displays the GDP and the growth rate of
GDP in China between 2006 and 2011. The GDP
continuously ascended from 21631.4 billion
RMB in 2006 to 47156.4 billion RMB in2011.
Regarding to its annual growth rate, it kept growing
up by more than 10% annually before 2007
and it maintained the significant growth rate of
9.6% even in 2008, when global financial crisis
hit the global economy. The powerful momentum
continued till now and exceeded all the other
countries, which made China an investment
‘wonderland’ for foreign investors. As a result, it
provides a sustainable growth environment for
local luxury companies. Furthermore, the richer
the country is, the more disposable income citizens
have, indicating that Chinese consumers
have a stronger purchasing power and have a
stronger ability to purchase high-end luxury
goods (Dang, Wan 2011)