Abstract
Shang Xia (means 'Up' and 'Down' in mandarin) is a Chinese luxury brand that was born from a chance encounter between Ms Jiang Qiong Er, a Chinese designer with a double understanding of the French and Chinese cultures, and Mr Patrick Thomas, CEO of Hermes, a French group known for their exquisite silk scarves and supple leather bags such as the 'Kelly' and the 'Birkin' handbags. The journey of Shang Xia started in 2008 with a clear mission to create a new Chinese luxury brand that will be well rooted in the 5,000-year old and rich history of China. Ms Jiang Qiong Er dreamt about creating such a brand for a very long time and saw her dream come true thanks to the generous financial support from the Hermes group. Naturally she became the CEO of Shang Xia and also the Creative Director. The company opened its first store in 2010 in Shanghai. At that time, the event was such a novelty for the luxury industry that it attracted worldwide attention, and the media quickly relayed the news. Shang Xia products range from homewares such as tea sets and porcelain bowls, to furniture and ready-to-wear. It is a lifestyle brand that offers products that are carefully crafted from the finest and best raw materials with traditional techniques and a modern twist. The brand is still very young but it already has a solid foundation and a nice, very credible story to tell. Will it become the new 'Chinese Hermes'? With such parents and brand DNA, it is only a matter of time that it will happen! This case study presents in details the development of Shang Xia since its inception and includes teaching notes that discuss strategies for developing a new luxury brand.