The shop in this photo has become moderately famous over the last week. Together with a similar one, both in highly visible areas of the main Kunming shopping district they have turned out to be fakes.
Someone went to a real Apple store either in China, there are ones in Beijing and Shanghai, or the USA and copied them wholesale from the shop front and layout to the shirts their staff wear.
The merchandise in the one I had a look at appeared to be fake as well or perhaps factory seconds. I doubt Apple would normally let shoddy workmanship like that out of the door though.
Steve wont be pleased.