Reaching for the fortune at the bottom of the pyramid - Innovative business opportunities in developing countries

Transcription

1 Reaching for the fortune at the bottom of the pyramid - Innovative business opportunities in developing countries International conference, co-organised by the Confederation of Danish Industries and the Danish Industrialisation Fund for Developing Countries Potentially huge market opportunities among poor consumers in developing countries? Not the most obvious idea, most people would think. But a fast rising number of Western based companies are discovering new and highly profitable markets in the developing countries with little or even no competition. The world s two to four billion poor people are consumers in their own right. They may not have much to spend individually, but serving their basic needs can nevertheless be a profitable business because of the sheer number of potential customers. According to estimates the market "at the bottom of the pyramid" (BOP) has a value of $13 trillion! The Confederation of Danish Industries in cooperation with The Danish Industrialisation Fund for Developing Countries, is therefore taking the opportunity to present and discuss this new BOP business concept and is honoured to present one of its "fathers" professor Stuart L. Hart, Cornell University, to give the key note speech. Together with professor Hart we will present the participants with innovative strategies to develop high quality products and services for costumers with low purchasing power, taking into account that it requires new and different business models. We will also present participants with practical cases of how the BOP concept has worked for specific companies. The alternative view of the poor as consumers is widely considered to be beneficial to all parties. By turning the poor into consumers they are given access to information through for instance communication technology, access to choice among a larger range of products and they can earn a living from selling BOP products to other consumers. Hence, the conference is also linked to the debate on responsible corporate citizenship and the private sectors' crucial role in achieving the UN's Millennium Development Goals.

2 Reaching for the fortune at the bottom of the pyramid - Innovative business opportunities in developing countries Speakers Dr Stuart L. Hart, Professor Cornell University is one of the world's top authorities on the implications of sustainable development and environmentalism for business strategy. Professor Hart is the author of path-breaking articles and books articulating how business can profitably serve the needs of the developing world. Ms Ulla Tørnæs, Minister for Development has been in the forefront of promoting private sector development in order to fight poverty in the developing countries. The Danish government recognises the crucial role of the private sector in development assistance and acknowledges the need for innovation in public-private partnerships to attain the UN Millennium Development Goals Mr Finn Jønck, Managing Director of IFU/IØ/IFV has a long and active international career in the UN, OECD and the World Bank. As the managing director of The Industrialisation Fund for Developing Countries (IFU), Mr Jønck is playing an active role in promoting economic activity in the developing countries by co-financing in the form of share capital participation, loans and guarantees. Mr Steen Donner, Director, DI International Business Development(DIBD) has been the driving force in the start-up and development of DIBD offices in Shanghai, Moscow and Sao Paolo. Based on his 10 years of experience in Asia and Africa. Mr Donner has detailed knowledge on the special business environment in the developing countries. He has assisted more than 40 companies with preparation of business plans, financing, risk-analysis and entrystrategies in more than 65 international projects. Mr Jesper Jarlbæk, Social Entrepreneur and Investor, Southern Trident. Southern Trident is a Danish start-up company - a true social entrepreneur. Southern Trident manufactures and sells AquaSafe, a cheap and simple household water purification device using only solar energy. AquaSafe is manufactured in South Africa in cooperation with a Black Empowerment partner and is made available to poor people in both rural and urban areas through a mix of innovative strategies involving partnerships with humanitarian organizations and other companies. Mr Jens Erik Møllenbach, Managing Director, Fan Milk Nigeria, is one of the key architects behind the expansion strategy for Fan Milk in Africa. The Danish company is selling diary products in several countries in Western Africa. Fan Milk is a case study on the importance of completely rethinking both products, production, distribution and sales approaches when entering BOP markets.

