French luxury goods brand Louis Vuitton grabbed the attention of many when it partnered up with three coffee shops in East China's Shanghai to create three pop-up bookstores in late June.

Vuitton's local partners represent local brands that have emerged in Shanghai over the past few years: MANNER Coffee, PLUSONE Coffee and Metal Hands Coffee.

All of them have opened on-site stores in the wu tong district, which refers to well-known local neighborhoods in the city – such as Julu Road in the Huangpu district and Wukang Road in the Xuhui district – which are lined with sycamore trees that make them ideal for city walking.

Thanks to the Shanghai government's preservation plan to boost its historical charms introduced in 2007 and the rise of the creative economy from 2015, the wu tong district has seen a boost in the popularity of quality domestic brands whose products are on sale there.

LOOK NOW – a high-end women's fashion retailer and HARMAY – a warehouse-style retail cosmetics brand, are among many local brands that have successfully established themselves in the district, utilizing innovative business models to grab the attention of young consumers.

The main consumer group active in the wu tong district is the Z generation – people born between 1995 and 2005.

Many local brands, such as Saturnbird Coffee and To Summer – an eastern scents brand – have flourished there and become significant contributors to the economy and social scene.

These brands are now making a name for themselves on the global stage. One of the stars is LABELHOOD – a community of Shanghai fashion labels and creative designers.

It's rented a villa on Fumin Road in the Jing'an district, cultivating over 200 local designers, some of whom have shown their work at international fashion weeks.

Another top performer is an emerging fashion brand called XIAOZHUO. It has also chosen to establish its flagship store in the wu tong district, utilizing physical spaces imaginatively to satisfy the needs of its young customers.

Statistics show that the Wukang-Anfu Road area, part of the wu tong district, currently houses over 140 businesses, with around 85 percent of them independent brands established in recent years.

These brands generated a tax revenue of over 72 million yuan ($9. 88 million) last year and are expected to top 1 billion yuan in sales this year.