Exor has decided to bring the luxury production of the brand Shang Xia to Italy. The investment fund owned by the Agnelli family wants to develop the brand’s business, but “it needs investments and patients”. That is, even considering that while young Chinese consumers prefer local brands, they could still push the brand’s growth. Well-defined growth strategies for Exor, which doesn’t appear to be planning additional acquisitions in the fashion segment, after Shang Xia, Louboutin and the entrance of Ferrari in the segment.
The luxury production of Shang Xia is moved to Italy
The Shang Xia brand is currently enjoying “strong double-digit growth”, explains Exor, which doesn’t release the data. “We need time to grow these brands”, comments Suzanne Heywood, CEO of the fund to Business of Fashion. “We are long-term shareholders and we are patient, but active in governance matters”. Exor gave the brand to a new CEO (Sophia Wu), a new creative director (Yang Li) who is accompanied by da Leon Sun for the Home line. Managerial choices, those by the Agnelli family, that have been sided by another significant choice. It transferred most of the prêt-à-porter, shoes and handbags production to Italy.
Investments to grow
This year the brand opened two new stores in Shanghai and Taiwan, bringing the total number to 20, while the next openings will be in Shenzhen and Hainan. The brand’s total turnover is limited and will need investments to grow. Exor, led by John Elkann (in photo from Imagoeconomica) didn’t reveal the future objective, but Heywood points out that the fund strongly believes in the potential of the Chinese brand.
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