Page 10 - Market Creation for Clean Energy Access - Insights from Jeevika-TERI partnership in Bihar
P. 10
Creating a Market in BoP the community, to consider it as a lucrative
business opportunity.
BoP is often misinterpreted as an underserved
market when no ‘ready to go’ market actually The overall market creation process can be
exists there. To operate successfully in the BoP, divided into three stages, namely, seeding, base
enterprises need to focus on unique products and building, and growth and consolidation (Simanis
services. In addition, creation of a local channel 2010). The paper adopts these stages as a broad
using unconventional partnerships with grassroots framework for market creation and contextualizes
institutions, government, and community-based them to the TERI’s intervention in partnership
institutions for service delivery or product sales is with JEEViKA and Department for International
essential. Further, enabling access to products and Development (DFID) that has triggered market
services through innovative financing mechanisms creation and subsequently introduced enterprise-
or through customized channels to ensure physical based delivery model for energy access in
availability of product/service for end user are vital Purnia, Bihar.
elements (Hammond et al. 2007). Hart and Prahlad
(2013) describe the transition of BoP into an active Purnia is one of the most underdeveloped and
market as a development activity and clarify that it is flood-prone districts of Bihar. Of the 89 per cent
not about serving an existing market more efficiently. of its households, only 8 per cent have access to
electricity. Owing to its massive poverty, the district
Creating a market in the BoP segment requires is among JEEViKA’s primary areas of focus and has
interest to be generated on both the demand and a network of over 40,000 women SHGs or self-help
supply side. On the demand side, the creation of a groups (BRLPS 2015a). With each group having an
market entails value creation and embedding specific average membership of 10–20 women, JEEViKA
products/services/technology solutions into the engages over 0.5 million women in various micro-
lives of end users. On the supply side, it involves the loaning, group saving, and micro-entrepreneurship
generation of enough interest in individuals within activities (BRLPS 2015b). TERI identified the
Dhamdaha block as a suitable area for intervention.
Figure 1: Innovation is the key in BoP segments
No universal solution exists
Low income from Creative low-cost
$3–$5 a day market-based
solutions for
Subsistence from energy access
$1–$3 a day
Bridging the gap
Sustainable Scalable
Extreme poverty
below $1 a day
Segmenting the BoP Market (Based on Rangan et al. 2011)
10 LaBL Publication
business opportunity.
BoP is often misinterpreted as an underserved
market when no ‘ready to go’ market actually The overall market creation process can be
exists there. To operate successfully in the BoP, divided into three stages, namely, seeding, base
enterprises need to focus on unique products and building, and growth and consolidation (Simanis
services. In addition, creation of a local channel 2010). The paper adopts these stages as a broad
using unconventional partnerships with grassroots framework for market creation and contextualizes
institutions, government, and community-based them to the TERI’s intervention in partnership
institutions for service delivery or product sales is with JEEViKA and Department for International
essential. Further, enabling access to products and Development (DFID) that has triggered market
services through innovative financing mechanisms creation and subsequently introduced enterprise-
or through customized channels to ensure physical based delivery model for energy access in
availability of product/service for end user are vital Purnia, Bihar.
elements (Hammond et al. 2007). Hart and Prahlad
(2013) describe the transition of BoP into an active Purnia is one of the most underdeveloped and
market as a development activity and clarify that it is flood-prone districts of Bihar. Of the 89 per cent
not about serving an existing market more efficiently. of its households, only 8 per cent have access to
electricity. Owing to its massive poverty, the district
Creating a market in the BoP segment requires is among JEEViKA’s primary areas of focus and has
interest to be generated on both the demand and a network of over 40,000 women SHGs or self-help
supply side. On the demand side, the creation of a groups (BRLPS 2015a). With each group having an
market entails value creation and embedding specific average membership of 10–20 women, JEEViKA
products/services/technology solutions into the engages over 0.5 million women in various micro-
lives of end users. On the supply side, it involves the loaning, group saving, and micro-entrepreneurship
generation of enough interest in individuals within activities (BRLPS 2015b). TERI identified the
Dhamdaha block as a suitable area for intervention.
Figure 1: Innovation is the key in BoP segments
No universal solution exists
Low income from Creative low-cost
$3–$5 a day market-based
solutions for
Subsistence from energy access
$1–$3 a day
Bridging the gap
Sustainable Scalable
Extreme poverty
below $1 a day
Segmenting the BoP Market (Based on Rangan et al. 2011)
10 LaBL Publication
