Already 4 billion people live in low-income markets and that figure is forecast to rise. They are at the Base of the Pyramid, a population of consumers increasingly urban, connected, educated, and with disposable income for discretional expenses. Together they have substantial purchasing power: the BoP constitutes a $5 trillion global consumer market.
According to the latest UN projections, the number of people on the planet will rise from 7.3 billion today to 9.7 billion in 2050. A relevant concentration or population growth will take place in the developing world.
World population growth presents several challenges regarding poverty, inequality, hunger, malnutrition, and guaranteeing basic rights as access to education and healthcare.
These communities’ demands of better lives can be intertwined with business objectives of growth.
Inclusive distribution focuses on using ‘the power of downstream’ to advance development goals and sustainable livelihoods in BoP communities. It enables successful microenterprises in distribution chains while advancing strategic market development goals.
An inclusive business model is one that, being commercially viable and replicable, includes low-income or vulnerable population in the central supply, distribution, sale, or consumption operations.
CAD collaborates with FOMIN, IDB, Observatorio SCALA and other partners as a member of the Bop Global Network, creating opportunities for matching the demands of the BoP consumers and the business community.
Photo by Lisheng Chang on Unsplash