Stories of conspicuous consumption by Chinese visitors also abound in Rome, Milan and other European locales, including Liechtenstein, a tiny principality between Austria and Switzerland that is a member of the European Free Trade Association.

South Korea also has risen to become a hot spot for Chinese outbound spending, thanks to its geographical proximity and latest fashion lineups, according to the United Nations Tourism Organization.

The overriding image of Chinese tourists on Jeju island in South Korea is one of busloads of shoppers heading for the luxury boutiques in the Shilla duty-free shop, said Quan Yuefang, a tour guide with Nanjing-based Tuniu.com, an online travel agency.

"South Korea is becoming a new shopping darling for Chinese, notably those from eastern China who are tired of trips to Hong Kong or Southeast Asia," said Quan, who has led trips to the country for five years.

A growing number of approved destination status agreements, a strong yuan and a speedier visa process - even a visa-free policy, in the case of Jeju - are luring price-savvy middle-class earners, Quan said.

To gain traction, traditional sales channels for luxury brands should build a personalized experience and emotional connection with Chinese customers, Xu said

"Chinese consumers are continuing to be strong luxury goods purchasers, whether buying online through Daigou or visiting shops.

"But these consumers are becoming more sophisticated and going beyond simply showing off logos. They seek brands that demonstrate an understanding of and a respect for their needs, especially the brick-and-mortar stores," she noted.