A: Domestic Consumption Demand

At present, China government is actively establishing policies to promote domestic demand caused by the immense potential of the China market. And trying to achieve the economic growth with transformation from the solely export trade to the integration of export as well as domestic demand. Considering the new period of growth of China's economy, the endogeneity and stability of the economic growth will be strengthened by the increasing market proportion. Moreover, the domestic demand will be developed, the consumption policy and system and environment will be further improved as well. These factors will lead to the great potential for the consumption growth. Just as Jonathan Garner, the Managing Director & Global coordinator of China research of Credit Suisse First Boston, argues in his new book " The Rise of the Chinese Consumer: Theory and Evidence", that by 2014 the Chinese consumer will likely have displaced the US consumer as the engine of growth in the global economy with 11% world market proportion. And China will have a rapidly developing consumer market in the next decade. Government policy is rebalancing demand within the Chinese economy from investment spending to consumption spending. Strong trend economic growth over the cycle, a rise in the consumption to GDP ratio and steady exchange rate appreciation will likely generate an 18 per cent compound annual growth rate. 

B: The World’s third-largest Luxury Market

According to a report released in September 2005 by Ernst & Young (E&Y), China following Japan and the United States has become the world’s third-largest consumer of high-end fashions, accessories and other luxury goods. The report, entitled China: The New Lap of Luxury, says    the Chinese luxury market currently generates more than US$2 billion in sales a year. And it is expected to grow 20% annually; also China achieved the 20% sales contribution to the world luxury consumption each year.
  In the next few years, the Compound Annual Growth Rate (CAGR) of China's luxury consumption will increase 25% annually. Meanwhile, China will achieve 19% of the global market in 2008, By 2015, Chinese consumers could be as influential as the Japanese and account for 29% of all global luxury goods purchases.  
  The Comité Colbert also predicts that China will become the largest consumer of luxury goods in the 2011, among those high-end fashionable goods, top brand Garments would be the most favorable selection for the consumers which accounts for 70% of the total consumption.