<strong>Roland</strong> <strong>Berger</strong> Strategy Consultants Low-income <strong>consumers</strong> can also be attracted by <strong>new</strong> service portfolios. The Mexican cement manufacturer Cemex, for instance, sells a versatile support package <strong>to</strong> low-income families <strong>to</strong> help them build homes inexpensively. For just USD 14 a week, the company provides inspections, materials warehousing, advice from professional architects and the required cement products. Unilever's African portfolio includes both affordable products and training services. It offers low-cost food items, water-thrifty washing powders and grooming products that suit local tastes. In addition, it provides professional training <strong>to</strong> African entrepreneurs. In 2011, the company opened an academy in Johannesburg that each year will train 5,000 hairdressers who plan <strong>to</strong> open their own salons. The academy also functions as a forum for testing <strong>new</strong> products, business models and distribution methods. In some areas, <strong>new</strong> methods of delivery have emerged, such as medical services provided <strong>to</strong> poor rural communities by mobile clinics. The Sanjeevan Mobile Clinic operating in parts of India resembles a large bus. But inside it contains a fully equipped doc<strong>to</strong>r's office <strong>with</strong> X-ray, ultrasound, mammography or electrocardiogram machines, a second treatment room and a small darkroom <strong>to</strong> develop X-rays. It even has its own genera<strong>to</strong>r so it can operate independently of the local power grid. Each mobile clinic can service hundreds of temporary treatment sites. In one year, for example, a single such vehicle traveling across the Uttarakhand Province in northern India set up more than 800 medical camps, helping some 60,000 patients. Siemens has equipped 18 of these mobile surgeries over the last 7 years. Urbanization Since 2008, over half the world's population has been living in cities. Enterprising companies will discover that urban landscapes offer many <strong>new</strong> business prospects. Supply chains, trade, transportation and Internet connections are expanding, often rapidly, <strong>to</strong> serve ever more city dwellers. f5 The scale of this rapid change is startling: Some 200,000 people will move <strong>to</strong> cities every day through 2030. Emerging <strong>market</strong>s will see most of this migration. Between 2010 and 2030, the global share of people inhabiting cities will climb from 45% <strong>to</strong> 55%. Most will be in the developing world. Thus, 3.9 billion – or 80% – of 4.9 billion city dwellers worldwide will live in <strong>emerging</strong> and developing countries as the world's <strong>to</strong>tal urban population grows by more than 1.3 billion. Looking at specific regions, Latin America will have the highest share of urban residents as its cities grow <strong>to</strong> include 80% of the <strong>to</strong>tal population by 2030. The share of urban residents in Africa will increase from 39% <strong>to</strong> 48%, in India from 31% <strong>to</strong> 40%, in China from 49% <strong>to</strong> 69%, and in the rest of Asia from 44% <strong>to</strong> 56%. By 2025, China will have no fewer than 139 cities <strong>with</strong> over a million inhabitants, the largest number of such agglomerations of any country in the world. Urban house and household sizes are also changing. In India, for instance, per household floor space has doubled every 14 years <strong>to</strong> its current level of 31.5 m 2 . This is still two and a half times less than China's 85 m 2 . According <strong>to</strong> projections by Credit Suisse, India must construct three million houses and China five million houses every year through 2030 <strong>to</strong> accommodate future population growth. Although global sanitary conditions have improved considerably over the past several decades, 2.6 billion people still have no access <strong>to</strong> <strong>to</strong>ilets and 70% live in cities <strong>with</strong>out proper sanitation facilities. Lack of sanitation causes environmental pollution, social problems, unsafe surroundings and substantially more potential F4 In several Focus 20 countries, a large share of the population needs better access <strong>to</strong> sanitary facilities Percentage of the urban population that currently has no access <strong>to</strong> sanitary facilities (%) Nigeria India China Indonesia 64 46 42 37 Source: Euromoni<strong>to</strong>r
Study 13 F5 By 2025, 80% of cities <strong>with</strong> more than a million inhabitants will be outside the developed world Number of urban agglomerations <strong>with</strong> over a million inhabitants, 2025 50 57 74 81 305 China India US Nigeria 139 54 45 21 Source: UN World Urbanization Prospects: The 2011 Revision
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