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MEET YOUR NEW
Y GLOBAL CONSUMER
ou’ve heard of the burgeoning consumer
markets in China and India that are
driving the world economy. But do you
know enough about these new consumers to
convert them into customers?
Do you know that:
• There will be nearly one billion middle-class
consumers in China and India within the
next ten years?
• More than 135 million Chinese and Indians
will graduate from college in this timeframe,
compared to just 30 million in the United
States?
• By 2020, 68 percent of Chinese households
and 57 percent of Indian households will be
in the middle and upper classes?
• The number of billionaires in China has grown
from 1 to 115 in the past decade alone?
In The $10 Trillion Prize, bestselling author
Michael}. Silverstein and his The Boston
Consulting Group colleagues in China and India
provide the first comprehensive profile of the
emerging middle class, primed to transform the
global marketplace. Already the world’s biggest
buyers of cars, mobile phones, appliances, and
more, these consumers are eager for more
products and services. In fact, it’s estimated that
by 2020, consumers in China and India will
generate more than $10 trillion of total annual
revenue for companies selling to them.
This book explains who these consumers
are—what they buy and why, how they think
and shop, and how their needs and tastes are
changing. It takes you into their lives sc
can better understand what they want;
they’re looking for.
(Continued c 1 ,'i' 'i 1
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ADVANCE PRAISE FOR THE $10 TRILLION PRIZE
“The authors have combined a deep understanding of India and China with
sharp insights to create a book that is a must-read for anyone operating in
these countries. It reflects the rapid changes occurring and how critical it is
to keep in step.”
—Achal Agarwal, President, Asia Pacific Region,
Kimberly-Clark Corporation
“This book provides, for the first time, a detailed and real-life portrait of the
consumers in China and India—and how these consumers will be the engine
of growth. Extremely well researched, truly insightful, and highly readable.
The authors use their experience in China and India to offer an insightful and
pragmatic perspective on winning in these dynamic markets. A must-read
for global CEOs who want to win the $10 trillion prize.”
—-Jamshyd N. Godrej, Chairman and Managing Director,
Godrej & Boyce Mfg. Co. Ltd.
“This thoughtful book goes beyond a ‘flavor of the month’ approach to India
and China and seriously analyzes the mind-boggling opportunities they pres¬
ent at every level of the consumer pyramid. A must-read for every entrepre¬
neur and corporation with a global world view.”
—Anand Mahindra, Vice Chairman and Managing Director,
Mahindra & Mahindra
“This landmark book documents the rapid growth in consumer spending in
China and India over the next ten years. The authors bring to life the drama
and wonder of people going from poverty to middle class. They tell their
stories with richness, power, and charm. It is an analytic tour de force and a
rags-to-riches tale.”
—-Jim O’Neill, Chairman, Goldman Sachs Asset Management
“The India and China opportunity is well chronicled. What makes The
$10 Trillion Prize different is the consumer lens through which it looks at the
opportunity. It provides a fascinating perspective on the differences between
the Indian and Chinese consumer and provides a framework for how to real¬
ize the massive potential these countries offer.”
—Nitin Paranjpe, CEO, Hindustan Unilever
“Decisively, this is the most realistic and powerful portrayal of Chinese and
Indian consumers. Together, as the world’s largest, most influential and dis¬
cerning consumers, no company can shape its future without them. A bril¬
liant guide to unlocking spectacular growth.”
—Deepak Parekh, Chairman, HDFC
“A tour de force of insight into Chinese and Indian consumers, told via many
compelling stories. All business is local, and a firsthand understanding of
these consumer markets is essential for any business leader in future. This
book delivers it.”
—John A. Quelch CBE, Distinguished Professor of International
Management, Vice President and Dean, CEIBS
"A must-read for consumer companies seeking to capitalize on the explo¬
sive growth in India and China, but also a how-to manual for jump-starting
growth in more mature, developed markets.”
—Irene Rosenfeld, Chairman and CEO, Kraft Foods
“Great insights into the aspirations and driving forces behind the all-important
consumers of China and India. A thought-provoking and entertaining glim¬
pse into how these consumers will redefine the future.”
—Jerry Stritzke, President and COO, Coach
“A vivid view of the lives of consumers in China and India, combining solid
research and strategic business insights. All leaders of large organizations in
Asia, local or expat, should read this book to gain a new perspective of cus¬
tomer, market, and strategy.”
—Xudong Yin, Chairman, Beijing Novartis Pharma Co Ltd.
“By the end of the decade, there will be more than one billion middle-class
consumers in China and India. This is a historical opportunity for multina¬
tional companies, but also quite a challenge for many of them. Thanks to
their solid experience within The Boston Consulting Group, the authors of
The $10 Trillion Prize offer a unique consumer insight that is both quantita¬
tive and qualitative, economic and sociologic, global and intimate. They also
draw very concrete directions to answer the needs, aspirations, ambitions,
and demands of this new generation of consumers. By doing so, they play
their consulting role in a generous and innovative way that should be very
precious to many leaders worldwide.”
—Jochen Zaumseil, Executive Vice President, Asia Pacific, L’Oreal
THE
$10
TRILLION
PRIZE
T$E
$10
TRILLION
Captivating
the Newly Affluent
in China and India
MICHAEL J. SILVERSTEIN I ABHEEK SINGHI
CAROL LIAO I DAVID MICHAEL
with Simon Targett
HARVARD BUSINESS REVIEW PRESS
BOSTON, MASSACHUSETTS
SKOKIE PUBLIC
LIBRARY
Copyright 2012 The Boston Consulting Group, Inc.
All rights reserved
Printed in the United States of America
10 987654321
No part of this publication may be reproduced, stored in or introduced into a retrieval system, or
transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or
otherwise), without the prior permission of the publisher. Requests for permission should be directed
to [email protected], or mailed to Permissions, Harvard Business School Publishing,
60 Harvard Way, Boston, Massachusetts 02163.
Library of Congress Cataloging-in-Publication Data
The $ 10 trillion prize : captivating the newly affluent in China and India / Michael Silverstein ... [et al.].
p. cm.
Includes bibliographical references.
ISBN 978-1-4221-8705-0 (alk. paper)
I. Consumers—China. 2. Consumers—India. 3. Affluent consumers—China. 4. Affluent consumers—
India. 5. Consumers—China—Attitudes. 6. Consumers—India—Attitudes. I. Silverstein, MichaelJ.
II. Title: Ten trillion dollar prize.
HC430.C6.A13 2012
658.8 40951—dc23
2012015049
The paper used in this publication meets the requirements of the American National
Standard for Permanence of Paper for Publications and Documents in Libraries and
Archives Z39.48-1992.
