BOP Market, the bible ! PDF Print E-mail
Social Entrepreneurship - Trends and News of Social Entrepreneurship
Written by Cyril   
Tuesday, 20 January 2009 19:09

The world ressource institute release recently a very comprehensive report about bottom of the pyramid market. They analyze people living with less than 3000$ a year (they are called BOP3000) and not only the poorest of the poor (you should read BOP500). And have a "market" approach, in which all details are provided about consumption, habits, strucutres of these emerging markets. More info on http://pdf.wri.org/n4b_fulltext_hi.pdf

And you ll find below an excerpt about india and energy for BOP, chapter 7 of the report. My new life, indeed !

India has the largest measured energy market in Asia, with $163 billion in annual household spending. Some 52 percent of that market is in the bottom three BOP income groups (70 percent of the population), and 81 percent in the bottom five (92 percent of the population). Annual per household spending averages $342 in BOP500, $606 in BOP1000, and $751 in BOP1500.Rural areas account for 63 percent of the national energy market, or $102 billion in annual spending – and 70 percent of the BOP market, or $99.7 billion. The urban BOP energy market represents $42.3 billion in spending. For rural BOP households, energy spending averages around $705 a year, or $2 a day. For urban BOP households the average is $1,008 a year, around $2.75 a day. Per household spending in the mid-market segment averages $1,236 in rural areas and $1,368 in urban areas. The rural BOP energy market shows a large concentration in the lowest BOP income groups: 69 percent in the bottom three, compared with just 23 percent in the urban BOP energy market. This concentration is due in part to the small mid-market population in rural areas. While the mid-market population’s energy spending in rural areas amounts to $2.3 billion, it is nearly nine times as much in urban areas, at $18.7 billion. In contrast, the bottom three BOP income segments in rural areas spend $70 billion on energy – nearly 45 percent of all national per household energy spending. Yet in each of these three BOP segments household energy spending averages less than $2 a day. Kerosene is the most common lighting fuel for the lowest two BOP income groups – reported as the primary source by 65 percent of BOP500 households and 50 percent of BOP1000 ones. Kerosene use rates fall off dramatically in higher income segments, dropping to 7 percent in BOP2500 and BOP3000 and only 1 percent in the mid-market. Electricity becomes the main lighting source in BOP2500 and higher income levels. Firewood is the primary fuel source for cooking in the lower BOP income groups in India, reported by 75 percent of surveyed households in BOP500, 78 percent in BOP1000, and 60 percent in BOP1500. Use falls to only 23 percent of households in BOP2500 and 15 percent in BOP3000. Propane or LPG becomes the main fuel source for cooking in higher income groups, reported by 65 percent of households in BOP2500, 79 percent in BOP3000, and 87 percent in the mid-market.
 

FORM_HEADER


FORM_CAPTCHA
FORM_CAPTCHA_REFRESH