>> In China, luxury brands are back in fashion. A new report shows sales have risen at the fastest pace in over five years, with brands like Gucci and Chanel cashing in after half a decade of economic gloom. As Reuters Adam Jordan in Shanghai tells us, they have millennials to thank.
>> What we're seeing is a new generation of younger Chinese, these millenials aged between around 20 to 34, who are really starting to kick into gear and once again drive the country's massive luxury market. And the reason that's important, of course, as well is that China is one of the largest markets in the world.
Chinese shoppers both here and abroad are the biggest single group spending on luxury products, from Prada to Gucci to Louis Vitton.
>> Behind the resurgance, an economic upturn and tax cuts on goods brought into China. Last year, the market grew 20%, by far the fastest pace since 2011 when sales were hit by a fierce corruption crackdown and lavish spending by President Xi Jinping. Rising from the ashes, a new generation of tech-savvy luxury shoppers.
>> In terms of what the brands are gonna have to be doing is they're gonna have to be revamping their offering, the way they reach out to consumers here in this market. We're already seeing that happening with key opinion leaders online. With increased use of digital to reach out and to lure in shoppers in the market, as well as the designs that we're seeing as well here that are being popular with young Chinese.
Often sort of more fashion conscious and zany than some of the old traditional models that may have done well before.>> But within this newly turbo-charged market, not every hallowed name in high-end fashion is a winner. Among those riding the wave, Gucci and Louis Vitton, as well as alcohol makers like Hennessy, who've seen sales rise in China as well.
More traditional brands like Prada haven't cracked the code yet with younger customers, and may be looking to revamp and latch on in 2018.