The mainland's luxury goods market is expected to grow by 30 per cent this year as young consumers snap up coveted watches and leather hand bags despite a slowing economy.
Consumer confidence in the world's fastest-growing market remains high, though luxury brands are reducing the pace of their expansion, according to a report by the global consultancy Bain & Company.
Sales of luxury goods on the mainland could hit 113 billion yuan (HK$137 billion) this year, up from 87 billion yuan last year, mainly driven by new customers, the firm said.
The mainland is expected to become the world's fifth-largest luxury market, with the rate of growth well ahead of the largest market, the United States, where luxury spending is on pace for an 8 per cent increase.
Japan, the second-largest market, is likely to record a scant 2 per cent growth this year.
Bain partner Bruno Lannes predicted sales would continue to rise at a 'healthy pace' next year, though growth will slow from previous years.