martes, 28 de junio de 2011

Shanghai Tang. Strategic Recommendations

SHANGHAI TANG was created by David Tang in 1994. It has been the pioneering China luxury lifestyle brand with international presence. With its mission as the global ambassador of contemporary Chinese Chic, Shanghai Tang tries to showcase the best of Chinese heritage.
Shanghai Tang has an international network of 40 boutiques in the world's most prestigious shopping districts, including Shanghai, New York, Paris, London, and Madrid.

Shanghai Tang bases its brand identity on interpreting Chinese culture and craftsmanship in 21st century, utilizing the best of Chinese materials from luxurious Chinese silk, the finest Mongolian cashmere or the precious Chinese jade.  (http://www.shanghaitang.com/)
Shanghai Tang has a reasonable success in Asia but it's not working for European nor American luxury consumers, but for tourist shopping.

Shanghai Tang offers ready-to-wear for women, men, and children, as well as accessories, home ware and lifestyle experiences through lounge music collections and the Shanghai Tang Café that offers a modern Chinese cuisine experience. (sic)

Our view is that Shanghai Tang has an incoherent positioning, offering losts of useless accessories that can me you confused about where you are, a luxury store or a chinese bazar. Besides, we think that it's not clear the legitimacy Shanghai Tang has for craftsmanship, since they have a poor value chain and a doubtful knowhow.

Shanghai Tang past mistakes:


On the other hand, LuxuryCompanies likes:


We also like what other companies have made interpreting a sophisticated and aspirational asian heritage (www.louisvuitton.com/)



LuxuryCompanies strategic recommendations for Shanghai Tang:

- The best by far recommendation we suggest is to hire an international fashion designer able to interpret the codes and values of the brand. John Galliano is not the best choice but whether the public and legal proceedings have finished it could be a challenging and risky option to analyze.
- We also suggest Shanghai Tang to cut the portfolio, to take ownership of the value chain with a verticalization strategy,  choose more suitable prescriptors and leveraging on its chinese heritage broadcast a global and international experience

1 comentario:

  1. Very very interesting!
    Do you know Shanghai Tang just launched a collaboration with Nespresso???

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