• You say the small consumer at the bottom of the buying pyramid plays a significant role. But why should companies invest in the bottom of the pyramid?
A fundamental point in the book is that the demand structure of India is different. We’re a lot of people, consuming a little bit each and that adds up to a lot. That’s why we are like that only.
In the bottom of the pyramid, there are 600 million or more people, earning less than a dollar a day. But together we control almost 30 per cent of a trillion dollar economy. So there is money in the bottom of the pyramid. There are lots of people consuming a little bit each, who live in the boondocks and who are hard to reach.
They are important because they are financially worth it. They are important because the rates at which our incomes are growing, they will soon be your point consumer.
If you build loyalty with them today, they will be with you in the future. And I think they’re also important because if you can make the quality if their life better then isn’t that what business is all about?
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