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Data insights into
the BOP market
size
Webinar
June 24, 2014
4:00 to 5:00 p.m. Geneva time
Welcome to this webinar
• WBCSD focus: scale up action, develop skills, gain greater insights,
and overcome both internal & external barriers to scaling up inclusive
business ventures in emerging markets around the world
• One of the key barriers: data to inform business strategy is often
difficult to find – key input for early-stage research and analysis of
opportunities
• Today’s webinar: share key takeaways about the Global
Consumption Database, a freely available resource recently launched
by IFC, a member of the World Bank Group
• Valuable market data platform providing insights on consumer
spending patterns in developing countries – How much do
households living at the BOP spend on food? water? energy?
housing? etc.
1. Introduce the Global Consumption
Database & how to use it
2. Open up for questions, comments,
feedback
3. Wrap-up
What are we going to do during this hour?
WBCSD
 Filippo Veglio
Director, Social Impact
IFC Inclusive Business Model Group
 Eriko Ishikawa
Global Program Manager
 Sabine Hertveldt
Senior Operations Officer
 Kathy Gaertner
Associate Operations Officer
Who is on the line?
Introducing the
Global Consumption Database
Inclusive Business Models Group
Agenda
Introducing the Global Consumption Database 6
 Challenges with market data
 What is the Global Consumption Database?
 Key data points
 Next steps
 Exploring the database
Barriers include:
Businesses face challenges obtaining data on
emerging markets consumers
Introducing the Global Consumption Database 7
 A lack of market data for many emerging markets and for
lower consumption segments
 Customized market research often costly for
exploratory phase
 Existing data often too high level and not available for
custom analysis
Global Consumption Database:
Database offers comprehensive dataset on
consumer spending in emerging markets
Introducing the Global Consumption Database 8
 Online tool designed for wide variety of potential users,
especially for those formulating business strategies
 Includes spending data for all consumption segments,
from lowest to higher
 Data freely available for download and custom
analysis, including product/service level data
Country 92 emerging markets
Database enables companies to do detailed
market analysis on a variety of levels
Introducing the Global Consumption Database 9
Location
Consumption
segment
Sector
Category
Specific products
& services
Rural and urban areas
Lowest, low, middle, higher segments
Food & beverage, housing, clothing & footwear, energy, transport,
health, ICT, education, personal care, water utility, financial services
15 sub-sector level categories: including dairy, grains, meat and fish,
and fruits and vegetables within the food and beverage sector
107 detailed sub-category items: including fresh milk, preserved milk,
eggs, butter, and cheese within the dairy category
Helps companies expand to new markets, new
consumer segments
Introducing the Global Consumption Database 10
“…We have a new, up-to-date, and authoritative source of intelligence about the size
of the current BoP market, how the majority of humanity prioritizes spending, and
where companies might effectively focus their attention in exploring new business
opportunities among the world's underserved… [the] new data base will soon become
an indispensable tool for any entrepreneur or company serious about inclusive
business.”
~ Stu Hart, S. C. Johnson Chair Emeritus in Sustainable Global Enterprise, Cornell
University and co-author (with C.K. Prahalad) of "The Fortune at the Bottom of the Pyramid."
 Lowers upfront cost to explore business opportunities
 Size up existing demand and willingness to pay in particular product
and service categories
 Identify sectors and categories where demand may be latent
 Clarify needs for where more in-depth market research is needed to
evaluate specific opportunities
Introducing the Global Consumption Database 11
* In 2005 purchasing power parity terms
The base of the pyramid (BOP) is a large
global market
Base
of the
Pyramid
Lowest
Consumption
Segment
Low
Consumption
Segment
 4.5 billion people
 Already $5 trillion* market
Introducing the Global Consumption Database 12
* Figures in 2005 purchasing power parity terms
Points of Note:
• Food & beverage spending share
decreases as total spending rises
• Transportation’s spending share
increases the most of any sector as
spending rises
• BOP spends more in aggregate than
the higher consumption segments
combined in food and beverages,
energy
Majority of BOP spending goes to food &
beverages
$77B
The “BOP” itself is a very diverse group
Introducing the Global Consumption Database 13
* In 2005 purchasing power parity terms
Spending: “BOP” encompasses 3 billion people spending less
than $3/day* and 1.5 billion people who spend up to
3x that amount
Location: 1.7 billion in urban environments 2.8
billion in rural areas
Age: 44% under age 20; 61% under age 30
Illustrative data points:
Requires different types of products, distribution
channels, pricing and payment options
Next Steps for the database
Introducing the Global Consumption Database 14
 Add new survey data, as available
 Possibly add staff projections for market size in
2020
 Refine database site based on user feedback
Please let us know which data you are using
and what you would like to see!
inclusive business@ifc.org
http://datatopics.worldbank.org/consumption/
Exploring the Global Consumption Database
Introducing the Global Consumption Database 15
Country Level Data: Country Dashboards
Introducing the Global Consumption Database 16
Sector Level Data: Sector dashboards
Introducing the Global Consumption Database 17
Detailed product/service data: Dairy example
Introducing the Global Consumption Database 18
Food &
Beverage
Dairy
Cheese Fresh Milk
Preserved
milk
Eggs Butter
Grains
Meat &
Fish
Fruit &
Vegetables
…
Sector Level
Category Level
Product Level
Technical Notes: Important points for analysis
Introducing the Global Consumption Database 19
 Links to actual survey:
 Full list of sectors, categories, product/services:
Step 3: Mapping commodities to the ICP/COICOP classification
“Detailed description of sectors, categories, and products and services”
 List of items mapped to each product/service, by country:
Step 3: Mapping commodities to the ICP/COICOP classification
“Summary table indicating the number of items mapped to each COICOP product/service”
 Sample size by country:
Thank you
Questions?
