SHANGHAI, Nov. 17 -- A changing of the guard is underway in China's US$49 billion (RM203 billion) luxury market.

As an economic slowdown batters the sales of global giants like Gucci and LVMH, a new wave of confident, culturally-attuned home-grown brands is surging to fill the void.

Labels like jeweller Laopu Gold and handbag maker Songmont are posting triple-digit sales growth by offering a compelling new vision: modern luxury that is proudly and authentically Chinese, Bloomberg reported.

This shift is so significant that even Bernard Arnault, the chairman of LVMH, was recently spotted browsing - and buying - from these upstart local brands during a visit to Shanghai.

The numbers tell a stark story. According to data compiled by BigO...