I want to sell to the poor people of the world

Recent years have seen more and more companies opening their eyes to the world's poor as a market.

Poor people make up the bulk of the world's population and are sometimes referred to as the 'Base of the Pyramid' or BoP.

Individually, the world's poor do not have much money, but there are so many of them that the earnings potential is huge.

Cheap prepaid phone cards
In many parts of Africa, mobile phones have helped poor people to live better lives. They can send money home to their village using their mobile phone, check the prices of vegetables in different markets, or apply for jobs in other parts of the country.
 
The poor can often afford only the very cheapest mobile phones – and frequently share one with others. The prepaid phone cards they buy may cost just a few cents, but mobile phone operators in Africa are still making money because the sales volumes are simply so high.

Philips is doing it
Dutch electronics group Philips understands this. It has developed low-energy lamps which are sold to poor people in far-flung parts of India.

These people were not previously among Philips' customers, partly because they live in isolated areas and have only limited purchasing power. But by using people from the local area as salespeople, Philips has managed to create a new market – and give these people cheap lighting.

Lamps sold with an explanation
If you are interested in selling to low-income markets, it is a good idea to involve this specific user group in the idea development phase.

There may be some very specific factors that you need to take into account. Philips, for example, had to train its salespeople in explaining why their lamps are cheaper in the longer term even though the actual purchase price is slightly higher than for less energy-efficient lamps.

You cannot assume that this kind of calculation will be second nature in a user group that may be used to living hand to mouth and rarely have any money in their pockets.