The Next 4 Billion : Characterizing BoP Markets

The Next 4 Billion : Characterizing BoP Markets

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 characte...

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Bibliographic Details
Main Authors: Hammond, Allen L., Kramer, William J., Katz, Robert S., Tran, Julia T., Walker, Courtland
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ACCESS TO MARKETS
ACCESS TO SERVICES
BANK ACCOUNT
BUSINESS DEVELOPMENT
BUSINESS OPPORTUNITIES
CONSUMER
CONSUMER MARKET
CONSUMERS
DEVELOPING COUNTRIES
DWELLING
EXPENDITURE
EXPENDITURES
FARMERS
FINANCIAL SERVICES
GLOBAL MARKET
HOUSEHOLD INCOME
HOUSEHOLD SPENDING
HOUSEHOLD SURVEYS
HOUSEHOLDS
HOUSING
INCOME DISTRIBUTION
INCOME LEVEL
INCOMES
INFORMAL SETTLEMENTS
INTEREST RATES
INTERNATIONAL FINANCE
LOCAL MONEYLENDERS
LOW INCOME
LOW-INCOME
LOWER INCOME
MARKET ANALYSIS
MARKET DATA
MARKET ECONOMY
MARKET INFORMATION
MARKET SIZE
MIDDLEMEN
MONOPOLISTIC MARKETS
POOR
POVERTY LINE
POVERTY REDUCTION
PRODUCTIVITY
PURCHASING
PURCHASING POWER
RAPID GROWTH
RURAL
RURAL AREAS
SANITATION
SMALL BUSINESSES
SOURCES OF INCOME
SURPLUS
TELECOMMUNICATIONS
URBAN AREAS
Online Access:http://documents.worldbank.org/curated/en/2008/07/9753789/next-4-billion-characterizing-bop-markets
http://hdl.handle.net/10986/9508
Description
Summary: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.

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