It is no secret that it is no longer that cheap to make things in China. But now, it is becoming expensive to sell there, too.

Neiman Marcus, the US multi-brand luxury retailer, plans to enter China via e-commerce rather than traditional bricks-and-mortar. And it is not the only one. A report due to be published on Friday shows that the spiraling cost of doing business in the country is driving other foreign companies with new products away from traditional retailers and into the arms of e-commerce firms.

The problem for retailers looking to get into China may be two-fold. Listing costs are high – but brand recognition may not travel online. The Neiman Marcus news was greeted with scepticism by local retail analysts. Shaun Rein of China Market Research in Shanghai said: “nobody knows who Neiman Marcus is in China.”