Four billion people who live in relative poverty have purchasing power representing a $5 trillion market, according to a report by the IFC, the private sector arm of the World Bank Group, and World Resources Institute (WRI).
The report is the first to measure the size of markets at the base of the economic pyramid using income and expenditure data from household surveys. The analysis is complemented by an overview of business strategies from successful enterprises operating in these markets.
Accurate data on market potential provides a foundation for private sector engagement that can drive down what the report calls the “BOP penalty,” where poorer people often encounter goods and services that are more expensive, of low quality, or difficult or impossible to access. The report seeks to help businesses think more creatively about new business models that meet the needs of these underserved markets.
The report characterizes the base of the pyramid markets by region, country, and sector. Sector markets for 4 billion consumers range from those that are relatively small, such as water ($20 billion) and information and communication technologies ($51 billion), to medium-scale markets such as health ($158 billion), transportation ($179 billion), housing ($332 billion), and energy ($433 billion), to truly large markets, such as food ($2,895 billion).
SCiNet Corporation is installing new assembly workshops in different regions worldwide, which are included within the ‘Pyramid base’, for the mass production of its innovative production mini-plants inside mobile containers. The mobile production mini-plants that are mounted in these assembly workshops are intended for developing countries, offering therein all kinds of products and basic services: from food preparation or household goods, footwear or clothing articles to water purification and primary health care.
For downloading: ´The next four Billion”.
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