Comments?
Feedback?
www.inclusive-business.org
www.ifc.org/inclusivebusiness

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Discover BOP Market Insights with the Global Consumption Database

  • 1. Data insights into the BOP market size Webinar June 24, 2014 4:00 to 5:00 p.m. Geneva time
  • 2. Welcome to this webinar • WBCSD focus: scale up action, develop skills, gain greater insights, and overcome both internal & external barriers to scaling up inclusive business ventures in emerging markets around the world • One of the key barriers: data to inform business strategy is often difficult to find – key input for early-stage research and analysis of opportunities • Today’s webinar: share key takeaways about the Global Consumption Database, a freely available resource recently launched by IFC, a member of the World Bank Group • Valuable market data platform providing insights on consumer spending patterns in developing countries – How much do households living at the BOP spend on food? water? energy? housing? etc.
  • 3. 1. Introduce the Global Consumption Database & how to use it 2. Open up for questions, comments, feedback 3. Wrap-up What are we going to do during this hour?
  • 4. WBCSD  Filippo Veglio Director, Social Impact IFC Inclusive Business Model Group  Eriko Ishikawa Global Program Manager  Sabine Hertveldt Senior Operations Officer  Kathy Gaertner Associate Operations Officer Who is on the line?
  • 5. Introducing the Global Consumption Database Inclusive Business Models Group
  • 6. Agenda Introducing the Global Consumption Database 6  Challenges with market data  What is the Global Consumption Database?  Key data points  Next steps  Exploring the database
  • 7. Barriers include: Businesses face challenges obtaining data on emerging markets consumers Introducing the Global Consumption Database 7  A lack of market data for many emerging markets and for lower consumption segments  Customized market research often costly for exploratory phase  Existing data often too high level and not available for custom analysis
  • 8. Global Consumption Database: Database offers comprehensive dataset on consumer spending in emerging markets Introducing the Global Consumption Database 8  Online tool designed for wide variety of potential users, especially for those formulating business strategies  Includes spending data for all consumption segments, from lowest to higher  Data freely available for download and custom analysis, including product/service level data
  • 9. Country 92 emerging markets Database enables companies to do detailed market analysis on a variety of levels Introducing the Global Consumption Database 9 Location Consumption segment Sector Category Specific products & services Rural and urban areas Lowest, low, middle, higher segments Food & beverage, housing, clothing & footwear, energy, transport, health, ICT, education, personal care, water utility, financial services 15 sub-sector level categories: including dairy, grains, meat and fish, and fruits and vegetables within the food and beverage sector 107 detailed sub-category items: including fresh milk, preserved milk, eggs, butter, and cheese within the dairy category
  • 10. Helps companies expand to new markets, new consumer segments Introducing the Global Consumption Database 10 “…We have a new, up-to-date, and authoritative source of intelligence about the size of the current BoP market, how the majority of humanity prioritizes spending, and where companies might effectively focus their attention in exploring new business opportunities among the world's underserved… [the] new data base will soon become an indispensable tool for any entrepreneur or company serious about inclusive business.” ~ Stu Hart, S. C. Johnson Chair Emeritus in Sustainable Global Enterprise, Cornell University and co-author (with C.K. Prahalad) of "The Fortune at the Bottom of the Pyramid."  Lowers upfront cost to explore business opportunities  Size up existing demand and willingness to pay in particular product and service categories  Identify sectors and categories where demand may be latent  Clarify needs for where more in-depth market research is needed to evaluate specific opportunities
  • 11. Introducing the Global Consumption Database 11 * In 2005 purchasing power parity terms The base of the pyramid (BOP) is a large global market Base of the Pyramid Lowest Consumption Segment Low Consumption Segment  4.5 billion people  Already $5 trillion* market
  • 12. Introducing the Global Consumption Database 12 * Figures in 2005 purchasing power parity terms Points of Note: • Food & beverage spending share decreases as total spending rises • Transportation’s spending share increases the most of any sector as spending rises • BOP spends more in aggregate than the higher consumption segments combined in food and beverages, energy Majority of BOP spending goes to food & beverages $77B
  • 13. The “BOP” itself is a very diverse group Introducing the Global Consumption Database 13 * In 2005 purchasing power parity terms Spending: “BOP” encompasses 3 billion people spending less than $3/day* and 1.5 billion people who spend up to 3x that amount Location: 1.7 billion in urban environments 2.8 billion in rural areas Age: 44% under age 20; 61% under age 30 Illustrative data points: Requires different types of products, distribution channels, pricing and payment options
  • 14. Next Steps for the database Introducing the Global Consumption Database 14  Add new survey data, as available  Possibly add staff projections for market size in 2020  Refine database site based on user feedback Please let us know which data you are using and what you would like to see! inclusive business@ifc.org http://datatopics.worldbank.org/consumption/
  • 15. Exploring the Global Consumption Database Introducing the Global Consumption Database 15
  • 16. Country Level Data: Country Dashboards Introducing the Global Consumption Database 16
  • 17. Sector Level Data: Sector dashboards Introducing the Global Consumption Database 17
  • 18. Detailed product/service data: Dairy example Introducing the Global Consumption Database 18 Food & Beverage Dairy Cheese Fresh Milk Preserved milk Eggs Butter Grains Meat & Fish Fruit & Vegetables … Sector Level Category Level Product Level
  • 19. Technical Notes: Important points for analysis Introducing the Global Consumption Database 19  Links to actual survey:  Full list of sectors, categories, product/services: Step 3: Mapping commodities to the ICP/COICOP classification “Detailed description of sectors, categories, and products and services”  List of items mapped to each product/service, by country: Step 3: Mapping commodities to the ICP/COICOP classification “Summary table indicating the number of items mapped to each COICOP product/service”  Sample size by country: