• Reuters, Wednesday, August 4, 2010 10:51 AM

Look out, Gucci, Armani and Prada. Here comes "Made in China."

Melanie Lee reports Warren Buffett, who touts Chinese suit maker Trands in a 2007 video, may not be the only one who thinks that the world is ready for Chinese luxury goods. Sales of luxury goods in China grew 12% in 2009 to $9.6 billion, accounting for 27.5% of the global market, according to Bain & Co., and it is projected to become the No. 1 market in the world within five years. Exporting that growth though domestic brands will be a more daunting task.

"In the short term, I don't think any Chinese luxury brands can compete with the international ones in terms of marketing, brand culture, design and quality," says JLM Pacific Epoch analyst Marie Jiang. Indeed, Chinese consumers often prefer international names such as France's LVMH, Louis Vuitton or Hermes.

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