While retail sales in the US and Europe are slumping, China's consumer class is just hitting the scene -- and they're willing to shell out some serious money on fashion. Designers like Prada, Armani, and Louis Vuitton are having a bonanza with newly rich Chinese who are hungry for the status symbols of conspicuous consumption. Yet, there's also a rising demand for $10,000 cocktail dresses and brands like Hermes from the growing ultra-rich class.

Traditionally, the Chinese market has been mostly dominated by accessories because of the limited space in China's crammed shopping malls -- which has led to the ridiculous level of knock-offs and forgeries. But that trend is starting to shift as retailers are steadily getting access to space where they can branch out. Coach is planning to open 50 retail stores in the mainland this over the next few years and tons of others are on the same kind of track. As you can imagine, renting a prime location for you flagship store in Shanghai is a royal rip -- but apparently it's paying off big time.