Uwe Schwarz 30.08.2011

BOP workshop Tallinn 2011

Uwe Schwarz (CEO) uwe.schwarz@sibesonke.com Mobile: +358 50 3400 469

Content

1.  BOP – Why an Opportunity?

2.  Challenges in BOP

3.  The Sibesonke solution

4.  Lessons Learned

3

Base of the Pyramid (BOP)

Why an Opportunity?

BOP Opportunity: (1) Many Strong Needs

BOP Opportunity: (2) Scale

Small spending power

x

Many customers

=

Business opportunity

BOP Opportunity: (3) Low Market Efficiency

Source: C.K. Prahalad: “Serving Profitably”

Consumer price differences within Mumbai / India:

Water for 1 cent in Mumbai

7

In the slums In the richest area

36 times more

A Cow in Finland Gives 7x More Milk than a Cow in Kenya

8

Another Example of Lower Market Efficiency. We can’t blame nature for it.

9

Challenges in BOP

Challenges with BOP: (1) Distance

(a) Geographic distance (b) Mind set – which is more severe?

Challenges with BOP: (2) Local Languages

3,000 languages in Africa 11 official languages in South Africa

Challenges with BOP: (3) Trust

Immediate return for value must be visible

Solar?Carba*eries

Challenges with BOP: (4) Instability

Political, juridical, ethical, ...

TransparencyInterna5onalPerceivedCorrup5onIndex2010

14

Sibesonke Business

Un-connected

Phone users

Global Connectivity Pyramid (7bn people)

Internet

3bn

2.5bn

1.5bn

Our Vision: Empower people The Size of the Market is Huge

15

Socio-Economic Empowerment

Market Need Mobile Communities Over Basic Phones

16

Business and social contacts

Locally relevant information digitalized on basic phones

Solution Internet Services to People Without Internet

The best of Internet …

… to the next billion

users

User profiling

Social networks

Viral Growth User Generated

Content

Peer recommendation

2. 3.1.-Johannesburg: 1. Painter Mike... 2. MAGWETE T... 3.Welding solu... Answer

Find experts

Find & share expertise here! 1.Find experts 2.My expertise 3.Success Stories

Find an Expert

1.Find-an-Expert 2.Find a Busines 3.Chat Room 4.Polls 5.Market Place

Call *120*484#

17

User Acceptance User “Wow“ and Exponential Growth

Daily Users South Africa

User “Wow”

Viral Growth 40%/Month

18 Company Confidential

19

Lessons Learned

Lessons Learned

(1) Consumer Centric: BOP CUSTOMERS – cost conscious,

still demanding, word-of-mouth

(2) People at the BOP cope very well with limitations as

long as the basic value is right

(3) Tailor-made solutions – not dumping smaller/scaled-

down products

(4) Involve local partners

Conclusions

The BOP opportunity is largely still untapped. But venture

capital with BOP focus grows.

Customer understanding essential for any business is

harder to get in BOP.

BOP specific challenges need to be addressed.

Thank You!