After a decline that has lasted for nearly five years, the domestic demand for luxury products in Europe seems to be recovering. This is what emerges from a report by Exane-BNP Paribas, resulting from interviews with a series of managers of luxury brands during the last fashion week for the spring/summer 2014 collections. According to the study, Europe might be the positive surprise for the luxury industry for the second half of 2013, thanks to a rise in domestic spending, which could add to the ongoing boom in purchases by tourists. The outlook for the second half of 2013 is also good for the American continent. Meanwhile, Mainland China remains a volatile market. Chinese customers are still interested in luxury products but after the encouraging signs for European brands at the end of the first half of 2013, the Chinese have either reduced their spending or made their luxury purchases somewhere else. Purchases by Chinese customers continue to prosper in areas such as Hong Kong, Macao, Singapore or Australia. Demand in Japan is solid, says the report. Considering all markets, the study affirms that the luxury industry is safely heading toward a good second half of the year, in which the sector is expected to grow more than in the same half last year.