3 Reaching for the fortune at the bottom of the pyramid - Innovative business opportunities in developing countries Speakers Mr Vimal Shah, CEO, Bidco Group is managing an ever-growing distribution network for the company's edible oil, fats and hygiene products across Africa. Bidco Group has embraced BoP as a business model and is constantly innovating to overcome barriers and challenges in the BoP market. With affordable pricing, reliable services and the best available brands, Bidco Group is delivering high quality products to their customers at the Bottom-of-the-Pyramid. Mr Kenth Hvid Nielsen, Segment Director, Grundfos has been active in the development, marketing and sales of the innovative water supply system - SQFlex. Equipped with any available power source e.g. solar panel and windmill, Grundfos SQFlex is operated by sustainable energy and is thus applicable in areas without power supply. This innovative system has been awarded some of the world's most prestigious design awards - if Design Silver Award, the Danish Design Award and the Confederation of Danish Industries' Product Award. Mr Thomas R. Gibian, CEO, EMP Africa. EMP Africa is a leading private equity fund manager targeting Africa. Mr Gibian joined Emerging Markets Partnership in 1995, prior to the formation of EMP Africa in 2005, as a managing director of the AIG Asian Infrastructure Fund. Prior to EMP, Mr Gibian was Co-Head of Structured Finance for the Asia-Pacific Region of Goldman Sachs (Asia) Limited from He joined Goldman Sachs in 1987 as vice president. Prior to Goldman Sachs, he was with Salomon Brothers ( ).

4 Programme - part 1 Part 1: Setting the stage: How can society enable companies to reach BOP markets? Registration Welcome address Mr Hans Skov Christensen, Director General, Dansk Industri Is there a market at the bottom of the pyramid? Dr Stuart L. Hart, Professor, Cornell University Investing in the future - growing with BOP Ms Ulla Tørnæs, Minister for Development Business and development - A true win win? Mr Finn Jønck, Managing director, The Industrialisation Fund for Developing Countries Past experience and expansion strategies in a BOP market for dairy products Jens Erik Møllenbach, Managing Director, Fan Milk Nigeria General discussion Lunch Wednesday, 6 June, 2007 at Confederation of Danish Industries

5 Programme - part 2 Part 2: Reaching BOP markets: How can Danish companies aim for the BOP markets? Opening remarks Mr Thomas Bustrup, Deputy Director General, DI BOP Strategies in a Danish context Is the BOP market relevant for the typical Danish company? Strategic approaches for innovation to the world's poorest. Dr Stuart L. Hart, Professor, Cornell University Successful Danish BOP Strategies Danish experiences with supply to the poor. Case stories and tools for approaching the BOP market. Mr Steen Donner, Director, DI International Business Development Innovative BOP strategies Case story from Southern Trident, a Danish SME selling its water purification device in Africa through a mix of innovative strategies. Mr Jesper Jarlbæk, Social Entrepreneur and Investor, Southern Trident Refreshments Rethinking distribution in BoP markets Case story from Bidco Group - one of East-Africa's most respected manufacturer of edible oils, fats and hygiene products. Mr Vimal Shah, CEO, Bidco Group Targeting the BoP market Case story from Grundfos - one of the world s leading pump manufacturer. Grundfos has designed a cost-efficient pump to meet the needs of local communities in remote areas without regular electricity supply. Mr Kenth Hvid Nielsen, Segment Director, Grundfos Investing in BoP Successful BoP strategies from an investment perspective. Lesson learned from EMP Africa - one of the leading private equity fund managers targeting Africa. Mr Thomas R. Gibian, CEO, EMP Africa Concluding remarks Mr Thomas Bustrup, Deputy Director General, DI Wednesday, 6 June, 2007 at Confederation of Danish Industries

6 Reaching for the fortune at the bottom of the pyramid - Innovative business opportunities in developing countries Confederation of Danish Industries Wednesday, 6 June, 2007 at Registration: Name of participant:: Title: Company: Address: Zip code/city: Telephone: Branch: Please note that the conference language is English Sæt kryds Yes please, I wish to participate in part 1 Participation in part 1 - setting the stage - free of charge Yes please, I wish to participate in part 2 Participation in part 2 - reaching BOP markets at the price of 3000 kr. Yes please, I wish to participate during the whole day (part 1 + part 2) Date: Signature: Registration to Mie Schiønnemann (fax: or mis@di.dk) Confederation of Danish Industries H. C. Andersens Boulevard 18 DK-1787 Copenhagen V Tel.: Fax.: