Agoracom

Living the good life
The Great Wall is the most awesome structure I've ever laid eyes on, but when I close those eyes and think of Beijing, what pops to mind is Rolex (22% of affluent Chinese men own one) or Rolls Royce. The affluence of the new luxury class in Shanghai and Beijing is simply a sight to behold.

In a mall in Beijing, you can browse three or four storefronts featuring Apple (Nasdaq: AAPL) products, and the company is aiming to open its first direct-run store by the time the Olympics begin later this summer. Lacoste, Valentino, Cartier, and Chanel are everywhere. Armani plans to open seven new stores in China in 2008, where young shoppers dig McDonald's (NYSE: MCD) and pop into Starbucks (Nasdaq: SBUX) for an afternoon jolt.

No wonder 60% of the Fortune 500 has a presence in Shanghai, a number that grows by the day. You can't help but wonder what the remaining 200 could possibly be thinking. China is already the planet's largest consumer, for Pete's sake, and the third-largest consumer of luxury goods in the world.

"The investment opportunity of a lifetime"
Nine times out of 10, you can dismiss statements like that as pure hype. But this is the rare case when the shoe fits. China may have hurdles to overcome, but the mass migration, urbanization, and rise of its middle class may be the investment story of our century.

But there's a catch. This transformation will be measured in years, not decades. Investors are looking beyond the skylines of Shanghai and Beijing to what I call The Real China Miracle. And I'd suggest that you and I should look there, too.

Morgan Stanley's chief economist calls it, "The biggest economic story to come out of China in 25 years." As far as I'm concerned, any company that doesn't have a defined focus and strategy to exploit this demographic tsunami isn't worth your time, energy, or money.