More Chinese luxury spending set to stay at home, says Bain & Co report

Half of Chinese luxury spending will take place in China rather than traditional overseas locations by 2025, according to global consultancy Bain& Co.

Such purchase repatriation is thanks to a combination of factors like discretionary millennials, a crackdown on the domestic gray market and digital channel promotions in China, Bain said in its annual China Luxury Report released on Tuesday.

"Millennials will continue to be the main driver of the growth of this market in the future, as the average age of luxury consumers is much younger in China than anywhere else in the world ... and they value newness more than discounts," said Bruno Lannes, a Shanghai-based partner and author of the report.