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 present at every level of the consumer pyramid. A must-read for every entrepreneur 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 realize 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 discerning consumers, no company can shape its future without them. A brilliant 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 explosive 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 glimpse 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 customer, 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 multinational 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 quantitative 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’Oréal
THE $10 TRILLION PRIZE
Captivating the Newly Affluent in China and India
MICHAEL J. SILVERSTEIN | ABHEEK SINGHI
CAROL LIAO | DAVID MICHAEL
with Simon Targett
HARVARD BUSINESS REVIEW PRESS
BOSTON, MASSACHUSETTS
Copyright 2012 The Boston Consulting Group, Inc.
All rights reserved
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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)
1. Consumers—China. 2. Consumers—India. 3. Affluent consumers—China. 4. Affluent consumers—India. 5. Consumers—China—Attitudes. 6. Consumers—India—Attitudes. I. Silverstein, Michael J. II. Title: Ten trillion dollar prize.
HC430.C6.A13 2012
658.8’40951—dc23
2012015049
To the many kind, generous, passionate, driven Chinese and Indians who honored us by sharing their beliefs about their future and the place of China and India in the world of 2020
CONTENTS
Preface
ONE Consumption in China and India
The Dawn of a Golden Age
Part I THE RISE OF THE NEW CONSUMER IN CHINA AND INDIA
TWO The New Revolutionaries
The Rise of the Middle Classes
