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Three Louis Vuitton stores in China have closed since the beginning of 2015. Recently, the close down of Louis Vuitton store in the La Perle has triggered discussion about the wave of closure of luxury stores.

The world saw an increase of the population of consumers of luxury goods from 140 million to 350 million, and the Chinese consumers now make up more than 30 percent of all luxury goods sales worldwide, according to the 2015 Report on the Global Market of Luxury Goods released by Bain&Company.

As the purchasing power of Chinese consumers for luxury goods increases, why has the market for luxury goods in China become sluggish?

For one thing, China saw the rise of the second-tier and third-tier foreign brands. For another thing, the amount of Chinese tourists' overseas shopping surges.

In 2014, more than 100 million people spent over 1 trillion yuan during their travel in foreign countries. The difference in prices at home and abroad is the main cause of the rise in Chinese tourists' overseas shopping.

Price cutting has become a general practice of a number of established luxury brands, which hopes to go through difficulties in this way. As a matter of fact, the stores need to do more than just cutting the price of luxury goods. The customers complain that it is difficult to return or replace products in China, whereas foreign stores offer convenient ways to return or replace unwanted items.