A Close Look At China's Growing Appetite For Luxury Brands

Bobby Yip/REUTERSDespite China's recent crackdown on luxury spending, wealthy Chinese buyers are becoming increasingly sophisticated when it comes to buying high-end goods, a new report from Digital Luxury Group shows.

They increasingly see luxury purchases as "lifestyle" rather than "celebratory," and have become more interested in smaller niche brands, as opposed to big established brands like Gucci and Louis Vuitton, Jing Daily recently wrote.

This year, Chanel overtook Louis Vuitton as the most sought-after luxury brand in China, DLG found.

“Many brands expected that an increase in Chinese sophistication would reduce the cultural gap with their overseas consumers," said David Sadigh, Founder and CEO of Digital Luxury Group. "In some cases, it actually contributed to the development of unique local preferences, independent from Western tastes, thus challenging luxury brands in terms of product offering but also opening up the way for new opportunities to grow in the Chinese market."

DLG shared the overall results of their annual luxury index for China with Business Insider. For a more in-depth look, download a copy of the report here.