A model wears a dress by Chanel at the Métier D'Arts collection show in Shanghai, China.

"Coco Chanel never came to China," fashion "Kaiser" Kar Lagerfeld told reporters. So the clothes in his new collection "imagine the trip she never made, a fantasy of her coming to Shanghai in the 30s and 40s and during the Cultural Revolution." Lagerfeld, the head designer at Chanel, was speaking at a press conference during his visit to Shanghai on Dec. 3 for the launch of his Métier D'Arts collection. "Shanghai has a very special reputation, very different from other Chinese cities."

Chanel herself created iconic styles in her lifetime, and Lagerfeld has carried on mainly using achromatic colors. But this time he showcased a collection of bold red and flamboyant gold. Chanel built a stage on the Huangpu River to showcase the collection featuring handmade belts embroidery, shoes, and other accessories made by craftsmen.

The Chinese inspiration was keenly felt throughout the collection, as there were a jacket and a hat that resemble the Mao suit, and coats inspired by the uniform of a Chinese warrior.

The fact that Coco Chanel admired China, as Lagerfeld said, partly explains why he chose a China-inspired theme, but the main reason is the growing buying power of Chinese consumers. While the luxury brand market in Europe, Japan and the United States is in a decline, in China it is growing faster than anywhere else in the world. A Chanel boutique opened in the ground floor of the Peninsula Hotel in Shanghai on the day of the fashion show and drew huge crowds.