Destination China

Luxury retailers are converging on China like bees to a honey pot. Dolce e Gabbana has revealed that the label is expanding there under a wholly owned subsidiary. This year, the company opened boutiques in Beijing and Shanghai and will open a second store in Hong Kong in December. In a similar vein, Italian brand Valentino has just announced its plans to expand in the Chinese market after having chosen Hangzhou in the Zhejiang province for its first store there. The boutique will offer the brands Valentino, R.E.D. and Garavani Valentino for men and women, as well as watches, eyewear and fragrances. Within the next twelve months, the company will open another six stores in the country. Before the end of this year, a Valentino store will open in Beijing , said chief executive Matteo Marzotto. Stores in Shanghai , Tiajin and a second store in Beijing will follow next year.

China is the fastest growing emerging market in terms of luxury goods. Current, it only has 6 percent of that market but both analysts and purveyors of luxury goods anticipate substantial gains to be had as Chinese wealth increases. The number of Chinese millionaires, currently estimated at 235,000, is to grow at an annual rate of 12 percent, says Eric Gerritse of MeesPierson. The female population of China is a rapidly growing customer base for luxury retailers. In 1998, 25 percent of luxury customers were female. In 2003, that percentage had increased to 44 percent.