Shanghai Tang, the renowned Chinese fashion label celebrated for its opulent oriental designs, has undergone a change in ownership as Lunar Capital group recently acquired the brand. This move comes after Italian entrepreneur Alessandro Bastagli, under his family holding company Finalba, took over Shanghai Tang from the Richemont luxury group only to pass the baton to Lunar Capital after a brief stint of less than two years.
Bastagli, who also has interests in the fashion industry with ventures like Lineapiù and A.Moda, had grand aspirations for Shanghai Tang. His vision aimed at propelling the brand from its Asian roots to a globally recognized entity, crafted in Italy. To realize this transformation, he laid the groundwork by establishing a robust supply chain in Italy and unveiling a chic showroom in the prestigious via Montenapoleone in Milan. The appointment of Massimiliano Giornetti, an esteemed designer from Salvatore Ferragamo, as the creative director was meant to inject fresh energy into the brand. However, despite these strategic moves, Shanghai Tang struggled to allure the younger demographic Bastagli had targeted.
Originating in Hong Kong in 1994 by David Tang, a scion of a prominent Shanghai family, Shanghai Tang underwent several ownership changes before landing in Bastagli’s hands. Post-acquisition, the focus was set on rebranding Shanghai Tang into a western-style luxury label with a global appeal. Unfortunately, the brand’s intricate oriental aesthetic did not strike a chord with millennials, who gravitate towards casual luxury wear and contemporary designer labels.
With an annual revenue of €30 million, Shanghai Tang predominantly caters to the Asian market through its flagship stores in leading cities like China, Macao, Hong Kong, and Singapore. As Lunar Capital takes charge, the future trajectory of Shanghai Tang hangs in the balance amid shifting consumer preferences and a fiercely competitive fashion landscape.
For more information on Shanghai Tang and its latest developments, visit their official website here. To delve deeper into the fashion industry’s evolving dynamics, explore insightful articles on fashion trends and market insights on Business of Fashion.
