Introduction to the Base of the Pyramid
The Base of the Pyramid (BOP) is a demographic term that covers the approximately four billion people who live on less than USD 8 per day at the base of the global economic pyramid. Companies have traditionally not considered this group a potential market because of the low individual income of BOP households. As a result, BOP markets often lack competition, which leads to inefficient markets where poor consumers often pay over-price for goods of low quality. By rethinking business models, an increasing number of companies are however finding that low-income consumers constitute an important business potential.