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The rise of China and its resultant luxury goods boom is proof that every cloud — even the darkest, heaviest economic cumulonimbus — has its silver lining.

Makers and purveyors of luxury goods are, of course, not wasting any time in entering, understanding and capturing the market in that part of the world. Luxury behemoth Moet Hennessy Louis Vuitton (LVMH), for one, demonstrated the importance of the region several years ago by choosing to base its Asian watch and jewelry operations in Shanghai.

Jean-Marc Lacave, president and chief executive of LVMH Watch & Jewelry in Asia, explained that China is now the world’s largest market, especially for luxury products.

“It is now even beginning to influence many more established markets, including Hong Kong,” he said.

“The point was to be closer to our end users. And these days, end users, more often than not, means the mainland Chinese,” he continued. “We needed to learn about this market, and for us there was no better place to learn than in China.”

The Frenchman relocated to Shanghai in 2007, but has had close to two decades of experience in the multibillion dollar industry. He said the vibrancy of the business kept him enthralled.

“It is the perfect balance between the rational and the irrational — at the end of the day it is about sales, bottom lines and serving the company’s various stakeholders, but there is that irrational link to creativity, luxury and innovation,” he said.

Lacave charts the direction for the 150-year-old powerhouse Tag Heuer, as well as Zenith and Dior, from what is arguably China’s trendiest city and a cosmopolitan center that is fast making its mark among Asia’s heavy-hitters.

Thanks to the robust economy in this part of the world, and, of course, the big spenders from China and its neighbors, business has been good, he said.

“In this region, LVMH has been resilient. We had a good year last year, and the numbers from … this year have been promising,” Lacave said. “We’re doing well.”

In this climate, the sky’s the limit, and a brand like Tag Heuer continues to make significant inroads into the sector via continual product innovation and quality service, as well as tireless branding to increase visibility and name recognition.

“At the end of the day, it’s not just about having the right products,” Lacave said. “It’s also about offering the best customer experiences, and inviting them to come back. And that’s what we aim to do.”

The key is to help customers understand and appreciate the brand and their purchases. Strong concepts and high quality top the list of priorities. And minimalist store decor reinforces the brand’s story and codes, and highlights its dedication to serious watchmaking, as well as its longtime passion for chasing speed, keeping precise time and motor racing.

The Heuer family was among the first to embrace the motor age, owning automobiles by 1900. Tag Heuer has also worked for 26 years with the British-based McLaren group, better known as the Vodafone McLaren Mercedes racing team, which is home to speed devils Lewis Hamilton and Jenson Button.

Having the advantage of being the first on the market is one thing, maintaining momentum is another.

“China is, of course, the No. 1 customer. The key factor is maturity. In any given market, new wealth is always being created, and luxury brands are always getting new customers,” said Lacave, adding that he feels similarly upbeat about the sprawling, largely untapped Indonesian market.

“The potential is most definitely there,” he said. “The challenge is in communicating the brand correctly. Whenever you dive into any market, it’s important to make sure that brand is expressed the same way everywhere.

“We can cater to the local culture and customers’ likes and dislikes, but we must also stay true to the brand. It’s about knowing and understanding, then doing.”

The next trend in the luxury market, he said, is a taste for the classical. “Brands will start to look back and return to timeless designs of the ’70s and ’80s,” he predicted.

Tag Heuer is ahead of the pack with the release of the Heuer Carrera Mikrograph 1/100th of a Second Chronograph, among others. The former mixes the iconic Carrera with the Mikrograph of 1916, which was the first stopwatch to measure 1/100th of a second.

And as Asia begins to move to the driver’s seat in the luxury goods market, Lacave is increasingly positive about the future. “It’s about providing the best in products, innovation, creativity and service, to be sure that our customers like to come to our brands, and like to come back,” he said.