The Next 4 Billion
By A. Hammond, W. Kramer, Robert S. Katz, Julia T. Tran, Courtland Walker. Innovations: Technology, Governance, Globalization, 2007
232 citations recorded by the source corpus.
This study uses empirical measures to describe the behavior of low-income populations as consumers and producers. In aggregate, their purchasing power suggests significant market opportunities. By quantifying this market and describing its characteristics, the author hopes to stimulate business development and investment that can better meet the needs of these populations, as well as increase their productivity and incomes and empower their entry into the formal economy. The four billion people at the base of the economic pyramid Balance of Payment (BoP) all those with incomes below $3,000 in local purchasing power live in relative poverty. Their incomes in current U.S. dollars are less than $3.35 a day in Brazil, $2.11 in China, $1.89 in Ghana, and $1.56 in India. Yet together they have substantial purchasing power: the BoP constitutes a $5 trillion global consumer market.
Subfields: Education, General Health Professions, Political Science and International Relations
View Paper: https://www.semanticscholar.org/paper/434358427b0097f3c6feedcf0d71dde3984ca5de
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Citations in the corpus
- The quest for the fortune at the bottom of the pyramid: potential and challenges (2008, background): “This is consistent with Hammond et al. (2007), who describe people at the BOP as”
- Business Model Innovation and Sources of Value Creation in Low-Income Markets (2010, unknown): “We consider the BOP as the socioeconomic demographic segment that live with less than 8 dollars a day – in purchasing power parity (Hammond et al., 2007).”
- Innovation for Inclusive Business: Intrapreneurial Bricolage in Multinational Corporations (2012, background): “The eventual business model should (1) be targeted at markets with less than 5 € per day income (purchasing power parity adjusted) (Hammond et al. 2007); (2) be initiated by an MNC; (3) offer the potential for a real-time study of the innovation processes, and (4) come from an industry relevant to…”
- Sourcing for the base of the pyramid: Constructing supply chains to address voids in subsistence markets (2015, unknown): “These markets include an estimated 2.7–4 billion people (Karnani, 2007b; Prahalad, 2005), with average daily incomes of $2 or less (Prahalad and Hart, 1999; Viswanathan et al., 2010b; Weidner et al., 2010), and a combined purchasing power of approximately $5 trillion (Hammond et al., 2007).”