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Pioneer or Dreamer

In: Business and Management

Submitted By xintong
Words 2971
Pages 12
Pioneer or Dreamer?
-- Analysis of the “Shanghai Tang: The First Global Chinese Luxury Brand?” case

1. Introduction
According to the case “Shanghai Tang: The First Global Chinese Luxury Brand?”, Shanghai Tang was struggling for more than 18 years to be the first global Chinese luxury brand, but unfortunately, until today, Mr. David Tang, the founder of this brand, still has to face a lot of problems: international brand awareness, costumer approval, operation & marketing strategies, relentless competitions, intercultural communication and multicultural integration, etc. It may be on the right track, maybe not. Is Mr. David Tang a pioneer? Or is he just a dreamer? In this analysis report, I will separate all these arguments into four parts: the company’s activities and current development; comparison of competitors’ strategies and tactics; intercultural issues and costumer behaviour in the luxury industry, especially Chinese market; recommendations and alternative solutions for Shanghai Tang’s future strategies. In this report, I will focus on the two most important factors: “inter Culture” and “luxury”, which will impact on the future strategies of Shanghai Tang, and I will defend my standpoints by analyzing the environment of luxury industry and cultural context in China. 2. Shanghai Tang’s current development and business situation Since 1995, the Swiss luxury company Financiere Richem SA (Richemont) became the main shareholder of Shanghai Tang, Tang’s company had a deep European Luxury background, which could support its development in both financial and strategic aspects. It is a big competitive advantage for Shanghai Tang, compare with other Chinese fashion player. After the failure of New York flagship store in 1999, new leadership and direction was infused in Shanghai Tang in 2001, by the new CEO, Rapheal le Masne de Chermont, who...

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