Founded by Hermès in 2008, SHANG XIA is dedicated to crafting high-end products for luxury restaurants and hotels, enhancing the luxury experience. As one of the high-end brands that best represent Chinese style, what considerations led to SHANG XIA’s decision to enter this market?
In an exclusive interview with Luxe.CO, Sophia Wu, CEO of SHANG XIA, explained, “It’s less about us suddenly deciding to enter this market, and more about us truly stepping into a channel that naturally belongs to SHANG XIA.”
SHANG XIA was originally co-founded by the French Hermès Group and is now under the Italian conglomerate EXOR, the parent company of Ferrari. The brand began by inheriting and innovating Chinese craftsmanship, expanding from home products to gifts, art collections, and other tea-centered categories.
Having served many years in the Fortune 500 consumer goods and premier luxury industries, Sophia Wu shared with Luxe.CO the strategic reasoning behind SHANG XIA’s latest moves and her thoughts on managing the brand since becoming CEO.
*Sophia Wu was promoted from COO to CEO of SHANG XIA in July 2022. She previously held a position as a financial manager at Procter & Gamble and has held senior management positions at various luxury brands, including Dior, Chloe, Dolce & Gabbana, and Qeelin.
SHANG XIA collaborates with Shenzhen Mandarin Oriental Hotel to create themed suites.
Why Does the Professional Hotel Channel “Naturally Belong” to Shang Xia?
In recent years, the popularity of Chinese-style fashion has continued to rise. In fact, Chinese design and humanistic expression are naturally embedded in the cultural memory and life attitudes of Chinese consumers, symbolizing the humanistic taste of middle and high-end Chinese consumers.
It is increasingly common to see Chinese aesthetics impressing within luxury hotels, where local and poetic cuisine at Black Pearl restaurants becomes a focal point for gourmets. In the process of returning to traditional cultural atmospheres, contemporary high-end Chinese consumers seek spiritual resonance and self-consistency.
In 2023, the sales of luxury hotels increased to 213 billion euros, surpassing pre-pandemic levels—a joint report by Bain & Company and the Italian luxury manufacturers association Fondazione Altagamma, titled “Long Live Luxury: Converge to Expand through Turbulence,” affirmed the growth potential of the luxury hotel industry.
The report also highlighted the deep-seated cultural experience demands of high-end travelers: the demand for unique, personalized, and transformative experiences has surged, with high-net-worth and ultra-high-net-worth individuals expecting more from hotel and travel experiences than traditional luxury standards, with a stronger desire for culturally immersive experiences.
SHANG XIA has tailored themed suites for the Mandarin Oriental Hotel in Shenzhen.
Focusing on luxury restaurants and hotels, SHANG XIA sees both a thriving opportunity in cultural experience consumption and a match between the brand’s style and product strengths, which continuously attracts architects and designers to propose collaborations.
Wu described, “In recent years, luxury restaurants and hotels have seen greater room for development, and Chinese design and style have become increasingly popular among customers. However, there has always been a gap in professional products that combine outstanding quality, design innovation, and Chinese craftsmanship.”
“I believe, with more than a decade of brand styling and product creation at SHANG XIA, along with our mission to innovate and inherit Chinese traditions, now is the time for us to undertake this venture.”
In 2010, SHANG XIA opened its first boutique on Shanghai’s Huaihai Middle Road, offering home and furniture products made using traditional Chinese craftsmanship. Customers could enjoy Chinese tea in porcelain, with bamboo silk button porcelain tea sets as the store’s signature product.
SHANG XIA’s “Bridge” series features bamboo-inspired porcelain tea sets.
Long respected for its classic furniture creations, SHANG XIA’s carbon fiber chair, inspired by the Ming-style official’s hat chair, stands out as one of its most representative furniture products.
Deeply rooted in traditional Chinese handicrafts, SHANG XIA’s bamboo silk buttoning, bamboo inlay, eggshell lacquer, lacquer, thin porcelain, wood furniture, and kesi leather have become core crafts of the brand. Many works made using these techniques have been permanently collected by world-renowned museums and favored by auction houses like Christie’s.
- In 2015, SHANG XIA’s “Bridge” series of tea sets was collected by the Musée Guimet in Paris;
- In 2016, SHANG XIA’s “Garden” rhinoceros lacquer box and “Bamboo Space” bamboo installation were collected by the Musée Guimet in Paris;
- In 2018, SHANG XIA’s “Rhinoceros Skin Lacquer Heaven and Earth Lidded Box” was permanently collected by the British Museum.
SHANG XIA has also collaborated with artists Ding Yi, Huang Yuxing, and national intangible cultural heritage inheritor Gan Erke, launching co-branded home products including screens, cigar boxes, lacquer tea cans, and artistic furniture, which are favored by collectors and art enthusiasts.
SHANG XIA collaborates with artist Huang Yuxing on the “Heaven and Earth” carbon fiber folding screen.
In fact, focusing on luxury restaurants and hotels, SHANG XIA has already deeply engaged in this area. In 2022, SHANG XIA created an oriental suite and sky lobby for the Mandarin Oriental Hotel in Shenzhen, including dining chairs, flower racks, coffee tables, side cabinets, rocking chairs, armchairs, and various other furniture pieces; it has also custom-designed professional furniture for many luxury hotels, including the PuLi Hotel and Spa in Shanghai and the PuXuan Hotel and Spa in Beijing.
How Does SHANG XIA Serve the Lifestyle of High-End Consumers?
