Tapping the BOP Segment - Opportunities Galore - Free Resources - Articles

Tapping the BOP Segment - Opportunities Galore

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BOP - A Global Opportunity contd...
Indian Examples

India, too, is not lagging behind, in tapping the BOP segment. There are innumerable examples of companies, both multinational and regional, which have identified the BOP markets, the consumers over there, and have been serving those markets with great interest and enthusiasm.

These companies have transformed the BOP into a potential market and bringing about a change in the lives of BOP consumers. Some of the initiatives taken by companies are “e-Choupal” by ITC, Project “Shakti” by HLL, Microfinance initiatives by ICICI, etc.

Prahalad says that providing BOP consumers with access to the latest technology and products designed to meet their requirements will help improve the quality of their lives.

ITC, one of India’s leading agribusiness and consumer products companies, came up with its initiative “e-Choupal” in 2000, which helped farmers conduct ecommerce transactions through a network of villages. This program enabled farmers sell their produce with better convenience and at higher prices. ITC started with six e- Choupal centers in 2000. By 2002 it was operating around 1200 centers covering more than 6500 villages in India.

In 2001, HLL, one of the largest FMCG companies in India, came up with its Project Shakti, to target rural consumers who have been untapped. The company planned to revamp its distribution network as part of its strategy to expand to rural markets. ITC provided self-employment opportunities to women in villages. Women belonging to “below the poverty line” segment were provided micro-credit to buy products from HLL and become distributors for the company. Through this initiative, HLL promoted entrepreneurial culture in the rural areas. Similarly, ICICI, the largest private bank in India, also offered microfinance to women through Self- Help Groups (SHGs). The bank offers micro-credit to women in villages to invest in small businesses and thus earn their living.

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