According to the recently released China Luxury Report 2019 by consulting firm McKinsey, more than 100 billion U.S. dollars are spent by Chinese at home and abroad to buy luxury goods, indicating that Chinese consumers are powering the global luxury market.

The research shows that the majority of consumers are millennials. Daniel Zipser, a senior partner at McKinsey, noted that shopping has changed.

Young Chinese consumers now prefer brands with a unique story and original design since they view the purchase of luxury goods as a lifestyle rather than just for showing off on social media.

"Younger shoppers in China who are born in the post-90s contribute a large part of spending, and actually they are even more informed. They also put large emphasis on the elements beyond brands," said Zipser.

The report also states that there is intense competition between international brands and domestic brands in China, while the country transitions to a digital era.

As new brands hit the Chinese market, its consumers are adapting quickly to them.

Zipser cited there are vast opportunities for new players while European brands are still preferred by young consumers born in the '90s, while only 10 percent of them choose local brands.

"New Chinese home-grown brands still have a long way to go," he added.