From Deutsche Bank:

"... sales of luxury goods in China only grew 2% yoy in 2013, far slower than the 30% yoy growth in 2011 [ed.: what was it in 2012?]... As the China luxury market is shrinking, international luxury brands have slowed down their expansion in China. LV adjusted its strategy which a narrowed focus on Tier 1 cities and remained cautious about entering lower tier cities. GUCCI also announced a suspension of expansion plans in China. Meanwhile affordable luxury brands are raising share in the China market. Affordable luxury brands refer to goods with luxury designs and materials but affordable pricing, covering handbags, accessories, watches and other categories. For instance, Coach’s total sales growth in China was 35% in 1Q14 and was estimated to increase by at least 25% yoy for 2Q14."