Challenges rise for luxury brands

Pressure is mounting for luxury companies to find their niche and establish their credibility, as the market continues to grow in sophistication and witnesses an influx of new businesses entering the sector, the latest KPMG China report revealed.

"The challenges facing new entrants to China's luxury market are intensifying. The market has become more crowded, as indicated by the rising number of luxury brands recognized by consumers in China," said Nick Debnam, partner in charge of consumer markets with KPMG China.

The report by KPMG, the global network of professional firms providing audit, tax and advisory services, said that on average, survey participants this year recognized 64 different luxury brands compared to 52 in the 2006 survey.