Retail sales in China grew rapidly in recent years, and luxury goods were also a boom market, which attracted global brands to enter into the market. From Financial Times:
In the two decades since China opened up its economy, luxury brands have piled into the world’s most populous nation in anticipation of a rapidly expanding flock of affluent spenders. Overall, it has been a good bet. The country’s luxury goods market grew to $6bn by 2004 and is projected to reach $12bn next year, according to consultancy OC&C .
Until recently, most brands had to rely on a crop of middlemen, or brand management companies, that have specialised in navigating China’s complex licensing system and distribution channels. Bally , for example, has long employed Hong Kong-based Fairton, one of the largest such agents, to promote and distribute its products in China. [Full Text]
See also: Rising wages lift China shoppers from BBC News.
[Image: Beijing has moved to boost the domestic economy, from AP photo.]
