Ron Sneijers

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Ron Sneijers
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http://blog.sneijers.net

Assignment 1 - Object of the future

http://blog.sneijers.net/shanghaitanglogo.jpg

http://blog.sneijers.net/uploaded_images/shanghaitangfashion-706212.jpg

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Shanghai Tang is ready to become China's first great luxury brand. Forget about cheap textile and DVD players. This is the next battlefield for global competition.

The four biggest emerging markets (according to The Economist's research) China, India, Brazil and Russia are standing at the door steps to capture a stake in the haute couture apparel industry. Emerging fashion designers especially in Asian countries like China and India are getting lots of attention from the outside world; among them some are seen as the next rising fashion designer stars.

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The haute couture apparel industry is for many years dominated by brands from the Western world. Well known brands like Gucci, Versace, Louis Vuitton, Armani, Prada, etc. are setting the pace in this high-end industry segment. In the upcoming five to ten years I foresee a major shift in fashion style and fashion brands that are dominating the industry. Along with the shift in the global arena were the world is becoming more integrated and interrelated with each other. As a result a new high-end apparel industry playing field will emerge.

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Shanghai Tang is following the tradition of established luxury labels associated with a specific national aesthetic. Brands like Armani, Gucci, Prada, and Versace have long symbolised streamlined Italian style. Chanel embodies Parisian elegance. With its current booming sales, Shanghai Tang has the chance to become the Chanel of China in the years ahead of us.

The impact of creating the first Chinese luxurious brand that can make it abroad will not only affect China and the playing field of the apparel industry. It will move beyond that, it will be the first brand followed by an arsenal of new brands that will penetrate into established and mature Western markets in any industry. For example, Haier will set ground in the electronics / white goods industry and Huawei in the telecom industry. Furthermore, creating the first Chinese luxurious brand will be a stimulus and proof for all other emerging countries that brands from developing countries can make it abroad in a similar time slot.

Aforementioned reasoning is supported by all authoritative news and information companies around the world that have spotted the rising fashion star Shanghai Tang as well. (See reference list)

Growth

Worldwide sales have grown 43% in the last year (2005), and American sales (at boutiques in New York and Honolulu) are up 50%. In 2005, new stores opened in Zurich, Shanghai, Tokyo, and Bangkok. Currently, two more stores, in Beijing and Milan, are set to open in 2006. Shanghai Tang expects to have 30 stores by the end of 2007.

References

• BBC - Low-cost China eyes luxury future
• Brandchannel - Shanghai Tang firmly tongue in chic
• BusinessWeek - Inspiring Shanghai Tang's Fashions
• BusinessWeek - Richemont in a Rut
• BusinessWeek - Shanghai Tang: A Taste of China
• CNN - Designing a global brand
• Daniel W. Drezner - The intriguing rise of Shanghai Tang
• Fast Company - Fast Talk: China Rising
• Fast Company - The Gucci Killers
• Fast Company - The Little Red Book of Branding
• Gridskipper- Shanghai Tang Ginza
• International Herald Tribune - Expats in Hong Kong design new careers
• International Herald Tribune - Shanghai Tang cheers a decade on the scene
• New York Times - New Yorkers Embrace a Little Shanghai Specialty
• Shanghai Tang Corporate webpage
• The Economist - Climbing back
• The Economist - Coming of age
• The Economist – Grow up
• Time Magazine - Made in China: Beware the Dragon
• Time Magazine - Made in China: Fashion Boomerang
• Wikipedia Shanghai Tang

Ron Sneijers March 17th, 2006