This paper, however, posits that companies engaging to sell luxury good must also consider factors other than the increase in the income of the consumers (any ideas what they are?). Hence this paper seeks to answer the question: What are the critical success factors for luxury goods companies looking to expand in China?It was established that there is the relationship between rising in income and rise in the sale of luxury goods in China. Historical facts bear to the validity of the principle. (Caldwell – 1990) As a result of past successes, China’s economy is expected to grow further for the next five years at the least. But although this dissertation paper believes that the theory is generally true, there is also an exception to the rule that not all companies who will deal with luxury goods will be successful. Some of them may fail and they still need to formulate their strategies to become successful. The expected rise income in China for the next few years does not guarantee the success of a company planning to deal in luxury at China. There are other critical success factors that must be considered.The size of the market and the distinctions per regions in China are important in selling luxury goods. The customers’ buying behaviour is also importing as there is a need to segment customers in terms of characteristics including the way the Chinese people buy goods and how they think. Sellers of luxury goods need to have their brand strategy as a necessary requirement which must be protected with the help of the government of China. Because of the uniqueness of the nature of the business, there is also a need to study not only knowing how to sell a product but to also sell a lifestyle or a culture. The newness of the industry also required continuous training of people to afford the availability of staff who will act as ambassadors of the company dealing in luxury goods and the reason for the continuous innovation in business. Because also of changing customer needs and wants which are unique to Chinese culture companies must also have the capacity and power to innovate product.