According to a recent report by Bain & Company, a global management consulting firm based in Boston, worldwide sales of luxury goods such as high-end handbags, leather products, watches, shoes, and jewelry are expected to set a record high of 308 billion USD, up 5% from the previous year.

In 2016, fluctuations of global currencies and a spate of security threats in Europe curbed tourist spending in the region, while a Chinese economic slowdown rattled the luxury sector. Bain & Company’s experts indicated that the first half of 2017 saw the recovery of the global luxury goods market, which was still growing in the past few months. They also called this year’s growth “healthier”, driven by a rise in volume rather than prices and balanced between tourist purchases and local buyers.

Many loyal consumers with strong earnings, who always look forward to new versions of branded products from Apple, Hermes, and Louis Vuitton, have helped those brands earn huge revenues year after year. In addition, an increase in the number of young millenials in recent years, has boosted prospects for the luxury goods market.

Chinese buyers bought one-fourth of all luxury goods in 2017, but only 10% were purchased in China.

Changes in shopping habits play a key role in boosting luxury market growth. The world has seen a “Luxury 3.0” trend, in which super-rich people are willing to spend more money online for luxury goods and services. Brands have turned to new marketing policies, giving more priority to products with links to charitable activities. This trend highlights unique artwork, designer clothing, and unusual tourist destinations.

Bain forecasts that the industry as a whole could notch annual growth rates of 4% to 5% and help fuel the recovery of the world economy.