A China luxury goods market study released by Bain & Co also showed that the growth rate of the Chinese luxury market was a mere 2 percent last year, while the figure in 2012 was 7 percent and 30 percent in 2011. The slump was so huge that the US market overtook Asia to become the engine of the world's luxury market. The consultancy predicted the trend might continue throughout 2014.

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However, it is too early to make firm assessments because there is still some good news for the sector. Luxury brands may only need to take a new path instead of sticking to brick-and-mortar stores because mobile luxury spending is on the rise in China, a recent KPMG e-commerce study showed.

About 70 percent of the survey respondents said they use their desktop computer every day to purchase items or search for information on luxury products, while 60 percent said they use their smartphones every day for this.

The survey also highlighted greater confidence in online channels across all age groups, including higher transaction amounts when purchasing online. The average amount spent by respondents on their last item was 1,515 yuan ($250) while 17 percent said they had last purchased an item online costing at least 2,000 yuan.

Online shoppers in tier-one cities tended to spend higher amounts when purchasing online, at about 1,640 yuan on average. The number was 1,350 yuan in lower-tier cities.

"China is steaming ahead because its citizens have three to four devices, more than the average globally. It is therefore essential for online luxury brands to have a strong mobile strategy, to look at their segmentation and develop interfaces that work well for both desktops and smartphones," said Egidio Zarrella, clients and innovation partner at KPMG China.

Despite the opportunities on hand, some luxury brands have been slow to adopt online strategies in China, preferring to take a wait-and-see approach. Nick Debnam, Asia-Pacific chairman of the consumer markets division at KPMG China, said: "Online is becoming more important for brand-positioning, and people are spending more and more online. I think this is a journey, and it is becoming more important to the brands."

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