Sustainability requires reciprocity. It is in the interest of business to develop the BoP market, design innovative inclusive models that help expand economic opportunities where it matters most: In low-income communities. Crucially, companies that develop inclusive business models secure future revenue streams and profits, and also reap further indirect company benefits, such as brand loyalty, employee motivation, and external social benefits for the communities they serve.
Businesses selling products and services typically deal with three main sets of challenges when it comes to trading with the BoP:
Lack of information: How big is the market? How do the spending patterns change and how are products and services used
at the BoP? Who sells them and through which distribution channels?
Lack of finance: Potential partners, consumers and suppliers usually have limited access to finance, meaning they need to rely on informal or parallel sources of finance.
Lack of infrastructure: Physically accessing markets is often harder than for traditional markets as a result of poor or inadequate infrastructure, increasing the cost of trading with the BoP.