Despite the deluge of bad news about Latin America in the mainstream media, the bottom of pyramid (BOP) market in Latin America is still alive and kicking. There are plenty of opportunities for those companies that establish brand loyalty among consumers who are underserved.
Just to give some perspective:
- 70% of the Latin American population live on less than US$10 per day and the size of that market is estimated in US$750 billion
- The Bottom of the Pyramid (BOP) market has been growing at an average 2% anual rate since the year 2000
- 90% of BOP consumers them have a cellular phone
- By the year 2020, at least 6% of the BOP households will “graduate” into the middle class
- Around 27.5 percent of BOP spending in the region is on food; the rest is directed toward a variety of needs and desires that range from education to transportation
Companies can profit while making a difference in people’s lives by providing them with goods and services long unavailable to them and by enhacing their productivity. Furthermore, ‘leapfrogging’ opportunities for Latin America brought by the digital revolution and innovation are ripe, given the huge penetration of mobile vs fixed broadband.
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