Hermès Creates Bespoke Brand for China
Financial Times July 19,2010
Hermès is set to launch a new brand in China in September, in an attempt by the French company to win more customers in the world's second-largest luxury goods market.
Torsten Stocker, analyst at Monitor, the consultancy, said that while Hermès' strategy to make the brands separate made sense, how it did this would be a challenge.
"The consumer market is very small in China. People will very soon know that Hermès is behind Shang Xia. But it can be a good thing.
"I believe people will tend to have more trust in Shang Xia because of their trust in the quality and craftsmanship of Hermès," said Mr Stocker.