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The Digital IQ of Prestige Brands in ChinaAn exclusive report from L2 and Labbrand The massive potential for retail businesses in China is no surprise to anyoneleast of all prestige brands. After years of annual double-digit growth, Chinas booming economy has left tens of millions of consumers seeking new ways to spend their disposable income. In 2009, China became the worlds second largest luxury market behind Japan, surpassing the United States. Even though these trends were recognizable at least 20 years ago, many prestige brands are still playing catch-up in this diverse and rapidly changing marketplace. With 384 million internet usersmore than the U. S. and Japan combinedmuch of the competition for customers and brand loyalty will play out online. The investment prestige brands make in their own digital competence could be a deciding factor in their ability to survive and thrive in China, and is likely to become increasingly important as the market matures.

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BEIJING Its the first thing that greets customers as they stream into the new Silk Street market here: a selection of brightly colored North...

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