This spring, Hermes plans to launch a new brand, called Shang Xia (meaning “topsy-turvy” in Mandarin), in the lucrative Chinese market.
It’s an interesting move from Hermes, who generally tends to buy all or part of existing brands.
Shang Xia will include ready-to-wear and decorative arts inspired by Chinese culture and traditions of craftsmanship.
These are to be made using Chinese raw materials and artisanal know-how, Hermès said.
Shang Xia’s creative director is Qiong-Er Jiang, daughter of a noted Chinese architect.
According to Patrick Thomas, President of Hermes International, the new brand will be tailored for the Chinese market where Hermes lags behind its competitors.
The objective of this move is to offer cheaper products, as well as capitalising on the growth of the luxury market in the country in 2010.
The brand will also be distributed in Paris in one of the large department store.
This is the first time the fashion label will get in from the ground up, so it’ll be fascinating to see the results.
it is cool to bring this brand to Chiina.
it’s interesting. But is there the New China?
I think it is a gross marketing mistake. First : Wealthy Chinese consumers want the real, genuine French product, made for westerners, not a lower category product made for Chinese consumers. Second : making “cheap” prices is an even bigger mistake, because, in the mind of the Chinese consumer, and according to a China Elite Focus survey made in 2009, “an expensive price means high quality and high social status”. How Hermes could have made such a mistake ?
I’m in complete agreement with Patrick Markus. This does not seem like a smart move. They (the Chinese) already have “China”. They want France, not a watered-down version.
I must point that you are both wrong. Chinese are temporary fascinated by all that is coming from the outside, but the core of chinese psyche is linked, very strongly to what is Chinese. That is already seen in the ultra rich (Hurun Report starts to talk about it slowly)… Once Chinese get really confident about themselves, and it’s really very soon, they will be spending heavily for this kind of things (and at the same time they will be driving, as they just do now the global luxury market). That’s just the way it is. Hermes is very smart. And I do belive in the next 10 years, many will follow with exactly the same move. We will see also plenty of Chinese brands bought for example by LVHM (yes, that’s obvious, of course)…
it’s so interesting to have people saying hermes new move a wrong one or right one……are these people the coe’s of the co? who is to say it’s right or wrong at this point? you don’t think that for a brand like hermes would studied alll these reports and do their own studies before making this move??? and interesting enough which i’ve experienced all my life to have cauasians telling or studying what us, locals chinese wants…..but let me let you what we want, once we digest the fashion trend, brand names and quaility of good products, we want good pieces of items that we don’t have to sell our house to buy and fashion is for everybody……….so we are wlecoming the new shang xia to come to china with open arms and let time tell what is right or wrong my friends
So Bad,, they only want more money, I can not belive that Hermes is going to do such a bad thing, Chinisse people wants european brand for the quality, , and now they are going to make prducts in China???? it’s so funnyyyy,,,,,,
Chinese consumers are as diversed as the varieties of wine and cheeses in the world. There is the top elite, the affluent business-owners, brand-consious white-collars, the young luxury wannabes etc. All of them grew rich only in the last 5-10 years. Luxury is a blank slate to many here. And I think Shangxia is sort of like a stepping stone, non-intimidating invitation to appreciating fine craftmanship and cultural pride. If not, imitation product LV or Hermes can run rampant in China. And people will have a false idea that bad sewing and cheap patent leather are the norm of fine luxury.