International luxury brands are eyeing the expanding wallets of the hippest and trendiest Chinese as the country is set to become the largest market for luxury goods over the next few years.
Chinese shoppers spend $9 billion US dollars on luxury goods per year, according to the China Market Research Group.
Giants of luxury brands have already flooded into the country's four wealthiest coastal cities -- Beijing, Shanghai, Guangzhou and Shenzhen.
The CEO of the men's luxury clothing br Read more

International luxury brands are eyeing the expanding wallets of the hippest and trendiest Chinese as the country is set to become the largest market for luxury goods over the next few years.
Chinese shoppers spend $9 billion US dollars on luxury goods per year, according to the China Market Research Group.
Giants of luxury brands have already flooded into the country's four wealthiest coastal cities -- Beijing, Shanghai, Guangzhou and Shenzhen.
The CEO of the men's luxury clothing brand, Ermenegildo Zegna, which opened its first shop on Chinese soil 19 years ago, said China has already become his brand's largest market world wide.
"As a matter of fact it has already happened a few years ago just before the crisis when we decided to shift resources from the west to the east in particular in China and other countries like Taiwan and Hong Kong. And I think that was an act of courage. We were right. Because, you know, we are progressing 30 per cent growth every year," said Gildo Zegna, CEO of the Italian family brand.
China, with its double-digit GDP growth rates, is the biggest market for luxury conglomerate LVMH, (Moet Hennessy Louis Vuitton), Hennessy's cognac's and the second largest for Louis Vuitton.
Luxury companies saw flat sales globally during the recent financial crisis, yet almost 90 percent of wealthy Chinese surveyed had purchased a designer handbag between 2008-2009, according to a study by the New York-based market research firm Pao Principle.
Shoppers who fuel the growth of top-end brands in Mainland China average 25 to 35 years old, noted a study by the Boston Consulting Group. The average age of Mercedes Benz buyers in China is 39 years old, 14 years younger than their American counterparts, said the China Market Research Group.
Young consumers believe that the luxury brands feed right into the growing appetite of Chinese women's wealth power and vanity.
"Because things sold by luxury brands have better quality and style. Also, women tend to be more vain, so I think women will buy them in general," said 21-year-old university student Yue Wenyun.
Although some affluent Chinese consumers are filling their closets with the most expensive dresses or suits, many are still hesitant to spend thousands of dollars to make a fashion statement.
"When it comes to clothing, I look for comfort and style. So I don't really care if it's a luxury brand or not. Because for me, for some things (such as cosmetics) I will definitely choose luxury brands, but for other things I think there is no need to splurge." said 34-year-old Wang Shuzhen who works in the retail industry.
Luxury brands that are late to the party may be tempted to mark their territory next to their counterparts in thriving Chinese cities, but the founder of the China Market Research Group says it is time for companies to target shoppers in inland cities.
"Actually this is one of the major mistakes that a lot of luxury companies make. They come to Shanghai and Beijing and Guangzhou and Shenzhen, the four riches cities in China, because they think that's where consumers have the most spending and disposable income. In reality, though, the fastest growth is happening in places like Chengdu, Harbin, Dalian. Consumers there have very high-rising incomes and that is where a lot of the country's new billionaires are. There are almost 80 billionaires in China right now," said Shaun Rein, founder and managing director of the China Market Research Group.
Rein said that Chengdu's luxury consumption is surging at a rate of 20 to 25 percent, while that of Shanghai is at 10 to 15 percent.
Years after its coastal counterparts have glammed up, China's inner cities may now be next in line for a cosmopolitan make-over. Close