Reaching the rich world’s poorest consumers

Abstract

The article discusses how several companies have worked with the French non-profit organization Action Tank to develop social businesses aimed at serving the needs of poor people. Eye care firm Essilor established a company called Optique Solidaire that provides high-quality eyeglasses to poor pensioners at a dramatically reduced cost. Other participants include car maker Renault and construction firm Bouygues. The authors describe elements of the business model employed, how companies benefit from it, and what distinguishes social businesses from low-cost businesses.