Publication: The Next 4 Billion : Characterizing BoP Markets
Date
2008-07
ISSN
Published
2008-07
Author(s)
Hammond, Allen L.
Kramer, William J.
Katz, Robert S.
Tran, Julia T.
Walker, Courtland
Abstract
This study uses empirical measures to
describe the behavior of low-income populations as consumers
and producers. In aggregate, their purchasing power suggests
significant market opportunities. By quantifying this market
and describing its characteristics, the author hopes to
stimulate business development and investment that can
better meet the needs of these populations, as well as
increase their productivity and incomes and empower their
entry into the formal economy. The four billion people at
the base of the economic pyramid Balance of Payment (BoP)
all those with incomes below $3,000 in local purchasing
power live in relative poverty. Their incomes in current
U.S. dollars are less than $3.35 a day in Brazil, $2.11 in
China, $1.89 in Ghana, and $1.56 in India. Yet together they
have substantial purchasing power: the BoP constitutes a $5
trillion global consumer market.
Citation
“Hammond, Allen L.; Kramer, William J.; Katz, Robert S.; Tran, Julia T.; Walker, Courtland. 2008. The Next 4 Billion : Characterizing BoP Markets. Africa Region Findings & Good Practice Infobriefs; No. 292. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/4c50a90c-c1ef-5235-a58d-72e9cf787986 License: CC BY 3.0 IGO.”