To create an image about their product in the minds of the consumers as a prestigious brand, and scoop high profits, manufacturers' must conceal how they are cutting costs in the manufacturing process, and also mask their sales performance. Goods are manufactured with cheaper threads, no linings, glue instead of stitching, and above all; cheap labor. Handbags that are manufactured for $100USD are sold in the market ranging from $1,200USD.

The growing potential of Chinese luxury market makes it impossible for the global luxury product manufacturers to neglect the country. The growing society of upper class people provides the drive in the middle income society to shop for luxury products. China is gradually developing into a major driver of luxury goods market.

References:

1. http://www.hktdc.com
2. "How luxury lost its luster", Dana Thomas.
3. "Introducing 'Chuppies': Who they are and how they will change the consumer landscape forever", Chris Maloney, 15 June 2009, http://maloneyonmarketing.com
4. http://seekingalpha.com