Chinese to buy nearly half of world's luxury goods in 2020: report

In a 140-page report titled "Dipped in Gold: Luxury Lifestyles in China," CLSA says that, with annual growth of 23 per cent, China will soon be the world's biggest domestic market for luxury goods.

"Luxury goods companies are expanding rapidly to accommodate demand that will account for half of their forecasted global growth in the next 10 years," a summary of the report said.

"Louis Vuitton's biggest customers are already Chinese buyers," the summary said. Including the territories of Hong Kong and Macau, the area "represents 28 per cent of sales for Swatch, 22 per cent for Richemont, 18 per cent for Gucci, 14 per cent for Bulgari and 11 per cent for Hermes."

The rapid growth in luxury spending would be driven partly by the fact that Chinese millionaires are on average 15 years younger than their overseas counterparts, the release said.

"Secondly, success, wealth and fame/social standing are highly regarded in Chinese culture and displaying this through watches, jewelry, apparel, cars and wine garner respect," it said.