China is a source of profit for the luxury market growth of the globe. Progressively growing affluent consumers in China have acquired a very strong desire for quality things of life. According to Ouyang, more than eighty five percent of luxury brands of the world are available in China market, as its consumers value fashion, self-image and fashion. Since the past five years, as China is under the urbanization process, due to economic growth the per capita income has doubled. Due to demand of wealthy buyers, foreign luxury companies and establishments started expanding; especially the luxury industry is one of the fastest growing sectors.
The president of Luxury Institute, Cai Sujian, watches the rapid economic growth in luxury goods even in second and third tier cities in China. Global awareness and attitude for foreign cultures among urban youth make them attract to the malls of high-end foreign brands. According to the International Business and Economic report, growth rate of luxury sales taking place in second-tier cities, like Chengdu, Shenyang and Hangzhou.
Cai observes that as consumption power of China rises, there is an impact on luxury market of the world and there is no scope for the growth of luxury brands in European markets in the midst of global meltdown, china’s purchasing power reflects its robust growth. Marketing officer, Wang Qingyun predicts that by the end of 2015 China will achieve the sales of 29% of global total luxury goods. So according to many reporters, there is no stop for the consumption of luxury items which will uncontrollably grow in next ten years.