Shanghai Is Preparing For The Biggest Turning Point In History.

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Preparing for the biggest turning point in history.

According to the world clothing and shoe net, last July, it belonged to Shanghai, Italy.

The successful acquisition of a Alessandro Bastagli holding company chairman of A.Moda, the original creative director Raffaele Borriello and founder Deng Yongqiang, also passed away last year.

As a China

But it is completely taken over by Italians, and Shanghai's future trend is attracting unprecedented attention from the industry.

After basically completing the handover work after the acquisition and preparing for the next chapter, Alessandro Bastagli, creative director Massimiliano Giornetti, received an exclusive interview with reporters at the flagship store in Shanghai, Shanghai.

Why did you buy Shanghai?

When everyone wonders why a Italy enterprise has the courage to take up a Chinese luxury brand at a low level, Alessandro Bastagli told reporters that he saw the potential behind Shanghai's brand 20 years ago.

He disclosed that he had known Deng Yongqiang very early and had come into contact with the brand of Shanghai.

In the eyes of Alessandro Bastagli, Shanghai's iconic tunic provides more choices for business people at that time. "When we don't want to tie a tie or bow tie, Shanghai's Chinese tunic suit provides another choice for our formal occasions."

Shanghai was founded by Deng Yongqiang in Hongkong in 1994, not Shanghai.

As a peaceful gentleman who enjoys enjoyment in his mouth, and Deng Yongqiang, who has a special attachment to Chinese traditional culture, is determined to set up a fashion brand belonging to China and his own. When Shanghai combines Chinese and Western aesthetics into the style of design, it quickly obtains a loyal consumer in the market segmentation.

Under the careful construction of Deng Yongqiang, Shanghai was considered to be China's first modern luxury brand. In 1998, it was partially bought by the group, and it was completely bought by the group in 2008.

Subsequently, Shanghai gradually developed into a lifestyle brand through the introduction of accessories, home furnishing, customization and other categories, and opened a concept restaurant in Shanghai.

However, compared with other luxury brands, Shanghai is still too low-key to go downhill.

Although it has been established for 24 years and has stores in Japan, Singapore and the United States, 80% of its sales have come from Hongkong and have not entered the European market, with annual sales of about 40 million euros.

Therefore, some analysts believe that the sale of Shanghai may be related to the recent downturn in the performance of the group.

Alessandro Bastagli also admits this point. Shanghai's current situation in the industry is embarrassing. Because the quality can not keep up with the brand positioning, Shanghai has been seen as a luxury brand in the past when foreigners travel to Shanghai to buy souvenirs, and few consumers will buy Shanghai's handbags.

In order to make Shanghai better find its niche in luxury industry, Alessandro Bastagli invited Massimiliano Giornetti, a Italy designer with rich luxury experience, to join in after buying Shanghai.

Massimiliano Giornetti left the Salvatore Ferragamo for 16 years in March 2016. Now it lives in Florence, Italy. After taking office, it will mainly be responsible for Shanghai's product design, visual merchandising and creativity.

Reporter: can you talk to us about your feelings and intentions when you first contacted Shanghai brand? How did this brand move you?

Alessandro Bastagli: at first, I started contacting with the CEO group through the personal relationship with CEO Johann Rupert, and I met with Shanghai founder Deng Yongqiang in 90s.

In the course of the negotiations, Johann Rupert and I discussed many fashion related topics, such as the fashion industry and the problems and feelings of the luxury brands of the group. After that, I received the invitation from Johann Rupert to let me choose one of the brands that I most interested in, and could inspire more valuable brands, so I chose Shanghai.

People will wonder why we buy this brand, which is actually a decision made after many discussions.

I have always believed that fashion industry needs to provide people with an emotion or plot. With this emotional resonance, people will buy certain products.

As a Chinese brand, Shanghai has inherited many Chinese traditional culture. This proud traditional culture happens to provide this emotion for the market.

As early as 1996, when I first came to China, I was attracted by the 5000 years old traditional culture.

That's the case. I also believe that Shanghai can provide some different things for the whole fashion industry and global consumers. It can become a bridge connecting Eastern and Western cultures.

After making this decision, I flew to Hongkong, where I analyzed Shanghai's brand in half a year.

Through meeting with CEO and visiting shops, I gave some personal opinions on brands, such as what advantages and disadvantages, including how to enhance brand value and brand image. These have not received enough attention in the past few years, and Shanghai needs a series of re building.

