Millennials are the reason behind the increase in luxury spending in China, according to a report from Reuters.
Brands like Gucci and Louis Vuitton have started to invest in the Chinese market recently, despite a slowing economy.
Cash rich millennials are the reason for this, and their favour of smaller cities rather than expensive locations like Beijing are becoming the place to be for high-end brands.
As part of the report, the news agency spoke with young accountant, Guo, in Eastern Suzhou, who told Reuters she now spends one fifth of her annual income on luxury goods.
She said: “Luxury is not a total necessity for me, I suppose, but whenever I’ve got enough money to spare, then I’ll buy.”
This attitude amongst that age group was behind the spike in luxury spending last year, a report from consultancy firm Bain & Co found.
The same report went on to describe how millennials are the key demographic for luxury brands at the moment and why the big European and American firms have been tapping into the Chinese market.
UK jewellery retailers are also reporting an increase in millennials from China boosting business, but in England it is the big cities such as London, Edinburgh, Manchester and Yorkshire reaping the rewards of this trend.
Hamilton and Inches chief executive officer, Stephen Paterson revealed to Professional Jeweller yesterday that Edinburgh has been experiencing a rise in Chinese tourists, many of which have been coming into store and spending money, while jewellers stocking watches have pinpointed this market as key drivers of luxury watch sales.