> Posted by Center Staff
How has Latin America and the Caribbean’s (LAC) market at the base of the pyramid (BoP) changed during recent years? Tuesday, the Inter-American Development Bank (IDB) released a new report exploring this question. Among the findings, the research revealed that the BoP market (those living on less than $10 per day) has grown 22 percent in a decade, going from $623 billion in 2000 to $759 billion in 2010. This increase wasn’t the result of demographic changes, but of economic growth. The per capita income among the BoP in the region increased at 2 percent annually across the decade, while that of the overall population remained relatively constant. What does this mean? A lot of things, including that there is a growing opportunity for companies to offer products and services to this population segment that have long been unavailable to them.
The report presents information on the size of the BoP market, its social-economic characteristics, market segments, consumer preferences, spending patterns, and demand-related factors. The report also looks at the supply side of the BoP market and analyzes the types of business models, distribution channels, and input sources that have successfully engaged this population segment.
Here are some of the report’s main findings: Read the rest of this entry »