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07/09/16 21:45
http://www.forbes.com/sites/skollworldforum/2015/08/04/latin-ameriincome-millennials-present-big-market-opportunities/#695cc5de4576
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07/09/16 21:45
http://www.forbes.com/sites/skollworldforum/2015/08/04/latin-ameriincome-millennials-present-big-market-opportunities/#695cc5de4576
Page 2 of 3
07/09/16 21:45
If youre wondering how to access this market, technology and the internet are the
answers. Mobile phone penetration in Colombia is 105 percent, and in Peru 91 percent
of millennials have a cellphone. Seventy-six percent of Mexican heads of households
between 18 and 35 use the Internet.
While the BoP market for information technology and communications represents only
about three percent (US$25 billion annually) of total expenditures at the base of the
pyramid, the market grew at an annual rate of four percent between 2000 and 2010.
According to Lexia, a Mexican firm that specializes in low-income markets,
smartphones are a primary need for BoP millennials in Mexico. Interestingly, theyve
discovered that Mexican millennials primarily use the Internet to connect with people,
as opposed to looking for information.
This hints at how different the interests of the BoP are in contrast to more affluent
market segments, and could help direct marketing efforts aimed at BoP millennials; for
example, those that promote higher education or preventive health practices.
Technology and the internet are already enabling companies to reach BoP millennials.
Mexicos Barared is an example: it is a network of more than 1,000 kiosks in
convenience stores in BoP neighborhoods. The kiosks are equipped with iPads with
high-speed broadband that clients can use to access to a myriad of financial and
telecommunications services, such as phone calls, cellphone top-ups, bill payments,
email access, Skype videoconferences, and banking services.
Daviplata, in Colombia, is a mass mobile money platform that allows BoP consumers to
manage their cash with only a feature phone. Clients can transfer money, withdraw
cash, pay utilities and receive remittances, among other services.
Dont miss this opportunity. The market for new, impactful businesses that target BoP
millennials unmet needs and desires is vast. And those who start building bonds of
loyalty with this segment today will be the preferred brands of tomorrow.
http://www.forbes.com/sites/skollworldforum/2015/08/04/latin-ameriincome-millennials-present-big-market-opportunities/#695cc5de4576
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