Where did all the middle-incomers go?

Welcome back.

And as promised, a weekly contribution. This week I’ve based my entry on an observation/conclusion I made after a discussion with a friend. Enjoy, and as always, please comment.


The observation is the following: ‘In a society like Mozambique, both the cheapest and most expensive products are basically in no need of support what so ever, while the sales of goods commonly labeled as middle class are hardly taking off’.

The really expensive and really cheap products hardly need any help in getting sold: big solar pumps, flat screen TVs, and laptops are being sold to people who need them and who can afford them. On the other hand, the very cheap products need no (or hardly any) support either: small car components, light bulbs or lanterns are all readily available in a multitude of shops, all doing very good business.
In between these two groups of products, we find products that are usually associated with middle class or medium income groups. However, for these products (I’m thinking small black and white TVs or ordinary desktop computers) it seems to be really difficult to find a working product-market-combination.

When looking at the type of products that I’m involved with on a daily basis, the above statement passes the test. In effect, the cheapest of products (solar lanterns and phone chargers) hardly need a push in the form of marketing. People know what these products can and cannot do, plus they can afford them. At the other end, solar water pumps, solar water heaters or big systems for hospitals and schools are equally being sold without any major difficulties: the people who are in need of these products know where to find them, know exactly how much they cost, and are able and willing to pay that amount.
However, the products in between – small solar home systems for lighting and perhaps a radio and b/w tv – are in dire need of market support. In lack of a middle class, the target audience – the people falling in the first category of small and affordable products – first has to be convinced that this is the product that they should be aspiring to buy, after which an even bigger hurdle awaits in the form of actually financing the product. (Regarding the latter, see my entry of February 1st)

Still, who doesn’t like a challenge?

Luc.