Reporter: the difference between Chinese and Western fashions is great. What challenges will you face when you join Shanghai?

Massimiliano Giornetti: since the founding of Shanghai, the idea is to integrate traditional into modern. In my opinion, Shanghai is not only a brand, but also a kind of Chinese traditional culture value. This is one of the important reasons why I was attracted to Shanghai as a designer.

With the continuous development of globalization, consumers can buy many similar products online and offline, but the tradition of Shanghai has always been rooted in the brand culture, so that it has its own luxury, special and mysterious characteristics.

From a designer's point of view, Shanghai is more like a symbol of Chinese fashion, just like Chinese characters.

Therefore, although Shanghai is now being taken over by Italy investors, Italy designers and Italy production team, it does not mean that Shanghai will become a Italy brand. The soul and skeleton of the brand still have Chinese culture and characteristics.

So in my first series, I used a lot of Chinese elements.

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No matter who the consumer is, it must be conquered by products.

In an interview with reporters, Massimiliano Giornetti stressed that Shanghai's takeover by the Italy group does not mean that it will become a Italy brand completely. What he wants to achieve is to combine traditional Chinese elements with aesthetics in Italy and find the emotional link between the two cultures, so that Shanghai can become a representative Chinese luxury brand.

At present, Shanghai Massimiliano 2018 Giornetti summer and summer advertising series has been officially released, and a series of products have also been launched.

Massimiliano Giornetti said the series was inspired by the international lifestyle of founder Deng Yongqiang. In this series, he used a lot of silk fabrics and bright colors to highlight the brand characteristics of Shanghai. These two elements play an important role in the aesthetics of China and Italy.

However, the 2018 spring and summer series in Shanghai is only a pition series after the Massimiliano Giornetti is formally accepted.

Massimiliano Giornetti believes that the past Shanghai has no other classic and symbolic products except for the Zhongshan suit. So his first task is to make clear the brand positioning of Shanghai, to find the colors and elements that can represent Shanghai. The purpose is to create a language system that belongs to Shanghai so that consumers can recognize the products from Shanghai in the future before they see the brand of Shanghai.

Reporter: over the past year, a number of luxury brands have changed hands. But there are people in the industry who believe that acquiring a brand is very simple. But it is not easy to manage well, but Shanghai's performance in recent years is not very good. What is your bottom line in Shanghai?

Alessandro Bastagli: now that more and more Chinese enterprises and investors are targeting some luxury brands abroad, why can't we turn Shanghai into an international fashion brand? I think this may have a positive impact on the whole Chinese fashion industry. We need a brand that can display Chinese culture to the global consumers, so it is a good opportunity for us to take over Shanghai.

There are many French brands, Italy brands and American brands in the luxury industry. Why can't we have a high-end Chinese brand with both quality and fashion.

Many of the details of our new season's products are full of Chinese characteristics. Combined with Italy's exquisite craftsmanship and sophisticated luxury production system, Shanghai will continue to develop in an independent Chinese brand in the future.

Reporter: how will you make Shanghai more internationalized?

Alessandro Bastagli: the creativity and quality of products is the most important core.

Only after the design, taste and quality attract customers to prove our strength can we promote the brand globalization further.

In fact, this is why foreign capital is needed.

China's high-end fashion brands want to enter the international market. Shanghai is the most representative. We will plan to open stores in such international metropolises as Milan, London and Paris.

In order to better improve the quality of Shanghai products, we have begun to gradually shift the production line of Shanghai to Italy. After all, "Italy made" is a symbol of high quality to a large extent.

But for home products that require professional Chinese technology, the production area will remain in China, which is also a product quality requirement.

Reporter: we find that the overall image of the brand in Shanghai Tang2018 spring and summer series is quite different from before. What is your conception after contacting Shanghai Tang? How will it be positioned?

Massimiliano Giornetti: in fact, the design of the 2018 spring and summer series should be regarded as a pitional season.

After taking over Shanghai, I began to think about whether there was a connection between Chinese style and Italian style. Then I discovered that silk existed in two different cultures.

Silk is a symbol of history in Chinese culture. In Italy, silk is used in many handicraft products, so in this series, silk bears the brunt of becoming the protagonist.

Through this material, I can well integrate the style and handicrafts of Italy, as well as the elements and characteristics of Chinese style.

There is also red, which may also be related to my previous work experience, bright colors like a symbol, or a language linking Chinese and Western cultures.

