Can Shanghai Succeed In Pforming High-End Luxury Goods?

Accompanied by Hongkong three months ago

The news of the death of tycoon Deng Yongqiang was founded by Deng Yongqiang.

Brand Tang (Shanghai Tang) once again appears in the eyes of consumers.

Once regarded as the first in China.

Shanghai, which has been released from the world's second largest luxury group in July this year, has been in the doldrums.

Recently, its new boss, Alessandro Bastagli, finally couldn't sit still.

According to the world clothing and shoe net, Shanghai hired Massimiliano Giornetti, the former creative director of Ferragamo, as the new director of the design. At the same time, the main production was pferred to Italy to improve the overall price positioning of the brand and expand through boutique to European countries.

In addition, in the 2018 spring show, Shanghai also cooperated with model Chen Yu and he Cong.

This series of initiatives is to make Shanghai return to the brand positioning of high-end luxury goods.

The brand, which was established in the early 1994, was the top hand customization of the "old Shanghai style" at the beginning of its creation. At that time, the brand was popular with European and American people, so some fame was also broken in the international market.

Then in 1998, founder Deng Yongqiang sold most of the brand equity to the world luxury group, the peak group. Until 2008, the group completed the acquisition of Shanghai with a 100% stake.

But as an international luxury group, after taking over Shanghai, the brand has developed from a single women's wear line to a large number of men's wear products and all kinds of luxury products of derivative products. At the same time, in line with westerners' aesthetics, a large number of Western elements have been added to the original pure Chinese style design, and have been pformed into Chinese and Western design styles.

In July of this year, due to its declining performance, the peak group sold Shanghai to Alessandro Bastagli, a textile merchant in Italy.

Although it has not disclosed its sales for nearly half a year, Bastagli said the brand known for its cheongsam and Chinese collar style is not profitable at the moment.

As a result, Bastagli began to have the idea of brand pformation.

He said that only 15% of consumers in Shanghai are younger than 45 years old. As a high-end luxury goods, its consumers must be mostly 25-45 years old. How to reduce the age of customers is an urgent problem nowadays.

Alessandro Bastagli

Regarding the new design director, Bastagli initially considered the Chinese designer Alexander Wang, but considering the fixed Chinese style characteristics that had already been pferred from the production factories and brands, he thought a guidance from Italy might be more effective.

As the former design director of Salvatore Ferragamo, as of March 2016, Giornetti had worked in Ferragamo for 16 years and left Florence as the activity center, which just satisfied the expectations of Bastagli.

"We plan to open two boutiques, most likely in Milan and Paris," said Bastagli. "We are also looking for wholesale business in Europe, and will aim at the US, Japan and Korea markets later.

Besides, we also have some connections with shopping centers in Dubai.

But unfortunately, the relationship between China and South Korea is unstable, and the South Korean market may be in a downturn, but we hope to recover in the near future. "

Up to now, 90% of the shops in Shanghai are located in China and its surrounding areas. Bangkok, Singapore and the Mandarin Oriental Hotel in Miami have a branch.

About 80% of its sales come from 8 stores in Hongkong.

Whether it is sold to foreigners or sold to Chinese people has always been an important factor limiting the globalization of the brand.

As for this pformation, Bastagli has repeatedly stressed that quality improvement is more important than improving business volume.

He explained: "in the past few years, many foreigners came to Shanghai to buy bracelets and other trinkets, or some distinctive women's clothing. Most of them regarded the brand as a souvenir that came to China to buy, a very expensive souvenir, but few people bought the bag, which is very much related to the quality of their customers who are not satisfied with the expectations of the brand."

At the same time, he also revealed the ambition of brand development. "As long as five years, Shanghai can become a high quality luxury brand with affordable prices.

In the future, we will be equal to Chanel, Dior and other brands in terms of quality, while we can not compare with them in terms of brand awareness, but at least we will produce more or less at the same factory.

Bastagli said.

From the very beginning, the birth of the Chinese mainland to the pformation of the Swiss peak group and the pformation between China and Western countries will finally be repositioned in the hands of an Italian. This luxury brand with Chinese characteristics as its main brand has been ups and downs. However, Shanghai, once considered to have lost its original look, is still uncertain whether the quality can be renewed.

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