China's luxury industry is still feeling the impact of the country's economic slowdown and domestic consumers' growing interest in shopping overseas.

The industry contracted for the second consecutive year by 2 percent last year, with the total amount spent falling to 113 billion yuan ($17.2 billion), according to a report from consulting firm Bain & Co.

The decline was seen particularly in sales of menswear, watches and leather products, which were down by 12 percent, 10 percent and 5 percent.