Lafayette, the French company whose flagship store on Boulevard Haussmann in Paris is reportedly the second-most-visited site by Chinese tourists in the French capital – the first being the Eiffel Tower – has just one store in China now.The Hong Kong-headquartered luxury retailer, which owned by British, has always consider

Asia as its biggest market. Its new store will be set in Shanghai.
It seems that luxury store like Lafayette has targeted to China mainland recent years.
But the issue is, is it a good thing? Will it hurts the current revenue stream of China’s local luxury brands? The foreign luxury brands has occupied and conquered the high social status market in China and restrict the creativity of the luxury industry located in China. Besides, China need to develop the service industry in order to complete the economic transition.

Meanwhile, some white-collar’s desire to show off one’s taste for elegance locks middle-class Chinese into a competitive struggle to sport the latest and best Italian clothes, designer handbags. And when it comes to function, most of the time one can get by just well with good generic brands versus expensive luxury goods.