The company's franchisees will open another relatively larger boutique in Beijing and two in Shanghai in the next year. Because of high duties, prices in China are almost a third higher than in already expensive Hong Kong. But duties are expected to drop when China joins the World Trade Organization, expected by later this year. The Chinese could become very fond of luxury goods. After all, when they buy Cartier jewelry, they're buying a piece of French tradition.
China is a very old civilization, and people appreciate that sort of thing.
On the other hand, Carter is required to franchise its stores to Chinese companies and can't own them outright. That won't change after China joins the trade organization, Cartier says. Inc. All Rights Reserved. All rights reserved.