Luxury brands are still feeling the cold

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.