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Shang Xia Brand

Shang Xia may be still making a loss after six years, but how can Hermes help the brand become sustainable in the long run?

In 2008, Hermes founded the Chinese high end lifestyle brand Shang Xia, which is the first of its kind for Hermes and its peers, and the first time a global luxury brand has committed to producing a Chinese high end brand catering for the Chinese market. Six years on, Shang Xia is still making a loss, but with reference to Shanghai Tang, a Chinese luxury brand which sold itself to world number two luxury group, Richemont, after six years, Shang Xia is a more unique offering. What are Hermes’ developmental strategies for Shang Xia, and how can it help the brand become sustainable in the long run?

Case advisor: 
Zhu Rui
Case writer: 
Cui Huanping
Keywords: 
luxury, lifestyle, branding