An increasing number of international luxury brands are attracted to the growing market potential in China. Boutique stores are open everywhere in the larger cities. We interviewed Philippe Pascas, Chairman/CEO of LVMH watch & jewelry division, about how he sees the luxury goods group expanding in China. His division represents only 4% of LVMH annual revenues, but is growing at a 23% sales rate in 2006. Dior is one of their popular brands worldwide and is very hot in China.