income, and the poorest for only 2.3 percent. By 2000, the share of the rich rose to 85 percent, and that of the poor fell to 1.1 percent.
There is a common view that due to such large differences in the purchasing power of these two groups, the bottom of the pyramid (BoP) is not a viable market for global firms. However, contrarian views and experience of some multi-nationals demonstrate that in reality, the bottom of the pyramid represents a multitrillion-dollar market owning to its sheer size.
The people at the BoP need to buy everything from clean drinking water to solar energy, motorcycles, food, toilets, housing, healthcare, mobile phones, banking etc. In short, the demand is massive and all enterprises should start learning how to serve these 4 billion new customers.
Companies that want to tap into this market segment must strike a balance between profit-creation and value-creation for BoP consumers i.e. they need to be viewed as market with specific needs of their own. Rather, their business strategy must be geared towers the development of products and services that address the fundamental problems of poverty and sustainable development. BoP communities ought to be regarded as business partners, not just passive consumers.
Join us for our upcoming Networking Event to learn of the market opportunities that lie at the bottom of the pyramids, how companies can engage in BoP communities and the role of different stakeholders including NGOs in bringing about sustainable development for all.
Guest Speaker, Mr Jack Sim will be on site to engage the audience on:
- What are the kind of opportunities that businesses can tap on in the BoP market segment in Asia (with tangible examples)?
- What is the most effective way to engage with thee communities so as to best understand their needs?
- How does one get started in a business that targets the BoP? What is the kind of support available for such businesses?
- Apart from commercial aspects, why must businesses in Singapore be concered about BoP communities especially given that the Singapore society is reasonably well developed?
AVPN Members are entitled to a complimentary rate ticket! To avail:
- Click here to register. Then click Tickets.
- Enter this promo code: AVPNBOPNET28
- Select number of ticket(s) under “Non Members“.