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China's young shoppers breathe new life into luxury market

These consumers are typically less loyal to traditional brands, swayed by shifting trends online and increasingly looking for deals. “Some of these youngsters, even when they don’t really have enough funds, they’re still going out and buying luxury products,” said Huang Yue, 27, who runs the fashion section at the website “Loving Luxury.” Yue added that the shift to millenials, those aged roughly 20-34, had been dramatic. It spurred the rise of new areas such as luxury “streetwear” and sporting attire, which Bain said were behind the recent fast growth. “In terms of the impact on the market, it’s really given it a shot in the arm,” Yue said. Driven by general find more optimism, attracted by the ease of online shopping and helped along the way by parents who benefited from the country’s fast growth and rising home prices, Chinese millennials are buoying the luxury market at home and abroad. Millennial shoppers pushed the Chinese market up to 142 billion yuan ($22.07 billion) in sales last year, about 20 percent higher than the year before. It is by far the steepest jump in over half a decade of sluggish growth, according to Bain. Luxury goods purchased in China make up 8 percent of the global total, while Chinese shoppers – who make three-quarters of their luxury purchases overseas – drive 32 percent of sales worldwide. LVMH’s chief executive, Bernard Arnault, said China was a “very dynamic” market in which the Louis Vuitton brand was doing well.

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