If product is made in a way that it is suitable to reach every class, the market that it would get will be of double the size. This was the message of Tata Group Chairman Shri Ratan Tata in his speech at IIM Ahmedabad today.
Speaking at a conference on challenges to inclusive growth in the emerging economies, organized at IIM (A) in memory of late Prof C K Prahlad, Mr. Tata said India is …normally referred to as the consuming market of 253 million people. This is because Industry by and large is aiming for the tip of the pyramid and neglecting the bottom of pyramid.
Tata then called for innovation and technology measures to allow poor people, described as the Bottom of Pyramid (BOP), better access to new products and services.
“Innovation or technology can be used for redefining the products, so that we can address the base of pyramid,” Tata said .
“If you do that then consumer market we are talking about is about 500 to 600 million people, which is phenomenally large,” he added.
Tata dubbed some of the group projects like Tata Nano, Tata Ace, a commercial vehicle, Ginger chain of hotels and water purification activities undertaken by the group as few independent initiatives.
Tata cited cellphones as a good example of technology penetrating across the broader section of the society. The country today boasts of close to 700 million odd subscribers, after 10 years of innovation in the sector.