Decoding the Next Billion Consumers

Decoding the Next Billion Consumers

          
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Decoding the Next Billion Consumers

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    • Traditionally considered unprofitable to serve, the 1 billion low-income consumers in emerging markets around the world are economically active, spending just over $1 trillion a year.

    • Already as much as one-third of the next billion’s spending goes for trading up to better products and premium brands.

    • To reach the next billion and serve them profitably, companies must look beyond the stereotypes to serve the segment in creative ways.

    • Companies can achieve sustained competitive advantage by understanding the unique needs of the next billion and serving this promising but neglected segment.

     

    They aren’t affluent—they don’t even qualify as middle class—but they aren’t the poorest of the poor either. They spend just over $1 trillion a year. Yet they are only beginning to enter traditional consumer markets. They live in Brazil, China, and India, but they can also be found in Africa, Central and Eastern Europe, and other parts of Asia. Together they represent the largest untapped consumer segment in the world. They are the next billion.

    Already as much as one-third of the next billion’s spending goes beyond providing for the subsistence needs of basic food, clothing, and housing. They use branded shampoos and detergents regularly, and they sometimes indulge in a bar of chocolate or bottle of perfume. A good number own televisions, refrigerators, and DVD players. Many are saving for washing machines and even computers. The next billion are young, with some 40 years of consuming ahead of them. They are also economically active, and their incomes are growing faster than the economies of their countries.

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    ASIA-PACIFIC
    • Partner & Managing Director
    • Mumbai
    CENTRAL AND SOUTH AMERICA
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