Estimates by Bain & Company shows, by the middle of this decade global luxury spending by Chinese nationals will increase to 50 per cent from 35 per cent in 2019. Top fashion brand Louis Vuitton reported a 65 per cent increase in China sales in the second quarter, compared to the same period of 2019. The company’s Paris-listed stock declined by just 4 per cent this year, while shares in rival handbag maker Hermès increased by upto 8 per cent.

According to Bernstein Research, young Chinese consumers whose incomes are bolstered by their parents’ savings are a major source of growth for luxury brands. They are like Japan’s “parasite singles” who lived rent-free in the family home during the 1990s and spent a big chunk of their wages on designer baubles.

Japan’s luxury boom wasn’t ended by slower growth but by demographics. As the population aged, spendthrift young shoppers weren’t replaced in adequate numbers to keep demand high. Today, the Japan accounts for just 10 per cent of global luxury sales.