Inclusion for Market Growth
Arun Maira (right), Chairman of The Boston Consulting Group in India, has written an excellent editorial in India’s prominent business daily, The Economic Times.
In his view, Inclusion is the mantra for growth in bottom of the pyramid markets.Maira writes:
Down-sizing products and services to make them affordable is one way to tap into this potential market. The other is to accelerate the growth of incomes of people below the required income line by providing them with opportunities to increase their incomes through employment or business entrepreneurship.
Maira goes on to point out that the organizations which will succeed in these markets will be those which don?t merely down-size existing products but invest in developing innovative business models.
He gives examples of Ford and Hindustan Lever which have accelerated the growth of incomes of potential consumers by providing them with opportunities to increase their incomes through employment or business entrepreneurship.
These successful models have three common threads: compassion, innovation, and partnerships.
Reports such as The Next 4 Billion [WRI – IFC] have helped draw attention to the $5 trillion BOP market. But the onus on businesses that seek to tap into these opportunities is to move beyond the math to understanding these markets and developing innovative models.
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