Today's consumer is detail-oriented and concerned about accessories, skirt lengths and fabrics. While China's big cities have the largest number of affluent consumers, major cities such as Shanghai and Beijing are experiencing a saturation of some products and brands. International labels are quickly moving into smaller cities as well. The drop in duty on imported goods over the past two years has aided foreign retailers. Today the retail price difference for European labels between China and other international cities is not so great, says Linzer.
Many foreign brands manufacture their goods in China, avoiding duties entirely.
Home to more than half of the world's population, wise merchants are taking advantage of Asia's downturn in economic fortunes to establish a foundation for the future.