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Indonesia's Poor Consumers Help Multinationals Grow Business

July 23, 2012: 12:00 AM EST
Multinational corporations, such as NestléSA, Carrefour SA, and Unilever, have grown their business and revenue even during economic slowdowns by marketing to poor consumers in Indonesia. For example, Nestléhas achieved consistent growth for its Milo brand by selling the chocolate powder in packages that cost about 10 cents, enabling NestléIndonesia to earn more than $1 billion in annual revenue. People who earn less than $4 a day account for around 80 percent of Indonesia’s population and 60 percent of consumer spending, or more than $230 billion in 2010. Similar trends exist in other emerging markets, which are increasingly helping multinational corporations develop strategies they can also implement in Europe and other developed markets currently experiencing economic crises.
ERIC BELLMAN, "Companies Court the Poor's Loyal Pennies", Wall Street Journal, July 23, 2012, © Dow Jones & Company, Inc
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