Fashion brands get makeover in China

These local designs sell well because they are interesting and exclusive. There is also less chance that customers will experience the embarrassment of finding someone else wearing the same clothes.

And the quality of service on offer is what makes customers shop here instead of going online, Burke said. "The traditional department stores' service level is quite low," he added. "We have to make sure our environment is more interesting."

Galeries Lafayette has introduced a VIP room and personal shoppers who will bring clothes that meet customers' requests.

According to I.T's financial report, Galeries Lafayette's revenue increased about 30 percent in the first quarter of 2015 compared to the same period last year. Detailed financial figures have yet to be released.

But the department store is eager to increase its share of China's retail industry, which has continued to expand during the past five years.

The store is also trying to attract more domestic tourists by working with major agencies, airlines and hotels, as its data show a large number of its customers are from outside Beijing.

Strong awareness of Lafayette labels among Chinese outbound tourists is a massive benefit to its expansion plan in the country, according to Burke. It will seek to cash in on the brand by opening 15 new department stores in China, with two due to be rolled out each year. As yet, the company has not revealed exact locations.

The new stores do not necessarily need to be of the same size as its first one in Xidan. "It could take two or three floors in a shopping mall or do things without food or beverages," Burke added.

Guo Zengli, president of the China Shopping Center Development Association of Mall China, pointed out that Galeries Lafayette stands out among foreign department stores, such as Parkson Group, a division of the Malaysia-based Lion Group, which has performed poorly.

"Having a very different model from Chinese department stores, Galeries Lafayette has the patience to cultivate the market and it will see an increase in its sales as consumers in China become more mature and more diversified," Guo said.

By working with its suppliers rather than only making money by renting out space, Galeries Lafayette has developed a competitive edge.

"To be responsible for the merchandise, pricing and consumers, means that once it gets a feel for the market, it will thrive," Guo said.