Chanel was voted China's favourite fashion brand 2013 World Luxury Index beating fellow top ten entries Estée Lauder and Louis Vuitton.
Chanel is China's favourite fashion brand.
The French designer label ranked behind Audi and BMW - which came first and second - in the country's 2013 World Luxury Index, which compiles the most popular luxury brands amongst the population.
Other fashion and beauty companies which managed to get a spot in the top five included Estée Lauder in fourth place, followed by Louis Vuitton at number five.
Meanwhile, Dior took eighth place, Lancôme ranked number 11, Gucci made the twelfth spot, and Hermès took number 13.
The list was put together by Digital Luxury Group, and the company's founder and CEO, David Sadigh, believes Chanel's success in China is due to its beauty products.
He told WWD: ''Chanel is benefitting from an important level of interest in China, mostly emanating from strong interest from Chinese consumers in its beauty products, which Louis Vuitton does not have.''
However, Louis Vuitton will soon be hot on Chanel's heels as the company is planning on making the most of China's interest in beauty with the launch of its first fragrance since the 1980s.
Although no specific date has been revealed, it has been confirmed the perfume will be distributed exclusively in Louis Vuitton boutiques.