The Vast Market Potential Of The Earth’s Poorest 4 Billion Citizens
I feel a little on the guilty side today because I actually didn’t go into to work because I felt I needed to get some work done on my business plan. Why I feel guilty I don’t know. I feel that the direction I’m ultimately going to be moving is in line with my life’s purpose. That’s something I feel quite strongly about at a heart level.
So, even though I wasn’t able to cross paths with Andrew Keen today, I was able to go through an entire market report released this year by the World Resources Institute entitled, “The Next Four Billion: Market Size And Business Strategy At The Base Of The Pyramid“. Apparently this is the first market report that has actually been able to quantify the market size at the “bottom of the pyramid” sector by sector. The authors also broke down the bottom of the pyramid into 6 separate segments split into $500 increments from $0-$3000 to really give the reader a specific look at each specific chunk of the overall market.
Now, for a quick background, the “bottom of the pyramid” is a concept that was originally introduced in a groundbreaking work by C.K. Prahalad and Stuart L. Hart. It consists of the 4 billion citizens of this world that earn less than $3000 annually in international dollars. Converted to American dollars, it would be substantially less. The incredible statistic to take away from the report however is those 4 billion consumers contribute to a $5 trillion BoP market. That is absolutely huge, not to mention absolutely underserved and full of potential opportunities for private sector businesses willing to risk a virtually virgin market environment. One filled with all kinds of social and political strife a great deal of the time! It’s a bit of a read, but the report can be downloaded off the Nextbillion.net website for no cost via the italicized link at the top and contains never before seen financial statistics for the developing countries of the world containing BoP markets. It is sure to be a helpful tool in my planning process when calculating financial projections!