Spanish retailer Zara tops this week’s ranking of most popular Facebook fashion brands, followed by Swedish ‘arch rival,’ H&M.

Chanel is to begin selling products directly through its website later this year in a landmark decision likely to be followed by rival luxury brands.

Chanel will sell only its fragrances online but is looking to extend this to eyewear and accessories.

In the past, luxury fashion brands have shied away from selling goods via the web, but some industry figures believe 2010 could be a ‘watershed’.

A marketing company called Stylophane has developed a new index that ranks brands by Facebook followers, with its list highlighting the popularity of sportswear brands in comparison to luxe brands including Burberry and Gucci.

The top five of Stylophane’s Facebook Fashion Index are dominated by sportswear brands Adidas, Nike, Puma, and Lacoste (in descending order), with Swedish fast fashion retailer H&M — in third place — being the only exception.

It is not until spot six that high-fashion labels are mentioned, with social media forerunner Burberry leading the pack, followed by Chanel (8) and Gucci (9).

Wang Jing was all smiles as she strolled out of a Cartier boutique in Singapore after blowing close to 5,000 US dollars on a watch and a ring.

“It’s something I have always wanted, and besides, the economy isn’t looking too bad at the moment,” the Chinese tourist in her early 30s, in Singapore for a four-day spree, said.

“There’s no reason for me to hold back,” she said with a laugh that is music to the ears of the global luxury goods industry.

From diamonds to designer tea, high-end retailers battered by financial turmoil in the United States, Europe and Japan are now looking to China, India and other developing Asian nations for salvation.

For the man who has everything except that perfect alligator skin jacket, he need only visit Hermes’ newly opened boutique on Madison Avenue in New York, where the snappy garment sells for 158,000 dollars.

Despite the economic crisis, 2009 ended better than it began for the French luxury goods sector, thanks largely to China’s growing taste for high-end products, encouraging thoughts of a better 2010.

Following the trend set by other global luxury brands, Hermes and LVMH announced fourth quarter sales growth on Thursday and Friday, suggesting the worst of the crisis could be over for the sector.

After announcing that annual profits fell 13 percent to 1.7 billion euros (2.3 billion dollars), LVMH chief executive Bernard Arnault said he was pleased with “record” sales figures for December, which he said would “grow in January”.