China's luxury market is the fastest growing in the world, set to rise an astounding 15 percent annually thanks to renewed confidence, middle class acceleration, and consumer sophistication.
This comes amidst accelerating growth in the global luxury market, which is expected to add 5 percent to an estimated 1.2 trillion euros (.4 trillion) in 2017, a recent study shows.
Chinese consumers, who are increasingly fashion-savvy, are boosting sales in local markets, which are expected to reach 20 billion euros this year, with contribution to global luxury buying by them estimated to represent 32 percent of the overall market in 2017.
The core market for personal luxury goods reached a new record high of 262 billion euros, boosted by a return of Chinese buying both at home and abroad as well as stronger purchasing trends in other regions, according to the "Bain & Company Luxury Study" released in collaboration with Fondazione Altagamma, the Italian luxury goods manufacturers' industry foundation.
"We started to see stronger momentum in the first half of the year, and this has continued in recent months, allowing the market for personal luxury goods to really regain its luster," said Claudia D'Arpizio, a Bain partner and lead author of the study.
"The growth in this market is more robust, driven by increases in volumes rather than prices and a rediscovered balance between tourist purchases and re-ignited local consumption," she added.
The positive growth in the global market is set to continue at around 4 to 5 percent annually in the next three years, with the personal luxury goods market seen to reach 295 to 305 billion euros by 2020.
Bain estimates online sales for personal luxury goods to take 25 percent of the market by 2025, with stores still accounting for 75 percent of purchases.