In December 2006, high-end retailerLane Crawford, known for sellingluxurious goods, closed its Shanghaioutlet quietly. Several days later, thelogo of Maison Mode appeared onthe wall of Shanghai Times Squareon the east section of Central HuaihaiRoad where Lane Crawford used tolocate. Maison Mode, another HongKong upscale department store, willfill the site after a refurbishment.Being two retail brands owned byHong Kong-based The Wharf(Holdings) Ltd., Lane Crawford andMaison Mode differ from each otherin business modes. Lane Crawfordfeatures a “purchase-based” mode-it sends out buyers to hunt for high-end brands, often with high pricingbut unfamiliar names, designed byfamous designers. Around 90% ofthe goods are purchased in this way,which, as Lane Crawford sees,should have raised its gross profit ratebecause of few purchase links. Butin the newly-arisen Chinese luxuryconsumption market, most peoplestill tend to buy goods of famousselections. Though it is well receivedin Hong Kong, Lane Crawford hassuffered lackluster sale since itopened the headquarters in Shanghai.The replacement of Lane Crawfordby Maison Mode reflects an imma-ture consumption market of luxurygoods in China. Despite the luxuryindustry’s high expectations, Shang-hai is obviously not yet a paradise ofevery luxury goods dealer. In December 2006, high-end retailerLane Crawford, known for sellingluxurious goods, closed its Shanghaioutlet quietly. Several days later, thelogo ofMaison Modenext on the wall of Shanghai Times Squareon the east section of Central HuaihaiRoad where Lane Crawford used tolocate. Maison Mode, another HongKong upscale department store, willfill the site after a refurbishment.Being two retail brands owned by Kong Kong-based The Wharf (Holdings) Ltd., Lane Crawford and Maison Mode differ from each otherin business modes. Lane Crawfordfeatures a “purchase-based ”mode-it sends out buyers to hunt for high-end brands, often with high pricingbut unfamiliar names, designed byfamous designers. Around 90% of the goods are purchased in this way, which, as Lane Crawford sees, should have raised its gross profit But this the newly-arisen Chinese luxuryconsumption market, most peoplestill tend to buy goods of famousselections. Though it is well received in Hong Kong, Lan e Crawford hassuffered lackluster sale since itopened the headquarters in Shanghai. The replacement of Lane Crawfordby Maison Mode invest an imma-ture consumption market of luxury goods in China. Despite the luxuryindustry’s high expectations, Shang-hai is obviously not yet a paradise ofvery luxury goods dealer .