Niche labels set to fill gap left in the market

Niche luxury labels are now targeting China, as many of the more everyday luxury brands start to experience slower growth.

Chinese consumers, especially in the bigger cities, have grown in sophistication, and are now choosing luxury items to suit their everyday needs.

"I am tired of the handbags, which are everywhere," said Zhang Yuan, a 29-year-old office worker in Beijing, who said she has moved onto some niche or designer brands, after owning several big name products.

It appears she's not alone in her move upmarket.

Givenchy, a French high-end fashion brand owned by LVMH Group, opened its latest store in China in March, and said in its annual report that it expanded its presence in China in 2012.

Pucci, an Italian high-end female dress label, unveiled its first retail location in the Chinese mainland in 2012.

And Stella McCartney, a fashion brand co-established by the designer and Kering Group, also opened its first Chinese store in Shanghai last year.

Alberta Ferretti, the Italian high-end fashion label, does not yet have any stores in the Chinese mainland, but its Philosophy brand has opened its first store in Hangzhou, the capital city of Zhejiang province, to test the market.

To make their presence felt, niche brands are also turning to other channels such as the Internet.

Shangpin.com, one of the main online luxury retailers in China, signed an agreement in March to cooperate with the Council of Fashion Designers of America.