The following excerpts come from The $10 Trillion Prize published by Harvard Business Review Press.

The rise of China and India, and the growing impact of these countries on the global economy, is a story that has been written about extensively. Historians, economists, and business professors, among others, have all sought to explain the extraordinary emergence of the worlds most populous nations in a library of books that have tumbled out of publishing houses over the past ten years. So why publish yet another book on China and India? The answer is this: no book has truly focused on the vital force that will transform these countries and their economies in the decade aheadnamely, the new consumersor shown how companies can capitalize on the new opportunities. No one has written clearly about these consumers hopes, dreams, and ambitions. No one has closed the loop on income growth, education, jobs, and the net expansion of markets for food, apparel, housing, transportation, health care, education, and financial services. The complete picturewith all the detail of the rural and urban communities, the rich and the poor, and the burgeoning middle classhas yet to be drawn. This book aims to fill the gap. New Consumers, New Opportunities Consumers in India and China are the new kings and queens of the global economy. They have fastchanging tastes and appetites, and they are transforming the world with their consumption. Consider the following facts, which provide a snapshot of what the opportunity is for the rest of this decade:

There will be nearly one billion middle-class consumerssome 320 million householdsin China and India by 2020. They are demanding more, better, now for themselves and their children. The number of billionaires is rising: in 2001, China had 1 billionaire and India had 4; today, there are 115 billionaires in China and 55 in India. The two markets will give rise to some of the worlds most powerful companies. China already has three of the worlds top ten companies, ranked by market value: PetroChina, Chinas ICBC bank, and China Mobile. Some eighty-three million Chinese and fifty-four million Indians will become college graduates over the next ten years. Over the same period, the United States will see just thirty million new college graduates. The rapid growth in both China and India has led to enormous growth in the consumption of the building blocks of householdsfrom copper to corn to chicken to coalplus almost every other ingredient important to better lives, particularly a diet higher in protein but also vertical dwellings with modern conveniences and vehicles of transportation of all kinds.

We estimate that the consumer markets of China and India will triple over the current decade and amount to $10 trillion annually by the year 2020. It is a once-in-a-lifetime prize. But how can it be won? That is the purpose of this book. The $10 Trillion Prize presents a manual for growth: the inside track to achieving success in China and Indiaand, as a consequence, the rest of the worldby captivating, and therefore winning, the hearts and minds of the new consumers. After reading this book, leaders at companies with global ambitions will know how to segment, listen to, and engage the increasingly affluent consumers in China and India. It is easy to be swayed by the sheer number of consumers in the two countries and to think that success is just a matter of selling to a small fraction of them. But averages can be deceptive, and off-the-shelf statistics and generalized data can lead companies into making bad decisions and expensive mistakes. We want readers to take the following steps in engaging the new markets in China and India:

Meet consumers up close and personal: understand how they make decisions about goods and how their hopes for the future translate into astounding market growth in food, health care, education, and transport. Understand the size, shape, and timing of the opportunity. Segment the market according to income and geographyespecially the urban and rural divide. See how the application of special consumption curves can predict the future. Build the paisa vasool approachthe perfect mix of affordability, design, and featuresinto your global tool kit. Engineer every product and service with this approach. Make value for money the standard in Chinese, Indian, and Western markets. Hear how market leaders are shaping their future with a ten-by-ten strategy: ten times as big in ten years. Systematically understand risk and risk reduction in the worlds most challenging markets. Use the book to create what we call the triple crown: a win in China, a win in India, and a win at home. See how Chinese and Indian consumers will shape a new future for the worldand how they will do so with drama, emotion, conflict, and hard choices. Understand the differences and similarities between China and India: one child versus five children; autocracy versus democracy; speed and authority versus choice; massive investment with few market safeguards versus returns guarded by capital markets; state capitalists versus private entrepreneurs. Ask questions that will unlock spectacular growth and organizational resolve in China and India.

The Research: Client Work, Interviews, and Data

The $10 Trillion Prize is based on extensive on-the-ground experience, one-on-one interviews with hundreds of consumers, and access to business leaders and entrepreneurs in China and India. Our company, The Boston Consulting Group (BCG), has a long history of advising clients and governments in these countries. In China, we began work in the 1980s, opened an office in Hong Kong in 1991, and were the first multinational consulting company to be authorized to conduct business in mainland China, establishing an office in Shanghai in 1993. Our office in Beijing opened in 2001. In India, we opened our Mumbai office in 1996, after nearly a decade of work in the country. The New Delhi office opened its doors in 2000. This year, we opened our third Indian office, in Chennai. As an author team, we are veterans of these markets. Together, we have more than fifty years of onthe-ground experience in China and India, stretching back to the 1980s. We have advised major Chinese and Indian companies as well as multinationals seeking to enter these countries and build their businesses there. Our clientssome of the worlds largest consumer companieshave turned to us for advice on innovation, market access, distribution, and consumer understanding. Throughout The $10 Trillion Prize, we draw on a valuable resource: the proprietary consumer-tracking studies produced by BCGs Center for Consumer and Customer Insight. Across Asia, the center has conducted some five hundred consumer insight projects over the past ten years. The flagship is an annual global consumer sentiment survey of twenty-four thousand people in twenty-one countries. We also build on the insights drawn from our prior work on consumer needs, including research that we published in the books Trading Up: The New American Luxury (2003); Treasure Hunt: Inside the Mind of the New Consumer (2006); and Women Want More: How to Capture Your Share of the Worlds Largest, Fastest-Growing Market (2010). In Trading Up, for example, we identified the trend among middle-class Americans to buy more expensive goods in a handful of product categories and to become expert in the art of consumption looking for technical, functional, and emotional benefits in products and services. Over the past two years, we have traveled throughout China and India and seen many parallels. Chinese and Indian consumers are also hungry for product informationthey want to understand the back stories of products and their creators. They are allocating their budgets to achieve a visible level of affluence in many categories of goods and cutting corners in others to achieve necessary savings. The Chinese and Indian consumers are ambitious and dream big. They understand technical and functional differences and love to ladder up emotionally. They love to tell their friends about their shopping adventures and to celebrate their purchases. The $10 Trillion Prize is based on both qualitative and quantitative consumer research. We studied Chinese and Indian consumers in their homes, meeting their families and discussing their current and anticipated lifestyles. We probed them about their diets, their purchases, their histories, and their hopes and dreams. Readers will get to know the new generation of consumers, including the brilliant student we call Mr. Number 19 because of his ranking on the highly competitive entrance exam to the Indian Institutes of Technology; the determined thirty-three-year-old woman from Shanghai who already makes more than fifty times as much as her parents did and still wants more; and the fiftynine-year-old rural Chinese woman with three years of formal education who has built her home brickby-brick and constructed a garage for the car she would like to buy one day.

Readers will also get to know the new generation of corporate titansChinese and Indian entrepreneurs who are thriving by meeting the needs of the newly affluent consumersincluding Frank Ning, who runs Cofco, one of the worlds biggest food processing companies; Adi Godrej, chairman of the Godrej Group, one of Indias biggest consumer goods conglomerates; and Anand Mahindra, vice chairman and managing director of Mahindra & Mahindra, Indias major manufacturer of tractors and low-costand now globalsport utility vehicles.