The luxury market which has so far been dominated by the West is facing stiff competition from China. Top global luxury brands like Burberry and Coach are trying to affirm supremacy in market by pouring funds in multi-billion dollars and function on their own instead of running on a franchise basis.

In the last decade many top brands who made joint ventures with Chinese companies are rolling back and using their won financial and marketing prowess.

In July, Burberry said it would buy all its 50 franchise stores in 30 cities in China for $107.5 million. Similarly French handbag maker Longchamp has decided to buy out its Chinese distributor and Polo Ralph Lauren has also bought back China distribution right from Dickson Concepts.

The Chinese market which is already witnessing high growth in luxury segment expects to see 30 percent sales growth each year in the coming years. China is now the world's No.2 luxury goods market with sales of $9.4 billion in 2009, accounting for 27.5 percent of the global market, according to the World Luxury Association. The figure is expected to touch further to $14.6 billion in the next five years, making it the world's top luxury market.

Earlier last month, Coach said its China business could reach $250 million by fiscal 2012, and double from that by fiscal 2015. Luxury car maker Lamborghini owned by Volkswagen, said its sales more than tripled in China to 86 cars in the first half of 2010, making the market its second-largest after the United States, even as its global revenues fell 2.6 percent with 674 cars sold during the period.

China Marketing Volkswagen