Unilever's Business in India's Subsistence Economies

Abstract

This paper argues that corporate efforts to serve subsistence economies must be integrated rather than disparate. Focusing on the efforts of Unilever's Indian subsidiary, the paper draws out four key lessons for businesses in low-income regions – availability, branding, convergence, and development. Four Unilever case studies are used to demonstrate how Unilever built on existing strengths, integrating diverse interventions to create Shakti, a unique pro-poor business model. The paper then analyzes the impact of the business intervention on the poor, calling for a wider convergence and cooperation between the private and the development sectors.

Citation

Rajan, R. (2007), "Unilever's Business in India's Subsistence Economies", Rosa, J.A. and Viswanathan, M. (Ed.) Product and Market Development for Subsistence Marketplaces (Advances in International Management, Vol. 20), Emerald Group Publishing Limited, Leeds, pp. 259-277. https://doi.org/10.1016/S1571-5027(07)20011-7