China has become a large market for luxury goods when it accounts more than 20 percent of global luxury consumption. The demand is still increasing not only among rich people, but also the middle class. It seems that possession of luxury goods is the symbols of status and wealth. People will do whatever they can to obtain a piece of luxury good. The article gives an example about a girl who willing to skip meals to only purchases a piece of Armani Jeans Jacket.

In the news “For U.S. Brands, There’s No Middle in China’s Middle Class”, it discusses the powerful consumer base in China.   The growing market demand helps foreign companies to profit in China. Some of the brands even have higher profits compared to profit in home country.

In my opinion, people are buying for the brand instead of its quality.  They also want to shop for the exclusive service that provides by these brands. Because these luxury brands caught the minds of Chinese consumers, they successfully established their brand in Greater China.  Even though the market is much more competitive, companies still willing to expand their market into China because of the high buying power.

Sources:
Cruz, Julie. “Hugo Boss Plays Catch-Up in China – Businessweek.” Businessweek – Business News, Stock Market & Financial Advice. N.p., 12 Apr. 2012. Web. 19 Nov. 2012. <http://www.businessweek.com/articles/2012-04-12/hugo-boss-plays-catch-up-in-china#r=lr-fst>.

Rein, Shaun. “For U.S. Brands, There’s No Middle in China’s Middle Class – Businessweek.” Businessweek – Business News, Stock Market & Financial Advice. N.p., 16 Apr. 2012. Web. 19 Nov. 2012. <http://www.businessweek.com/articles/2012-04-16/for-u-dot-s-dot-brands-theres-no-middle-in-chinas-middle-class#r=lr-fst>

Picture:
http://www.wantchinatimes.com/newsphoto/2011-12-27/450/C217N0030H_2010%E8%B3%87%E6%96%99%E7%85%A7%E7%89%87_A99F_N71_copy1.JPG