Ex Peak Group Sells Its Luxury Brand Shanghai

Industry integration is in a turbulent period. Swiss luxury goods group

Luxury brands are being stripped of their achievements.

According to the world clothing and shoe net, the famous brand has already made China's luxury brand.

Shanghai Tang is sold to a Italy enterprise.

The group said that the brand, which was founded last week by Deng Yongqiang, a wealthy businessman in Hongkong, was sold by a company controlled by Alessandro Bastagli, chairman of A.Moda, a garment manufacturer in Italy, and is expected to be completed in June 30th.

The peak group acquired some of its shares in Shanghai in 1998 and acquired all of its shares in 2008.

Until now, the company did not disclose the specific price of the paction, but said it would not have a substantial impact on its assets and liabilities, cash flow and its performance in the fiscal year ending March next year.

Alessandro Bastagli is the president of Finalba SpA holdings, and the president and chief executive officer of Lineapi Italia Italia and A.Moda SpA, which is responsible for the production and distribution of the campaign clothing series of Everlast, Dimensione, Lineapi and X.

Alessandro Bastagli founded the clothing manufacturer A.Moda in Florence in 1978.

The partners are private equity fund Cassia Investments and a UK investment fund.

Alessandro Bastagli said he is building a new creative and management team for Shanghai.

Shanghai was founded in 1994 by Deng Yongqiang in Hongkong. It incorporated Chinese and Western aesthetics into the design style. It was once regarded as the first modern luxury brand in China.

At first, Deng Yongqiang found 9 senior tailors who moved to Hongkong from Shanghai, investing HK $120 million in the first Shanghai special store in central to customize Chinese clothing for celebrities in Hongkong, so that the old Shanghai style is deeply rooted in the hearts of the people.

After the acquisition of Shanghai by the peak group, the brand has been greatly pformed. By expanding accessories, home furnishing and customization, Shanghai has become a lifestyle brand, and Shanghai has opened a concept restaurant in Shanghai.

At present, Shanghai has 32 stores all over the world.

As a minority of China's luxury brands, Shanghai has no shortage of global market attempts.

According to WWD, in September last year, Shanghai issued the first environmental protection series consisting of seven works, all of which were made up of recycled textiles in the internal supply chain.

The price ranges from 4600 Hong Kong dollars to 16000 Hong Kong dollars.

In 2013, the brand signed an exclusive global licensing agreement with Inter Parfums Inc. for 12 years to develop, produce and distribute perfume and beauty products named after Shanghai.

Inter Parfums Hongkong branch is managing the beauty products of the brand.

The sale of Shanghai may have something to do with the recent downturn in the group.

In the 2016 fiscal year ended March 31st, its net profit of Cartire, IWC, Van Cleef & Arpels and other jewellery watches brands fell 45.6% to 1 billion 210 million euros, while sales decreased by 3.9% to 10 billion 650 million euros.

The results showed signs of improvement from the second half of the year, thanks to the recovery of the Chinese mainland and the US market.

The summit group is in the key phase of digital pformation.

It is reported that the group began to recruit large numbers of digital technology talents recently. Johann Rupert, chairman of the group, intends to use digital platforms to boost its performance.

At the same time, the group plans to reduce costs through business tightening, layoffs and bad investment, so that the brand can focus on jewelry watch business.

The sale of Shanghai can be seen as part of the company's liquidation of its assets.

Earlier, the group had planned to sell its French luxury leather goods brand Lancel, which has sluggish performance.

It is noteworthy that in the quarterly earnings report of the group, there was little mention of Shanghai's performance.

The brand is listed as "other brands" with Chlo, AzzedineAla, a and Lancel.

Some analysts believe that Shanghai has encountered an embarrassing situation, the brand stores to reduce the expansion plan has been even more remote.

In 2013, there were 7 stores in Shanghai, and there were rumors that the brand would be abandoned by the group.

During the 2008 Beijing Olympic Games, the chief executive of Shanghai, Lei Fu Yi, announced that she would take the opportunity to promote Shanghai and set up 50 branches in the world. However, her propaganda strategy was criticized. Analysts said that Shanghai's strategy had obvious loopholes, foreign achievements were dismal and frequent, and the sales focus should be placed in China. However, the propaganda strategy was just the opposite. The brand emphasis was propagandized abroad, leading to no favorable market position at home and abroad.

With the development of China's local luxury brands, Shanghai is no longer the only luxury brand in China.

Xia Zi Chen and Shang Xia have also attracted much attention in the world as a rising star.

In recent years, Shiatzy Chen has been seeking expansion in the world. Its brands are open in California, London, Paris, Singapore and the Middle East.

The brand's annual turnover is about $80 million, and it is estimated that by 2020, the number of brand stores will grow from around 70 to 170.

In 1978, Xia Zi Chen dress was established and has become a comprehensive product with advanced women's wear, senior men's wear, senior accessories and senior home accessories.

In 1990, the studio was set up in Paris. In October 2001, it became the first Taiwan fashion brand to enter Europe. In March 2003, Shanghai became the first stronghold of Xia Zi Chen to enter the mainland market.

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In 2015, the head of LVMH group, Bernard Arnault, was born in the front row of Xia Zi Chen show, and now Antoine Arnault, director of group marketing.

At that time, there was an analysis and forecast that LVMH group might be interested in Xia Zi Chen because LVMH was the only group company that had no brand in China.

At that time, Hermes had the top and bottom brands, and the group had Shanghai brand, and Kai Yun group had jewellery brand Qeelin.

Jiang Qiong, the designer of luxury brands in China, was founded in 2009. She is currently the chief executive officer and brand art director.

After her creation of high-end lifestyle brands, Hermes group bets that Chinese consumers who are keen on luxury goods will have more and more demand for $4600 bamboo handbags and $100 thousand worth of Ming style furniture, so they will inject capital into the brand so that they can become the brothers of Alma's brand.

According to the world clothing and shoe net, the turnover in the first half of 2015 is 77% higher than that in the previous year. "Up and down catch up with the last bus of the last high-end brand business mode, and can not be eliminated in the next era". When Jiang Qionger accepted the fashion headlines, he said earlier that although the profits were still up and down in 2016, the latest move was put forward, that is, to enter the electricity supplier.

Shanghai, once the most small and distinctive brand of the group, gained global attention by its different status.

However, as Chinese design begins to develop its own style from creativity and market, more and more Chinese luxury brands begin to win the favor of global consumers with different styles. At the same time, they are favored by large luxury goods groups, and the competition among Chinese local luxury brands will become more intense in the future.

After today's announcement, the group's share price has risen by nearly 1% to 79.75 Swiss francs per share, with a market value of about 41 billion 600 million Swiss francs, or about $43 billion 100 million.

More interesting reports, please pay attention to the world clothing shoes and hats net.