China may overtake U.S. to be world's No. 2 luxury goods market

China may rank the world’s second-largest market for luxury goods in 2008, overtaking the U.S. after Japan which is the world’s NO. 1 luxury goods market at present, Shanghai Daily cited industry insiders as saying.

"There is an explosion of demand for luxury goods in China with some people's soaring wealth," said Wang Depei, vice chairman of the China Economic System Reform Research Association at the First Luxury Brands Forum in Shanghai.

With a 12% share of the global luxury goods market, China was the third-largest consumer of luxury goods in 2007 along with its double-digit growth rate in recent years.

It is also expected that China would probably become the world’s largest consumer of luxury goods in 2015. Therefore, many foreign luxury goods manufacturers are striving to establish or consolidate their foothold in the country.