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  1. #1
    \(^.^)/ Jennifer's Avatar
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    Default Shang Xia - Hermès' New Chinese Brand!

    PARIS - FRENCH luxury goods group Hermes is set to open a Chinese subsidiary later this year that will sell furniture, clothes and household accessories, the company said on Wednesday.

    The group, which already has a major presence in the fast-growing Chinese market, said the new company, Shang Xia, would open its first store in Shanghai in the spring, then a second in Paris in the autumn.

    The company will have Chinese managers and is intended to showcase 'high-class Chinese artisanal knowhow,' Hermes said.

    Hermes already has stores in around a dozen Chinese cities. -- AFP
    -straitstimes.com

    Three days before Christmas, the savvy folks over at godly luxury company Hermès quietly announced that they would launch a new brand in China called Shang Xia The label will incorporate Chinese raw materials and local craftsmanship tailored to the specific desires of the Chinese luxury consumer, who, as we mentioned last week, loves Western brands like Armani and Chanel.

    Why is this such a big deal? Well, Hermès—the most well-respected luxury brand in the world—doesn’t take risks. If they’re willing to launch an entirely new concept, there’s got to be a sure-fire financial gain behind it, right?

    I asked my go-to China expert, Patricia Pao, what her thoughts were on the acquisition. Pao, a luxury consultant who in the past worked for LVMH and Elizabeth Arden, has spent the last year researching China’s affluent consumer. “Hermès purchased Shang Xia to provide an entry price point into the market so that they wouldn’t have to compromise the pricing of their own brand,” says Pao. “They’re also appealing to the Chinese desire for unique, exclusive merchandise that can be found only in mainland China.”

    Hermès isn’t the first luxury company to try this strategy. Fancy pen maker Mont Blanc has a collection of pens specific to its Chinese audience. And last year, Swiss watchmaker Bedat & Co. introduced Red8, a watch brand that’s produced in China, and though available globally, is geared towards Bedat’s Chinese customer.

    Yet while we’re likely to see some other big luxury companies taking a similar approach over the next year, it’s going to take a long time for the money to start rolling in.

    “I think this is a risky strategy in the short term because Chinese luxury buyers prefer Western brands,” says Pao. “Local brands don’t carry as much prestige. Hèrmes can do this because they’re privately held, family-owned and committed to building this brand for the next 100 years. And by then, I have no doubt that Shang Xia will be an established luxury goods brand.”
    - fashionista.com

  2. #2
    *Moderator* vuittongirlxoxo's Avatar
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    Default Re: Shang Xia - Hermès' New Chinese Brand!

    Very interesting! Thanks for the news, Jennifer.

    wishlist..
    .sofia coppola monogram
    .vernis alma mm in pomme d'amour
    .artsy mm
    .python galliera pm
    .monogram galliera pm

  3. #3
    Totally Purse Obsessed
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    Default Re: Shang Xia - Hermès' New Chinese Brand!

    It will be very interesting to see what comes of this.

  4. #4
    *The TBF Elite* FedUp's Avatar
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    Default Re: Shang Xia - Hermès' New Chinese Brand!

    Very interesting! considering the per capita income and the exchange rates, i wonder how the items are priced and how much do they sell
    "You never know how strong you are, until being strong is the only choice you have."

  5. #5
    Moderator/Blogger VivaLaJuicy's Avatar
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    Default Re: Shang Xia - Hermès' New Chinese Brand!

    Very interesting indeed, I'd like to see some pictures.

  6. #6
    Bag Admirer ShoppingL's Avatar
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    Default Re: Shang Xia - Hermès' New Chinese Brand!

    yeah please.. please share some pictures..

  7. #7
    Official Bagista kmarney1's Avatar
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    Default Re: Shang Xia - Hermès' New Chinese Brand!

    It's a smart protective strategy for their business in China. You never know when the markets will shut down to Western entities. It gives the Chines some "ownership" of the brand.

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