Where’s the Upside at the Base of the Pyramid?
For a company to do business at the base of the pyramid, it must see financial upside. For the past several years, that upside has been conceived as a “fortune” to be tapped largely by selling goods to poor customers.
Indeed, many companies believe that growth will come from this market. However, many have struggled to find the right products, prices, and distribution routes through which to make this fortune materialize. With the exception of a tenacious few, most companies have not been able to make low-income markets work.
Often, due to a one-dimensional or short-sighted approach, they have not been able to scale their projects and attain profitability. While these companies may be tempted to seek easier profits, they would be remiss to walk away just as we are refining our understanding of this demographic.
Read the rest of this post in the Wall Street Journal.
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