Tuesday, August 14, 2007

Fortune at the bottom of the pyramid

The world market presents lucrative and diverse opportunities for the MNCs to invest, especially in the lower income group. The world’s most exciting, fastest-growing market is where you would least expect it: at the bottom of the pyramid. Collectively, the world’s billions of poor people have immense entrepreneurial capabilities and buying power. Companies have a genuine opportunity to commit their energy and resources to help the disadvantaged of the world. This report proves the presence and reality of the fortune of the pyramid and provides impetus for further thought process.








Tier 1:
At the very top of the world economic pyramid are 75 to 100 million affluent Tier 1 consumers from around the world. This is a cosmopolitan group composed of middle- and upper-income people in developed countries and the few rich elites from the developing world.

Tier 2 and 3:
In the middle of the pyramid, is Tiers 2 and 3, are poor customers in developed nations and rising middle incomes in developing countries, the targets of MNCs' past emerging-market strategies.

Tier 4: Now consider the 4 billion people in Tier 4, at the bottom of the pyramid. Their annual per capita income based on purchasing power parity in U.S. dollars, is less than $1,500, the minimum considered necessary to sustain a decent life. For well over a billion people, the per capita income is less than $1 per day.

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