“After a period where many mainland Chinese shoppers traveled to Europe to make their purchases in the search of better deals, the tide has turned, and more and more now choose to buy online or in foreign locations closer to home like Hong Kong, Japan and South Korea,” Ms. D’Arpizio said.
Overall, that growth in China is helping the global luxury market regain its luster. That is evident in earnings reports. Major players like LVMH have posted glowing earnings reports this year, with overall sales volume rather than price increases driving market growth.
Aside from China, other bright spots cited in the Bain report for this year included the United States, where a weaker dollar should lift sales to tourists, and Asian markets excluding China, where sales figures are expected to grow by between 9 to 11 percent.
The only major region expected to struggle is Europe, where a stronger euro is expected to weigh heavily on luxury sales, particularly to tourists.
Like in China, though, the key for luxury brands will be targeting younger, tech-savvy shoppers, according to Bain.
“Customers are responding to targeted strategies,” said Federica Levato, a Bain partner and the report’s co-author. “The best performing brands are already winning over the customers of tomorrow.”