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China’s luxury brand Shanghai Tang changes hands, gloomy sign for the Chinese pioneer in fashion

(People's Daily Online)    17:09, July 05, 2017

(Photo/Official website of Shanghai Tang)

As one of China’s first luxury brands, Hong Kong-based Shanghai Tang has been sold to an Italian fashion entrepreneur, as the Chinese brand struggles to win more market, fighting a tough war against other big, popular names.

The brand was sold to Italian fashion entrepreneur Alessandro Bastagli and private equity fund Cassia Investments Ltd, according to a statement released by its previous owner the Swiss luxury goods group Richemont on July 3. The statement did not reveal further details of the deal.

It reportedly marked the first sale of a luxury brand of Richemont since 2007. It also followed the group’s pledge to fix or sell underperforming businesses, Bloomberg reported.

(Photo/Official website of Shanghai Tang)

Shanghai Tang was acquired by Richemont in 2008. The brand was ranked 10th on the top fashion brands ranking for Chinese women by the Hurun Report, while it did not make the top 10 ranking list for men. Both rankings were led by Western brands, such as Chanel, Dior, Gucci, and Giorgio Armani.

The brand has been criticized for its excessive pursuit of traditional Chinese characters in design, which may be out of step with the growing number of Chinese customers who seek different elements in fashion.

Shanghai Tang prides itself as China’s pioneering luxury brand and aimed to be the global curator of modern Chinese fashion. The brand started as a bespoke tailoring atelier in 1994, drawing on the legendary craftsmanship of Shanghai’s traditional tailoring and rich fabrics to craft impeccably cut clothing, according to the brand’s website. The brand currently has 48 boutiques across the world.

However, the original Shanghai Tang location in Hong Kong closed in 2011 due to high rent. It also closed its New York City location, according to Bloomberg.

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Jiang Jie, Bianji)

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