Touted to top world’s largest luxury goods market within the next five years, China is certainly moving up the luxury scale. But Japan may soon lose its slot in the list of the world’s largest luxury market. It is reported that Gianni Versace will shut down its stores in Japan as there is decline in the demand for luxury goods. And Versace isn’t the first brand to take this step. Last year Louis Vuitton scrapped its plans to open a store in Ginza, Tokyo. A senior economist quoted that Luxury goods makers see less need to sell their products in Tokyo with the increasing importance of Singapore and Hong Kong as financial centers.