The diamond and jewelry industry is acutely aware of the consumer market potential in India. Depending on whose statistics you use, there are 300 million or more people in India who are classified as “middle class” – that is, they buy cars, they travel, they demand world-class products, and they require international standards for higher education of both genders.

 

India’s middle class equates to the entire population of the U.S. In short, India is the next hot growth market for the jewelry industry – and it is here and now.

 

China, on the other hand, won’t have a 300-million-strong middle class until perhaps 2030. While some jewelers and suppliers already talk about the market potential in China – that’s what it is: potential. Those merchants may be posting sizable sales gains, but the real fun begins in a decade or two.

 

Book: The New Asian Hemisphere

Western minds often have a tough time understanding what is going on in Eastern markets. Recently, the Wall Street Journal reviewed a book, The New Asian Hemisphere, by Kishore Mahbubani (Public Affairs, 314 pages, $26). This book should help American and European merchants understand what is going on in Eastern markets.

 

The following are excerpts from the Wall Street Journal’s review of this book. Jewelers should begin to learn more about the potential in this market.

 

• By 2030, nearly 361 million Chinese will be classified as “middle class,” based on the World Bank’s definition (noted above).

• Across all of Asia, 50 percent of the population will live in the region’s cities, many having moved there in search of better jobs and better lives. This could occur as early as 2010.

• The Asia Pacific region is generally the most optimistic in the world. India, in particular, after Norway, is home to the world’s most upbeat consumers, according to Nielsen Company’s global survey of consumer confidence.

• As a result of this hopefulness and optimistic attitude, many Westerners are well aware that China, India, Singapore, Taiwan, Hong Kong and South Korea – the so-called Asian Tigers – have undergone a modernization process that is raising their standard of living by building on the dynamics of modern capitalism.

• The author, who is the dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore and a former senior diplomat, argues that people in the Asian region are shifting the way they view themselves: they understand that they could wield considerable force in the global economy over the next decade or two. This shifting view will have profound effects on Asia’s approach to the rest of the world, and, just as important, on the world’s approach to Asia.

• Mahbubani says that the Asian regions realized that their growth in the global economy is dependent on their adapting the seven pillars of Western wisdom: free-market economics, meritocracy, pragmatism, a culture of peace, the rule of law, an emphasis on education and a willingness to pursue advances in science and technology.

• The author admits, however, that “old habits die hard.” While Singapore may be among the world’s least corrupt countries, its neighbors can’t make the same claim. Too many Asian elites wish to preserve the traditional system of inequality, but they know that it is impossible to build a modern economy and modern society without a modern rule of law.

• Mahbubani introduces some stresses into his book. He suggests that the West – including the U.S. and Europe – should be cheering on Asia. But, in fact, they have been the main opponents to trade liberalization. They also practice protectionism. In other words, they aren’t allowing the Asia-Pacific region unrestricted access to economic growth.

• In order to help build Asia, Western powers should consider ceding some of their control of the International Monetary Fund and the United Nations Security Council. As the West loses the global pre-eminence that it has enjoyed for over a century, its approach to rising Asian powers must change, argues the author.

The Wall Street Journal suggests that this book should be read by presidential nominees and U.S. congressmen. We think it should also be read by Westerners who want a credible Easterner’s point of view of the next up-and-coming economic powerhouse in the world.