Opportunities at the “bottom of the Pyramid”
OPPORTUNITIES AT THE “BOTTOM OF THE PYRAMID”
In economics, the “Bottom of the Pyramid” refers to the largest, poorest socio-economic group and do not have access to the benefits of modern, organised and efficient industrial systems. In global terms, this is the 4 billion people who live on less than US$2 per day. The “Bottom of the Pyramid” phrase is used in particular by people developing new models of doing business that deliberately target that demographic, often using new technology.
Globalisation can benefit all. From micro consumers to micro producers and from the rich to the poor. The fundamental principle is rights for everyone to have access benefits for global economy and affordable world class products and services. With rapid economic development, income inequality can be improved further and eventually more people will be out of poverty.
The worlds most exciting, fastest-growing new market is at the “Bottom of the Pyramid” and involvement of the private sector is an integral part of the poverty alleviation process. Collectively, the worlds billions of poor people have immense untapped buying power. They represent enormous opportunities and benefits for multi-national companies who choose to serve these markets in ways responsive to their needs since the poor of today will eventually become the middle-class of tomorrow. It can be done very profitably besides helping billions of the worlds poorest people to escape poverty.
It is totally wrong to ignore “Bottom of the Pyramid” markets. Multinational companies not only can make money selling to the worlds poorest, but also that undertaking such efforts is necessary as a way to close the growing gap between rich and poor countries. Thus, building innovative and profitable business models for “Bottom of the Pyramid” markets that work for everyone is essential