WBCSD-IFC Inclusive Business webinar - Data insights into the current size of the base of the...
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Data insights into the BOP market size Webinar June 24, 2014 4:00 to 5:00 p.m. Geneva time
description
On June 24, 2014, the World Business Council for Sustainable Development (WBCSD) and the Inclusive Business Models Group at the International Finance Corporation (IFC), a member of the World Bank Group, organized a webinar sharing key takeaways about the Global Consumption Database, launched by IFC a few weeks ago. The database is the most comprehensive and freely accessible dataset to date on consumer spending patterns in developing countries, compiled from surveys of more than a million households around the world. By making data on spending freely available in a form that is useful to the private sector, IFC aims to lower the up-front cost of exploring inclusive business opportunities, thereby reducing a critical barrier to investment and accelerating the pace of inclusive business development around the world. For more information on this webinar (incl. background documentation), see http://www.inclusive-business.org/2014/06/webinar-wbcsd-ifc-global-consumption-database.html
Transcript of WBCSD-IFC Inclusive Business webinar - Data insights into the current size of the base of the...
Data insights into the BOP market size
Webinar
June 24, 20144:00 to 5:00 p.m. Geneva time
Welcome to this webinar
• WBCSD focus: scale up action, develop skills, gain greater insights, and overcome both internal & external barriers to scaling up inclusive business ventures in emerging markets around the world
• One of the key barriers: data to inform business strategy is often difficult to find – key input for early-stage research and analysis of opportunities
• Today’s webinar: share key takeaways about the Global Consumption Database, a freely available resource recently launched by IFC, a member of the World Bank Group
• Valuable market data platform providing insights on consumer spending patterns in developing countries – How much do households living at the BOP spend on food? water? energy? housing? etc.
1. Introduce the Global ConsumptionDatabase & how to use it
2. Open up for questions, comments, feedback
3. Wrap-up
What are we going to do during this hour?
WBCSD
Filippo VeglioDirector, Social Impact
IFC Inclusive Business Model Group
Eriko IshikawaGlobal Program Manager
Sabine Hertveldt Senior Operations Officer
Kathy GaertnerAssociate Operations Officer
Who is on the line?
Introducing theGlobal Consumption Database
Inclusive Business Models Group
Agenda
Introducing the Global Consumption Database 6
Challenges with market data What is the Global Consumption Database? Key data points Next steps Exploring the database
Barriers include:
Businesses face challenges obtaining data on emerging markets consumers
Introducing the Global Consumption Database 7
A lack of market data for many emerging markets and for lower consumption segments
Customized market research often costly for exploratory phase
Existing data often too high level and not available for custom analysis
Global Consumption Database:
Database offers comprehensive dataset on consumer spending in emerging markets
Introducing the Global Consumption Database 8
Online tool designed for wide variety of potential users, especially for those formulating business strategies
Includes spending data for all consumption segments, from lowest to higher
Data freely available for download and custom analysis, including product/service level data
Country 92 emerging markets
Database enables companies to do detailed market analysis on a variety of levels
Introducing the Global Consumption Database 9
Location
Consumption segment
Sector
Category
Specific products & services
Rural and urban areas
Lowest, low, middle, higher segments
Food & beverage, housing, clothing & footwear, energy, transport, health, ICT, education, personal care, water utility, financial services
15 sub-sector level categories: including dairy, grains, meat and fish, and fruits and vegetables within the food and beverage sector
107 detailed sub-category items: including fresh milk, preserved milk, eggs, butter, and cheese within the dairy category
Helps companies expand to new markets, new consumer segments
Introducing the Global Consumption Database 10
“…We have a new, up-to-date, and authoritative source of intelligence about the size of the current BoP market, how the majority of humanity prioritizes spending, and where companies might effectively focus their attention in exploring new business opportunities among the world's underserved… [the] new data base will soon become an indispensable tool for any entrepreneur or company serious about inclusive business.”
~ Stu Hart, S. C. Johnson Chair Emeritus in Sustainable Global Enterprise, Cornell University and co-author (with C.K. Prahalad) of "The Fortune at the Bottom of the
Pyramid."
Lowers upfront cost to explore business opportunities
Size up existing demand and willingness to pay in particular product and service categories
Identify sectors and categories where demand may be latent
Clarify needs for where more in-depth market research is needed to evaluate specific opportunities
Introducing the Global Consumption Database 11
* In 2005 purchasing power parity terms
The base of the pyramid (BOP) is a large global market
Base of the
Pyramid
Lowest Consumption
Segment
Low Consumption
Segment
4.5 billion people
Already $5 trillion* market
Introducing the Global Consumption Database 12
* Figures in 2005 purchasing power parity terms
Points of Note:
• Food & beverage spending share decreases as total spending rises
• Transportation’s spending share increases the most of any sector as spending rises
• BOP spends more in aggregate than the higher consumption segments combined in food and beverages, energy
Majority of BOP spending goes to food & beverages
$77B
The “BOP” itself is a very diverse group
Introducing the Global Consumption Database 13
* In 2005 purchasing power parity terms
Spending: “BOP” encompasses 3 billion people spending less than $3/day* and 1.5 billion people who spend up to 3x that amount
Location: 1.7 billion in urban environments 2.8 billion in rural areas
Age: 44% under age 20; 61% under age 30
Illustrative data points:
Requires different types of products, distribution channels, pricing and payment options
Next Steps for the database
Introducing the Global Consumption Database 14
Add new survey data, as available
Possibly add staff projections for market size in 2020
Refine database site based on user feedback
Please let us know which data you are using and what you would like to see!
inclusive [email protected]
http://datatopics.worldbank.org/consumption/
Exploring the Global Consumption Database
Introducing the Global Consumption Database 15
Country Level Data: Country Dashboards
Introducing the Global Consumption Database 16
Sector Level Data: Sector dashboards
Introducing the Global Consumption Database 17
Detailed product/service data: Dairy example
Introducing the Global Consumption Database 18
Food & Beverage
Dairy
Cheese Fresh Milk Preserved milk Eggs Butter
Grains Meat & Fish
Fruit & Vegetables …
Sector Level
Category Level
Product Level
Technical Notes: Important points for analysis
Introducing the Global Consumption Database 19
Links to actual survey:
Full list of sectors, categories, product/services:
Step 3: Mapping commodities to the ICP/COICOP classification“Detailed description of sectors, categories, and products and services”
List of items mapped to each product/service, by country:Step 3: Mapping commodities to the ICP/COICOP classification“Summary table indicating the number of items mapped to each COICOP product/service”
Sample size by country:
Thank you
Questions?
Comments?
Feedback?
www.inclusive-business.org
www.ifc.org/inclusivebusiness