Alessandro Bastagli and I also talked a lot about brand style and positioning. We all think Shanghai has a lot of potential to be excavated and developed.

The reason why I think this brand is different is that the uniqueness of Shanghai lies not only in design but also in brand DNA.

In fact, it is not easy for me to rebuild a brand image.

The brand has already formed a specific image at the beginning of its creation, and this impression is hard to be overturned.

For example, Shanghai's most famous jacket, from style, color, line to texture, these elements are very brand style, so I will not completely abandon these existing characteristics.

Reporter: how to attract new consumers while allowing the original consumer groups to accept a brand new Shanghai?

Massimiliano Giornetti: now that this society is developing very fast, the demand of both the market and the consumer is changing at any time. This makes me realize clearly that the characteristics of the millennial generation may not be able to control Shanghai.

As a creative director, my job is to create a brand image.

This image is not intended to attract a particular customer group, such as the millennial generation. The focus is to distinguish Shanghai from other brands.

Therefore, I prefer to use the word "innovation" rather than the pformation of brand style.

Innovation means attracting more new consumers instead of rejecting the original consumer groups, and the process of innovation will be more natural.

For Shanghai, what we need now is to further define the target consumer groups and market segments, and determine which positioning is most needed by brands.

And when we move the production line to Italy, we want to better integrate two cultures and styles. As designers, we should not only design a series of products, but also convey a quality of life.

Reporter: will you create a young line for the younger generation of consumers in Shanghai? Are you considering the invitation of celebrity endorsement to expand brand influence?

Massimiliano Giornetti: No.

We aim to create unique products for target groups in Shanghai, so as to better reflect brand value and brand image.

Both Chanel and Gucci were very successful, though they did not create young lines for young consumers, but there was no shortage of young consumers.

I believe that as long as the product is excellent enough and unique enough, it will attract the same aesthetic consumption groups.

Alessandro Bastagli: CEO in the Tom Ford era is a friend of mine. I also asked him a similar question, for example, why not create Gucci Sport, Gucci Jeans and other series? He replied, "Gucci will have sports products and produce jeans, but there will be only one brand, that is,"

I strongly agree with his insistence and loyalty to the brand rather than the dilution of the core brand value of the brand.

Reporter: in the marketing aspect of Shanghai, what innovations will there be in the future? According to the difference between Chinese and western social media attributes, how will you enhance Shanghai's reputation in overseas areas?

Alessandro Bastagli: I think product attractiveness is the key to a brand's concern for young consumers. This is why I invite Massimiliano Giornetti to be a brand designer.

I believe his taste and design ability can catch the appetite of young consumers.

Today's young consumers are looking for newer, more fashionable and personalized products, and the design of Massimiliano Giornetti has always been able to meet their needs.

In addition, we will attract their attention through the Internet and social media, and establish a closer relationship among young consumers.

I believe that excellent design and targeted investments can attract more young consumers.

Massimiliano Giornetti: before we launch a new round of marketing in Shanghai, we need to reset some rules and brand directions. For example, we should not be too extreme and overexpose our brand changes, because these will make the brand lose its own DNA and excessive consumption brands.

In the future, Shanghai will focus on innovation and creativity in the dissemination of social media.

To better let Italy consumers know Shanghai, we held a series of preview activities in Milan fashion week a few weeks ago. This is the first time since the founding of Shanghai in Milan fashion week, and even for the first time in Asia.

Because we do not want to force consumers to buy behavior at the very beginning. This is a gradual process. We start again to create a landmark product of Shanghai. We show you that Shanghai is not only a brand, but also a way of life.

Therefore, through digital dissemination and advertising, we hope to convey a kind of Shanghai values, aesthetics and cultural concepts to consumers. We need to attract more than the Millennials. Instead, we need to create a representative, highly recognizable product that allows consumers to recognize Shanghai products before seeing Shanghai Logo, such as the use of unique elements such as color and metal.

My ambition is not to catch up with the trend of the times, not to blindly conquer the millennial generation, but to maintain uniqueness and scarcity.

As we will move Shanghai's production line to Italy, in China, we will employ more professional Chinese teams and influential stars and bloggers to endorse and help Shanghai conduct more targeted publicity. So besides Instagram and Facebook, we also attach great importance to the marketing of WeChat and micro-blog platforms. At present, everything is proceeding according to plan.

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Reporter: electricity providers occupy a pivotal position in the field of Luxury Retailing. Will Shanghai Tang develop its own website for online sales?

