China is the second largest market for luxury goods after Japan and forecasts estimate that it will become the world's top consumer of luxury goods in 2015. At the moment it is mainly the western luxury brands, which profit from this incredible growth, but it won't take too long until the Chinese and also the global market is ready for China's own luxury brands.
Brands from China still struggle to get rid of the copy, mass production and bad quality image. Especially when it comes to luxury goods, consumers in China and in other countries favour European brands with their long history and global reputation. But there is also a sign that buyers in China start to seek out brands, which have their roots in their own culture. Once established in their home country such brands would have a huge potential to become global brands, merely due to the size of their domestic market.
Shang Xia might be a very promising candidate. Shang Xia opened its first store in 2010 in Shanghai and plans to open another one in Beijing and Paris soon. Their products range from clothing, shoes to furniture and ceramics. Already visible throughout all their lines is a clear message of a minimal design, a self-confidence of its Chinese heritage and a finesse of its traditional production. Indications, which could make it a very successful luxury brand.
However, the main reason why I see much potential in Shang Xia to become China's first global luxury brand is the French company, which is part owner of Shang Xia: Hermès, one of the world's most desirable luxury-goods brands and also one the most profitable one. The experience and Hermès' own brand will definitely help Shang Xia to enter the global luxury market and I believe that also consumers in Europe and the United States are ready for a Chinese brand.
