The New BoP Economy

Building the Ecosystem

April 2014
Jack Sim Founder of BoP Hub and World Toilet Organization

The global BOP related charity size is USD 2 trillion, but the impact has been limited
Developed World Aid to Emerging Economies

USD 2 Trillion

Global Charity Segmentation (Estimated) Over the past four decades, the developed world has transferred around $2 trillion in aid to emerging economies However the impact, in terms of a positive permanent transformation, has been limited. NGOs have focused on a variety of needs, but despite enormous achievements in many places around the world only a small fraction of these needs have been served.

Global BOP Population Geographical Distribution

Rest 11%
Latin America 10%
~All in emerging economies

India 40%

Africa 16%

China 23%
Source: A.T. Kearney, TNS Global, London School of Economics

The BoP income & purchasing power

Base of the Pyramid is home to 4 billion people who live on $8 or less a day
Combined purchasing power of the BoP market in 8 emerging markets China, India, Brazil, Russia, Indonesia, Turkey, South Africa, Thailand are worth $12.5 trillion The BoP is a source of untapped entrepreneurial opportunity; capitalizing on this opportunity will bring cheaper, faster and better services to the poor

A brave new BoP market place: The Opportunity

4 Billion New Customers

Timing is Perfect

Trend is Growing

Success Models

Human Capital

Funds Follow Opportunities

BoP sectors and market value

The financial worth of each sector:
Food: $2,895 billion Energy: $433 billion Housing: $332 billion Transportation: $179 billion Health: $158 billion ICT: $51 billion Water: $20 billion

BoP health innovators

Market opportunity of 300,000 low-income patients per year
Produces 1.8 million lenses for price as low as $2 Largest provider of eye surgeries in the world

Improved access to healthcare for 12 million people across Africa Enable efficient supply chain distribution from regional to community level Affordable and reliable last mile distribution for healthcare

BoP health innovators

Market opportunity of 703 million people
Increase productivity by 35% Market-based approach; selling affordable and quality eyeglasses to the BoP consumer

Tele medicine consultations reaching 31,000 people 300,000 access to safe drinking water daily Cross-sector approach to improve wellness, productivity and quality of life.

The island situation

To date, only a handful of inclusive business models have managed to reach a significant amount of people. Instead, most remain island solutions, whose impact is limited. ENDEVA, 2014 Different interests and uncoordinated efforts leads to an inefficient use of resources

There is Great Profit, High Efficiency & Impact in Cutting Waste

Leveraging on each others assets to create a vibrant ecosystem

BoP Communities

Goverments Foundations NGOs Social Entrepreneurs

MNCs & SMEs

International Forums

Development banks

UN Groups

Universities
9

Wellness market opportunities

2008

Human Wellness & Vitality

The Nutrient Value Chain intersects with and contributes to human wellness & vitality.
Healthy Environment Nutrient Rich Farming Full Nourishment Foods

Primary healthcare Expert healthcare Mental health Nourishment Clean water

Ashokas Wellness/Nutrition Innovation Labs catalyze new business opportunities by exploiting this connection and sourcing novel solutions to deliver wellness, and transform the nutrient value chain.

Sanitation Personal Education

Wellness the vitality to live up to our full potential as human beings is the goal. Access to illness care plays a role, but prevention primary care, full nutrition, safe drinking water, and sanitation is both more important and less expensive.
Safe drinking water

Full nutrition

Sanitatio n

Medical care access

Wellness cannot be pursued solely or even primarily through the conventional medical care system, and yet few resources are devoted to assuring full nutrition, safe drinking water, and sanitation for the BOP, as well as pushing health to the doorstep.

 Strategy: bring health & wellness services to homes, schools and workplaces Use mobile devices Less expensive More effective in changing healthseeking behavior

Distribution Network

Cut Waste

Increase Efficiency

Leverage on Existing Initiatives

Scaling Up

Replication

 Global science based company active in health nutrition and materials

Looking for new market penetration Market survey & field test of new nutrition products Target region: Cambodia

Field test Scale and replication Distribution Monitoring and evaluation Capacity building Job creation

BOP WORLD CONVENTION AND EXPO 2014

To be held in Singapore 28 30 August 2014

Thank you