Four billion low-income consumers, a majority of the world’s population, constitute the base of the economic pyramid (BOP). New empirical measures of their aggregate purchasing power and their behavior as consumers suggest significant opportunities for market-based approaches to: better meet their needs, increase their productivity and incomes, and empower their entry into the formal economy.

Four billion low-income consumers, a majority of the world’s population, constitute the base of the economic pyramid (BOP).

New empirical measures of their aggregate purchasing power and their behavior as consumers suggest significant opportunities for market-based approaches to:

better meet their needs,

increase their productivity and incomes, and

empower their entry into the formal economy.

The Housing Market The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid http://www.wri.org/thenext4billion

Base of the Pyramid (BOP) spending on housing reflects consistently strong demand – people are willing to spend a fairly consistent share of their income on their home.

Informal home ownership poses a barrier to service delivery. Many governments require proof of title before a household can receive social benefits. And municipalities often are unwilling to connect undocumented homes to water, sewer, and electricity networks, since they have no legal recourse to collect unpaid fees from a home that – in the eyes of the government – does not exist.