Luxury goods group Prada Holding NV has revealed plans to expand further into China to take advantage of the fast pace of market growth there.

Prada, which presently operates 22 outlets there, says it is setting up its fourth global megastore in Shanghai.

China is the fastest growing of the world's top 10 economies, with its luxury market - which China entered eleven years ago - seeing growth of approximately 60 per cent annually.

Prada has also announced that it may move some of its production from Italy to countries with cheaper production costs such as China, according to media reports.

Chairman and chief executive Patrizio Bertelli says that the fashion house is in the early stages of weighing up the potential advantages of outsourcing some of its manufacturing.