Anderson, Jamie / Billou, Niels / 2007. Serving the world's poor: innovation at the base of the economic pyramid.
Journal of Business Strategy, 28 (2): 14-21.

The market for products and services delivered to the poor people of the world is huge. Consumers at the very bottom of the economic pyramid – those with per capita incomes of less than $1,500 – number more than 4 billion. For more than a billion people – roughly one-sixth of the world’s population – per capita income is less than $1 per day. The 20 biggest emerging economies include more than 700 million such households, with a total annual income estimated at some $1.7 trillion, and this spending power is approximately equal to Germany’s annual gross domestic product (Prahalad and Hart, 2002). The spending power of Brazil’s poorest 25 million households amounts to $73 billion per annum, while China’s poor residents account for 286 million households with a combined annual income of $691 billion. India has 171 million low-income households with a combined $378 billion in income. But the success of multinational corporations in penetrating these low-income customers has been patchy at best, with most companies based in the developed world choosing to focus on the middle and upper income segments of the developing world.

> Download

Appeared in

Sector: Sanitation Phone
Region: South America East Asia, South Asia, Southeast Asia