This guide is to demonstrate the possibilities for business to profitably fulfil the housing needs of people at the Bottom of Pyramid (BoP).
The affordable housing market for the Bottom of the Pyramid (BoP)—the billions of people at the bottom of the market, living on a few dollars a day, whose needs have not been met by the market—is low margin, complicated and novel for many businesses. This study, commissioned by GIZ GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), is a guide to help businesses that are interested in entering, and operating in, this market. The market is estimated at being worth US$ 700 billion a year, and growing due to economic and population growth. But BoP housing is often inadequate; the need is met through unregulated informal markets. This study addresses the macro- and micro-dynamics of BoP housing, using case studies to show how the demand for housing is being innovatively and profitably met by business. These are used to encourage businesses that may be considering to enter market, and to show that conventional approaches that may suit wealthier contexts are not sufficient considering the particular dynamics of the BoP housing market. Particular considerations need to be taken into consideration when providing housing solutions Read through this guide to see possibilities in the market, as it explores what needs to be—and what can be—done to help the BoP with regard to their housing needs.Download PDF