Luxury brands are investing in China. Increasing spend by cash-rich Chinese millennials is prompting brands to revamp some stores and open new ones in second- and third-tier cities where luxury spending is growing faster. Youngsters account for around 30 per cent of the sector's sales. Millennials from the middle and middle upper are absolutely not hesitant to buy luxury brands.

Armed with family money, 20 to 34 year-olds start buying luxury brands at a young age and purchase more frequently, splurging on everything from jewelry and fashion to cosmetics and handbags. Revenue growth in China's luxury segment was around 15 to 20 per cent for the first half of the year. Chinese luxury shoppers represent almost a third of the global luxury market.

The share of luxury purchases made in China is rapidly increasing, spurred by price cuts from top brands after import duties were cut on some goods and buying products from overseas websites and vendors was made difficult. Price of luxury goods in China, previously significantly higher than in Europe and the United States, have been gradually falling. Taxes have also been lowered by seven to 17 per cent, allowing firms to cut prices.

To capture the rapidly growing millennial market, global names are increasingly moving further afield from China's first-tier cities - the previous engines of growth.