Exor together with Hermès: quite an unexpected partnership. The Agnelli family’s holding company has invested 80 million euros to take over the majority shareholding of Shang Xia, which was co-established right by the French business partner. Exor makes therefore its debut in the fashion industry by carrying out an investment in Chinese luxury. Hermès will keep acting as one of the brand’s shareholders, together with Jiang Qiong Er, who founded the company in 2010.
In Chinese luxury
Exor is going to invest around 80 million euros in Shang Xia by the end of the year through a capital increase. Thanks to such deal, the Italian fund will become the company’s majority shareholder. Axel Dumas, executive president of Hermès, claimed to be greatly proud of the progress made by the brand.
John Elkann, president and managing director of Exor, made a public statement: “Shang Xia is a unique opportunity to build up the first luxury lifestyle global brand embedded in authentic Chinese heritage”. Exor is one of the largest diversified holding companies in Europe and is also the most important shareholder of several businesses, including, among others, Ferrari, Fiat Chrysler Automobiles and some more.
Shang Xia history
Shang Xia presents a product supply which resembles Hermès production: accessories, leather goods, prêt-à-porter, items for household and other articles manufactured thanks to Chinese traditional craftsmanship and artistic quality. “This agreement is as interesting as unexpected – commented Luca Solca (Bernstein) while speaking to WWD –.
Shang Xia turned out to be an experiment in the contemporary world of Chinese luxury: to the best of my knowledge, they did not achieve the expected result though”. One of the obstacles, among others, they had to overcome was finding quality manufacture.
Patrick Thomas, president of Shang Xia, admitted it plainly. It took him a long time to scout out and recruit skilful and capable artisans who could manufacture products by relying on Chinese tradition’s expertise.