Neiman Marcus, the luxury US retailer, has bought a strategic investment in a Hong Kong-based e-commerce company as its first move into the fast-growing luxury market in China.

Through its $28 million stake in Glamour Sales Holding (HK) Neiman Marcus will launch an e-commerce website by the end of 2012, targeting affluent Chinese consumers.

The site will have editorial content, fashion expertise and behind-the-scenes videos. Karen Katz, president and chief executive of The Neiman Marcus Group said: "Our strategic investment in Glamour Sales gives us a tremendous partner and a strong foothold in a rapidly expanding luxury market. Glamour Sales' keen understanding of the Chinese market presents us with a unique opportunity to build a vibrant full-price, multi-brand, luxury online business in China.”

It is the latest sign of the power shift from West to East where sales of luxury goods are soaring off the back of the rising disposable incomes of China's middle classes. According to the latest research from consultant Bain & Co, luxury sales growth in China is soaring at 35 per cent annually, as the fastest growing market for luxury goods in the world.

"When factoring in spending in Mainland China and spending by Chinese tourists abroad, luxury consumption by Chinese people is now just over 20 percent of the global market, of €191 billion ($252 billion) in 2011" said Claudia D'Arpizio, author of the report.