Growth in the domestic Chinese luxury goods market has dropped from 12 per cent in 2012 to an estimated two per cent in 2014.
L2′s latest China report revealed nearly two thirds of brands missed 2013 targets for store openings.
Burberry, Louis Vuitton, Gucci made it to the top 10 in L2 China study, Swarovski, Piaget and Hugo Boss received top scores while Stuart Weitzman, Oscar de la Renta and Yves Saint Laurent all ranked in the bottom 10.
Fashion brands experienced faster growth than watches and jewellery brands, finds L2.
L2 urges luxury retailers to invest more in Chinese mobile market, projected to grow to $41 billion by 2015. It says Chinese online consumers have proven willing to make purchases via smartphones, with 77 per cent making at least one such purchase per week.