Chinese and Indian consumers are expected to spend nearly $64 trillion between 2010 and 2020, said a new study by global research and advisory firm Boston Consulting Group (BCG) on Tuesday, urging Western companies to in order to “capitalise on this opportunity.”
The study, which was released to coincide with the launch of BCG’s new book “The $10 Trillion Prize: Captivating The Newly Affluent In China And India”, forecasted that there would be nearly a billion middle-class consumers in China and India by 2020, while the rising number of Chinese and Indian billionaires would also spur consumer spending in the two nations.
According to BCG, Chinese and Indian consumers will spend $10 trillion in 2020 alone. 36 percent of Chinese and 19 percent of Indians also expect a rise in their discretionary spending over next the 12 months.
“Consumers in India and China are the new kings and queens of the global economy. They have fast-changing tastes and appetites, and they are transforming the world with their consumption,” said BCG.
"We are at a turning point in history where relative wealth will shift from the West to China and India, but absolute wealth, including in the West, should increase," added Michael J. Silverstein, a co-author of the book and a senior partner at BCG, in a press statement.
“It is not a zero-sum game. But Western businesses and individuals wishing to gain their share need to act now.”
“They must choose to be contenders, and remake their dreams for a new world in which China and India play a much larger role – but where the West can still prosper. That's the real lesson of The $10 Trillion Prize,” he said.
Other key findings by the firm include the fact that some 83 million Chinese and 54 million Indians will become college graduates over the next ten years. The U.S. on the other hand will see just 30 million college graduates over the same time period.
The book is intended to serve as a playbook for "captivating" or winning over these newly affluent consumers. BCG says that Western companies need to win over the growing middle class of the two countries via long-term strategies adapted to the future spending habits of these new consumers.
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