Shangxia, which means up and down in Chinese, is created by an art designer Jiang Qiong’er and is backed by French luxury corporation Hermes in 2008. Different from most fashion products that Hermes sells, Shangxia is selling traditional Chinese culture in the form of art. The promotion of culture is reflected through the name, which implies the coexistence of modern and traditional cultures, the few but every delicate crafts and the traditional yet also modern design of stores. Culture is the core value of Shangxia.
When Hermes invested in Shangxia, it did not expect to gain much returns in short terms. Hermes want to position a brand of elegant taste and hand-made luxury and plant the core value of culture and art deeply into customers’ minds as it always does. Hermes builds the power of brands to attract wealthy customers and differentiate itself from other luxury brands which thirstily expands the number of store to pursue sales.
The customers segments are located at upper class in China, those who not only have enough wealth but also have elegant tastes of art and deep understanding of traditional culture. Many Asian countries such China and Japan value traditional culture as an crucial part of national identity. Owning a Shangxia product becomes a symbol of real richness.
References
Day, Peter. “The Designer Creating a New Chinese Brand.” BBC News. BBC, 09 Oct. 2013. Web. 14 Nov. 2013. <http://www.bbc.co.uk/news/business-24038071>.
Song, Sophie. “Backed By Hermès, Shang Xia, A Luxury Brand Influenced By Traditional Chinese Design Elements, Is Expanding Overseas.” International Business Times. International Business Times, 21 May 2013. Web. 14 Nov. 2013. <http://www.ibtimes.com/backed-hermes-shang-xia-luxury-brand-influenced-traditional-chinese-design-elements-expanding>.
Wendlandt, Astrid, and Pascale Denis. “Hermes Tests European Appetite for Its Young Chinese Brand.” Reuters. Thomson Reuters, 11 Sept. 2013. Web. 14 Nov. 2013. <http://www.reuters.com/article/2013/09/11/us-hermes-shangxia-idUSBRE98A11X20130911>.