Watch: Luxury brands are cashing in on China's millennials

It's no wonder global luxury brands from Gucci to Louis Vuitton are investing heavily in China Now these 20 to 34 year-olds are buying luxury brands from a young age, are purchasing more frequently, and splurging on everything from jewellery and fashion, to cosmetics and handbags, according to luxury brand industry experts Prada, which reported strong half-year earnings bolstered by Chinese consumers, opened seven stores this year in Xi'an, home of China's Terracotta Army in the northwest.

Three were for the Prada label, two for its Miu Miu brand and two for Church's LVMH opened a store in the sprawling central city of Wuhan, home to 11 million people, while jewelry brand Chaumet opened a store in the city of Wuxi, outside Shanghai A report by McKinsey showed Chinese luxury shoppers account for over $73 billion in annual spending, representing almost a third of the global luxury market.

Luxury firms are wary of demand softening in the second half of the year as the trade tariff war between China and the United States continues. . Source