China becoming huge market for luxury products

France, Britain, Italy and Japan will soon be taken over by China in sales of luxury items. Luxury goods sales in China have consistently outperformed the global market this year. While United States retailers will still sell more of the goods, China should become the world's second biggest market. It is believed sales could top US$300 billion worldwide this year even though economic woes in developed countries have reduced demand for some items, including designer handbags, clothes, jewellery, watches, and champagne. Emerging markets including Brazil, Russia and India are making up for the shortfall in luxury goods sales from formerly wealthy nations where rising prices and mounting insecurity over jobs have reduced demand.