Explain global wealth and power inequalities. What are the special challenges of serving the "bottom of the pyramid" sector?

The global wealth is the sum of all the financial and non financial assets less the debts owned by individuals across the globe, while the power inequality is the disparity arose due to this imbalance of global wealth. A lot of efforts by different companies have been made to serve the lowest sector of the wealth inequality pyramid, but is faced by challenges as profitability, determining willingness to pay and effective and targeted marketing.

Explanation:

Global wealth is a macroeconomics term which is defined as the total value of all  the financial and non-financial assets  less the debts owned by individuals in all the countries across the globe.

Power inequality is defined as an imbalance between different members of society in response to their share in the economy. This is a continuous cycle of increased income for a specific group of people across the globe.

For a comparison it is evident that  the poorest 70% of the world's population holds only 2.7% of the total global wealth, while only 0.7% of the richest people hold a massive 45.9% of the total global wealth (Reference: Credit Suisse Global Wealth Report 2017).

This inequality is certainly evident in countries and is resulting in a lot of socio-economic problems across the globe.

This inequality can also be shown in the form of a pyramid where the richest people, although very small in numbers are at the top while the bottom of the pyramid is made of the poorest people. Companies have tried to be more focused in uplifting this group of people for decades, however, there are specific challenges for attaining this. A few of them are as below.

1. Profitability: One of the major concern is the ratio of profitability in the buying range of a bottom of the pyramid customer. This is also coupled with the difficulty faced in developing the products with such low manufacturing costs.

2. Determining willingness to pay: The major share of business is run on the concept of credit. However, it is very difficult to correctly identify the true ability and willingness to pay for the members of the bottom of the pyramid sector.

3. Effective & Targeted  Marketing Campaign . Due to poverty, coupled with low civic awareness and knowledge leads to difficult understanding of products. This is coupled in such a way that the internal help is always required for creating awareness about a specific product among the bottom of the pyramid.

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