Doing business at the BOP

Danish companies traditionally transfer their existing business model when selling abroad. Entering emerging markets, Danish exporters therefore often find themselves chasing the same five to ten percent of consumers that are classified as high-income earners. The unique characteristic of the BOP market challenges the economic logic of developed markets, where high margins are essential. BOP markets, on the contrary,  are based on a low margin per unit but a high volume.

A new approach

In order to target the BOP consumer, companies must think innovatively of how their core competencies can be utilized to create a product that fits the needs and preferences of low-income consumers. Developing a business model for low-income markets requires companies to adopt a holistic approach that takes into consideration how products, production, distribution, price, and marketing can be optimized to meet the unique characteristic of the BOP market.

With more than four billion potential customers, companies that succeed in developing an innovative approach are well positioned to tap into a market with vast opportunities, and to build their future markets.

However, entering the BOP market can be challenging for companies without experience in targeting low-income customers in developing countries. On this website you can find inspiration and advice. You can also learn more about how DI International Business Development (DIBD) can help your company assess the market potential and develop a successful business model.

Read more about DIBD’s services