An Introduction

What is Base of the Pyramid?

In the global economy, the entire world population can be described in the model of a pyramid. The base of this pyramid is the largest, but poorest socio-economic group. In world economy a significant percentage of the total population lives on less than $2 a day. In Indian context people earning less than Rs 1.5 lakh annually comprise this section. This strata faces immense problems. Among many, water sanitation and hygiene is a major concern for them. Because of low awareness reaching remains difficult.

What are social determinants?                              

Social determinants are the economic and social conditions in which people live. This term is used as a shorthand to encompass the social, economic, cultural and environmental factors which determine a person’s lifestyle, especially health. The most important determinants are those that produce stratification within a society such as the distribution of income, discrimination (for example, on the basis of gender, class, ethnicity, disability, or sexual orientation), and political and governance structures that reinforce rather than reduce inequalities in economic power. These structural mechanisms that affect the social positions of individuals constitute the root cause of inequities in living conditions.

Tapping BoP market

The government realizes the need of serving the base of the pyramid and the corporate sector has accepted that the strata in question is a huge market full of little explored opportunities. Many companies have made a difference by experimenting with the BoP and deriving promising results. Telecom service providers Bharti Airtel changed the industry by moving away from the standard metrics and employing alternative measures like out – sourcing non – core functions, designing unique value – added services for its varied customer base, alliances with handset manufacturers targeted at rural market, initiatives like vernacular messaging, voice messaging to overcome language barriers.

A lot of public – private partnerships have also grown from the need of serving the BoP market profitably. Britannia Nutrition Foundation has partnered with Karnataka government and adopted a village. They are making efforts to raise the nutrition and hygiene standards of the village and alongside, Britannia is successfully promoting and selling its products fortified according to the nutritional needs of the village.

But we still have a long way to go before we can fully utilize the potential of the BoP market. Corporate sector has forayed into it but its steps are still tentative. Non competitive Private – Private Partnerships (the new PPP) can also be explored to derive better results for the consumer and the provider.

Why a symposium on the BoP?

The BoP is a stark reality. In the Indian context various studies and surveys have quoted different figures for people comprising this stratum. As assessed from data available of most studies, assuming that 200 plus million Indians constitute the base of the Indian pyramid would be presenting a rosy picture. But this big a number of Indians who are at the absolute base of the economic ladder can not be ignored as because of their number this stratum has significant socio – economic power. Catering to their needs and aspirations is not just a social necessity but also a business opportunity. Tapping their vast combined buying power in an effective manner will not only help reduce poverty but also yield profit. This conference defines the Base of the Indian Pyramid, discusses the roadblocks in catering to it and explores various solutions which can facilitate access to this strata

The symposium ‘Access @ BoP’ is a sincere initiative to help raise living standard of the vast Indian population living on less than Rs 75000 per year (and between Rs 75,000 to Rs 1,50,000 a year) and also make it a profitable venture for the other party (As researched by an Economic Research Firm, Indicus Analytics)