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Water Export Dag 26 juni WASH workshop
This document discusses business opportunities in water and sanitation products and services for the bottom of the pyramid (BOP) market. It outlines that BOP markets have large volumes but low margins, weak institutions, and are difficult to access. Successful products and business models catering to the BOP are affordable and accessible, functional, high quality, sustainable, and enable local partnerships and production. The document provides examples of proven products like affordable ceramic water filters and outlines steps to take such as understanding the local context, field testing, and going to market through awareness, availability, affordability and acceptability.
Water Export Dag 26 juni WASH workshop
- 1. WASH Secretariat Water Sanitationand Hygiene Secretariat 18 juni 2009
- 2. Water and Sanitation: businessopportunities at the bottom of the pyramid?
- 3. Background • In orderto accomplish both economic and societal goals, there is a trend towards an entrepreneurial way of development • Southern countries offer a potentially interesting market (BOP): more and more Northern and Southern based businesses aim to reach this market • Regarding Appropriate Technology (AT) for water and sanitation, the Netherlands has the know-how to position itself well
- 4. Bottom of thePyramid: • large volumes • low margins • weak institutions • difficult to access • bound to local context
- 5. How to caterthe BOP? • understand the local context • transform need to effective demand • focus on accessibility and affordability • start small, be ready to scale up quickly • create partnerships
- 6. What kind ofproducts? • Accessible: affordable, spare parts available • Functional: easy to operate, low maintenance costs • Of high quality: solid, easy to distribute, small compact • Sustainable: durable • Manageable: straight forward • Enabling environment: education, instruction
- 7. Successful Product: Affordable: EUR 7,= Productive: > 30 liters per day Easy to use: simple and robust Spare parts available: EUR 3,= Durable: > 3 yrs
- 8. Step by step: •Getting Started • Making Plans • Field Testing • Going to market
- 9. Getting Started: • DoI have what it takes? • Talk to future clients • Initial cost calculations (TCO) • Product Market Combinations • Business Model
- 10. Making Plans: • Cocreate (product development) • Lean and mean (low cost base) • Tap into existing infra structures • Produce locally (but stay in control) • Share benefits (with selected partners)
- 11. Field Testing: • Talkto your future clients • Commercial Pilot • Testing and creating partnerships • Investigate local production • Prepare setting up local entity
- 12. Going to market: •awareness • availability • affordability • acceptability
- 13. Finance: • Blend ofinstruments • Depending on credit need • Subsidizing the non profitable top • Co financing to share the risks
- 14. Proven practice BWNF • Very affordable and high quality ceramic filter • Local Production Facility in India (Auroville) • Promising order portfolio (40.000) • Clean Water to > 200.000 Indian people
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- 16. Proven practice Supplier Scope of business (Social) Investor Local Entrepreneur Grants Aqua Shop Tanzania Local entrepreneur Financiers Aqua Shop Blocks Aqua Shop Franchises Aqua Shop Blocks Aqua Shop Franchises Aqua Shop Blocks Aqua Shop Franchises Aqua Shop Blocks Aqua Shop Franchises SWE SWE SWE SWE Consumers
- 17. A BUSINESS CASE CALLED WATER AND SANITATION