ARMANI, Louis Vuitton, Cartier: The globe's luxury goods purveyors are plowing millions of dollars into China, salivating over the potential of one of the hottest new countries to do business.

Considered a commercial backwater 15 years ago, only the mightiest of corporate giants such as Coca-Cola, Volkswagen and Unilever dared to battle for consumers' hearts in China.

Today China has embraced market economy. Its 1.3 billion people with growing income have become the allure of luxury brands that hold up the illusory promise of beauty, wealth and power.

"Chinese most generally want a stamp of approval, a badge that says that I'm moving forward in life - whether it's a car, a nicer fridge or new clothes," said Julien Lapka, a planning director at advertising agency Saatchi and Saatchi.

As if that marketing strategy were engraved in stone, managers of brands synonymous with wealth have stormed Chinese cities with revolutionary-like euphoria, building flashy stores on the expectations that if it's expensive it will sell.

Investment bank Goldman Sachs estimates the Chinese luxury goods market is already turning over billions of dollars and in 10 years' time it will be one of the world's biggest.

On Shanghai's Nanjing Road, the golden mile of China's most cosmopolitan city, the chic and the cool that usually grace Paris and London catwalks have opened sumptuous, sexy boutiques selling the latest pret-a-porte couture.

No matter whether it's Gucci or Versace - all are as eager to capture the pocket books of China's increasingly wealthy jet-setting crowd that according to the China Brand Strategy Association is aged between 30 and 40.

The association claims that some 175 million or 13.5 percent of Chinese can afford to purchase a variety of luxury brands, most of whom are buyers of personal accessories like cosmetics, watches, wallet and jewels.

This relatively flush group earns as much as 240,000 yuan (US$30,000) a year and has between 300,000 and 500,000 in savings. By 2010 their numbers are expected to increase to 250 million.

"The luxury goods market in China has entered a period of stable growth, and I expect it will grow at a speed of 20 percent annually in the coming five years," said Yang Qingshan, secretary general of the association.

And while customers in China are not as sophisticated as in other Asian countries, the newness and freshness of the market makes shoppers particularly "open-minded" and gives companies greater creative opportunity, said Chien.

Editor: Wing