A 2004 report from Goldman Sachs notes that the Chinese represents the third largest customer base for the luxury goods industry. The Chinese accounted for an estimated 12 percent of the global luxury goods sales in 2004 with 2 percent deriving from local spending in China and 10 percent from overseas Chinese travelers including Hong Kong.

By 2010, the Chinese luxury consumers could account for 23 percent of industry sales, and by 2015, with an estimated 29 percent of sales, they could become as important as their Japanese counterparts. The Japanese currently accounts for approximately 41 percent of global sales.

Many global luxury goods firms are attracted by the rapid expanding Chinese customer base and invest significantly in opening multiple stores and spend heavily on marketing in China. For example, Giorgio Armani plans to open 20-30 new stores in China by 2008.