Bottom of Pyramid Market in Philippines Worth $33.4 billion — ADB
Thursday, October 10, 2013
MANILA, Philippines – The Philippine private sector must consider a $33.4 billion-worth market not yet fully tapped in order to further inclusive growth in the country, the Asian Development Bank pointed out in a study.
According to the ADB Inclusive Business Market in the Philippines report, the development of inclusive businesses (IBs) — enterprises still in growth phase that offer jobs and affordable services to the poor and low income segments — can drive the country to achieve inclusive growth.
In a presentation on September 16, AsianSocial Enterprises Incubator (ASEI) Director Markus Dietrich said “majority of the Philippine population belong to the base of the pyramid. It is not the poorest of the poor only but it goes up to P18,000, that’s lower middle class in the Philippines which in this context of base of the pyramid (BoP) is considered part of this market.”
“[Around] 50% of the total expenditure of the Philippines is happening in this space. Money is being spent [here]. Small amounts of money but by a huge population so this adds up to billions of dollars,” Dietrich added.
BoP consists of those with monthly income of below P18,000 for a family of 5 or below $3 per day, based on purchase parity terms. Purchase parity, according to the United Nations, is the number of units of a currency used in the domestic market to buy the same amount of goods and services that $1 could buy in the United States.