Consumer Market Flashpoints: Rising Inequality

Delivery

This report comes in PPT.

Key findings

Rising inequality has direct impact on businesses

Rising inequality has the potential to polarise the market into a high-income consumer segment at the top and a low-income segment at the bottom. It has serious consequences for social stability and economic growth, constraining the consumer base and consumer spending.

The bottom of the pyramid gains importance

The bottom of the pyramid (BoP) is not all about developing countries. In developed markets, the size of the BoP is significant and has in recent years been expanding due to rising income inequality. By addressing the needs and wants of the low-earning consumers companies unleash this untapped potential.

But it’s not a race to the bottom

Rising income inequality reduces the size and purchasing power of the middle class, but doubling down on meeting the changing needs of middle-class consumers can help businesses boost revenues.

A matter of responsibility and reputation

Businesses have a critical role in reducing inequality, not only because of their capacity to drive positive change but also because addressing income inequality positively impacts business reputation and directly benefits the corporate bottom line.

Actions by business to tackle income inequality

Some specific actions for businesses to take to effectively tackle income inequality include adopting fair and inclusive business practices within the workplace, marketplace and supply chain, and developing a comprehensive CSR strategy that aligns with the company’s core values.