World's largest untapped consumer segment

This page in:

Bottom_billion_1_4 With a monthly income varing from $63 and $700, many of them use "branded shampoos and detergents regularly, and they sometimes indulge in a bar of chocolate or bottle of perfume.  A good number own televisions, refrigerators, and DVD players." 

Known as the "next billion," these consumers - who spend over $1 trillion a year - can't "afford to make mistakes" and will "carefully compare [products] functional, technical, and emotional benefits."

BCG has five tips for companies on how to reach this group:

Design and develop products with functions and prices that compensate for small living spaces, unreliable utilities, limited budgets and other constraints

  • Leverage "ubiquitous distributions" by partnering with existing networks, such as the postal service, to ensure broad coverage, low cost, and reasonable control
  • Design educational marketing programs that explain the importance of a product’s benefits and that foster new demand […]
  • Unleash the organization: establish clear accountability for serving the next b8illion, encourage growth over short-term profitability, foster innovation, and embed low-cost processes
  • Collaborate with companies from other industries (even with competitors, on occasion) to enhance consumer programs (such as easy financing) and improve scale economics (for example, by sharing distribution costs)

Join the Conversation

The content of this field is kept private and will not be shown publicly
Remaining characters: 1000