Massimiliano Giornetti: people were skeptical about the electricity supplier many years ago, because luxury goods store experience is very important, but now the situation is very different. Online sales have become an important part of the sustainable development of luxury brands.

Consumers are more willing to try their own clothes in their private space, such as home. If they are not satisfied, they are also very convenient to return.

Therefore, in the future, Shanghai will also invest on line, including electricity providers.

As a matter of fact, we are already doing this. Because Shanghai has belonged to the former peak group, all the electricity suppliers are closely linked to the group. In the past 6 weeks, we have completed the split of all business and group in Shanghai.

When everyone is not optimistic about this acquisition, we are ahead of the task, which gives us more confidence in the future.

Now that Shanghai has become an independent brand, our focus in the future will be to create a new Shanghai brand image and attract more consumers.

Not only in China, but also in the international market that belongs to Shanghai.

Shanghai is not only a brand, but also a kind of Chinese traditional culture.

At present, Shanghai is at the crossroads of pformation and pformation.

Alessandro Bastagli said it would inject a sum of money into the brand, but did not disclose the exact amount.

The goal is to build Shanghai into a more influential global luxury brand.

In Alessandro Bastagli's blueprint for the future of Shanghai, it is divided into three steps, including the overall increase in product prices, the shift of production centers to Italy and the formal entry into the European market.

At the same time, Massimiliano Giornetti has begun to create a brand new image for Shanghai, in addition to its products, including the store style of the brand line, and the creative marketing in the digital field.

Alessandro Bastagli believes that as a rare representative Chinese luxury brand in the industry, Shanghai will have great potential in Europe. In the next two years, the flagship store in Milan and London will be opened in Shanghai and will aim at the millennial generation, the young consumption from 1985 to 2000.

Data show that young consumers account for 1/3 of the global luxury consumers.

However, Massimiliano Giornetti has made it clear that it will not deliberately follow the preferences and needs of young consumers, but instead hopes to impress consumers through Shanghai's unique brand culture and creativity.

According to Alessandro Bastagli, the group's revenue growth this year is expected to reach 15% to 20% after joining the brand matrix of A.Moda group in Shanghai.

Reporter: Shanghai is about to open a new chapter. Will you change the image of Logo and store in Shanghai?

Massimiliano Giornetti: Yes, when a brand is changing, as a designer, I will make some adjustments to the brand.

But as I said before, what we need to do after taking over Shanghai is not a complete change, but a change.

Therefore, I will excavate more landmark elements on the basis of Shanghai's original basis, for example, from the shopping bags in Shanghai, and turn them into the iconic green of Shanghai, so that consumers will realize that this is from Shanghai after seeing the green shopping bags in the future.

In the final analysis, what I want to create is a brand new Shanghai language system. The language here is not literally, but Shanghai's own brand DNA.

In addition to innovation in product and creativity, we will also focus more on shop location, building and decoration design, because the image of the shop is also a platform for brand soul.

We are studying how to inject elements that conform to the aesthetic and taste of contemporary consumers in the new store design under the premise of retaining the brand's Chinese characteristics.

Reporter: so is there any specific expansion plan for Shanghai? What is your expectation of Shanghai's future performance? Is there a specific goal set?

Massimiliano Giornetti: I very much agree with what Alessandro Bastagli once said, some people buy luxury goods out of need, but others are out of longing and dream.

Demand refers to the needs of everyday life of consumers, but fashion and luxury goods are more thirst for them. They have the magic to change the daily life of consumers. We hope that Shanghai can also have such a power.

In the next 24 months, Shanghai will open 2 new stores in Milan and London, and we are also looking for suitable locations for new stores in China. The purpose is to introduce the new Shanghai to consumers at the right time.

In addition to opening stores, we will also contact consumers in more ways, such as setting up flash shops and collaborate with other brands or designers, thus increasing Shanghai's exposure to the world and the industry.

Alessandro Bastagli: in addition to opening new stores, we may also close some stores.

In addition, our adjustment to brand supply chain and product design will also lead to some one-time cost increase. Therefore, we expect that this year's performance will remain at last year's level. We need some time to reshape Shanghai.

At present, the clothing and accessories production line in Shanghai has been pferred to Italy, sharing the same factory with Chanel, Dior and other top luxury brands. Although the cost has increased, the improvement of product quality is conducive to the long-term development of the brand.

It will take only 5 years for Shanghai to become a high quality luxury brand. China should also have its own luxury brands to participate in global competition.

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