During project participation, Wu was pleasantly surprised to find that both owners and designers focused most on craftsmanship. For example, in a recent hotel project, both the owner and the designer independently chose SHANG XIA’s eggshell lacquer technique. “They believe this not only showcases cultural excellence but also brings innovative design while continuing the tradition of craftsmanship.”
SHANG XIA’s eggshell lacquer carbon fiber chair
She added that many well-known Chinese designers and architects have used SHANG XIA’s products and solutions in hotel and office projects. Entering the luxury restaurant and hotel sector was also due to long-term invitations and calls from the target audience.
Currently, SHANG XIA’s target audience includes four categories: top collectors; designers, architects, artists; online and offline consumers; and distributors.
To serve its target audience more comprehensively and with higher quality, SHANG XIA will expand beyond its goal of being a “global brand in the high-end home sector” to include the needs of luxury restaurants and hotels for furniture and tableware.
SHANG XIA’s crafted restaurant furniture and tableware
SHANG XIA has established a professional channel operations department at its Shanghai headquarters; and made its debut at the 2024 HOTELEX Shanghai International Hotel and Catering Industry Expo at the invitation of partners.
According to descriptions, what sets SHANG XIA’s professional channel apart is its approach to tailor each project, working closely with SHANG XIA’s design team and professional agents to provide clients with complete solutions.
Wu stated, “We don’t just replicate the retail channel model. Our vision is that the products outputted in each project are tailor-made, offering true design, texture, and craftsmanship.”
“Whether in professional channels or retail store channels, I believe what is absolutely crucial is that the value and quality of the products must not diminish.”
This customization model is supported by SHANG XIA’s comprehensive supply chain. Sophia Wu said that the brand has established innovative systems management, “Even if we need to supply products for hundreds of rooms, we can still adhere to handcrafting.”
SHANG XIA’s “Chinese Knot” series of Chinese tableware
With her extensive experience in finance and operations, Wu places high importance on cost and supply chain management. “Since my appointment, my work has been about continuously optimizing the craftsmanship process, how to implement systematic management in the production chain, and ensuring the quality, output, and speed of handcrafted production.”
As tea and tea-related home products are core to SHANG XIA’s home product line, entering the luxury restaurant and hotel market, SHANG XIA will first start with high-end porcelain and tableware, eventually expanding to a broader range of home products.
SHANG XIA’s professional channel partners will include high-end restaurant and hotel brands in international, Asian, and Chinese markets.
Regarding how to choose partners, Wu mentioned, “First, they must have the same ultimate pursuit of craftsmanship as SHANG XIA. Second, they should understand SHANG XIA’s values, mission, and concepts of craftsmanship and design, allowing SHANG XIA to integrate well into the overall design.”
What Role Does SHANG XIA Play in the Surge of Chinese Style?
With the rise of Chinese artistic creation and the call for cultural confidence in China, whether in luxury hotels, commercial spaces, or the daily lives of high-end consumers, Chinese style increasingly symbolizes high taste. On the global stage, the call for Chinese style, products, quality, and experience is growing more intense.
SHANG XIA can be described as both a witness and a leader in this era of the rapid rise of Chinese style. In the words of Wu, “A true luxury brand creates dreams and leads trends, and SHANG XIA is very committed to this philosophy.”
SHANG XIA’s global flagship store
Indeed, this brand, blending traditional Chinese craftsmanship with contemporary design, has stood on the international luxury stage since its inception.
SHANG XIA was established by the French Hermès Group in 2008. At the end of 2020, Exor Group, the holding company of the Italian Agnelli family and owner of the Ferrari brand, invested 80 million euros, becoming the largest shareholder of SHANG XIA. Hermès Group continues as an important shareholder.
Starting from home products, SHANG XIA’s brand now encompasses categories like furniture/home and limited edition art collections.
SHANG XIA’s vision, as Wu stated, is “to create a true luxury brand for China.”
“Faced with the global market’s strong call for Chinese style, SHANG XIA believes that through over a decade of accumulation, it can provide a distinct, high-quality experience and product world.”
Luxe.co: How do you differentiate the business segments of SHANG XIA?
Sophia Wu: We never forget that SHANG XIA is primarily a home lifestyle brand. We’ve always been aware that our core and most iconic offerings are centered around home lifestyle products. Among these, furniture, home items, and tea-related products centered around tea are our most core categories. This core category accounts for the largest percentage of our business in any channel.
Additionally, our limited edition collections and artist collaborations are also very important. This segment allows SHANG XIA to maintain a leading position in Chinese cultural art and creation, gaining favor with international museums, auction houses, galleries, and art collectors. It has shone globally, deeply touching people’s hearts, and further shaping our brand positioning and core style.
SHANG XIA also offers a limited range of apparel products, but we are not a fashion brand. We provide a differentiated offering of high-end Chinese apparel, including products made from lacquered silk and double-faced wool, utilizing unique techniques like Chinese embroidery and paper cutting to create distinctive Chinese-style garments.
Our investment focus varies at different stages, but the core is always home lifestyle products.
Luxe.co: How does leading SHANG XIA differ from leading other luxury brands you’ve managed before?
Sophia Wu: What’s fascinating is that my previous roles were mostly with international brands. So, the first difference is that the brand’s style and identity are unique.
Previously, as a branch of an overseas brand in China, product design and promotion followed decisions made by the brand’s overseas headquarters. Much of the work involved maximizing and optimizing local resources to perform well in the Chinese market.
At SHANG XIA, in addition to business management, the most important tasks include managing the brand and product design, which are more core to our operations.
Furthermore, our business model, product categories, and sales channels are also different.
Therefore, at SHANG XIA, it is crucial to maintain an international perspective and a commitment to our luxury positioning while being very open to the fact that our products, style, management, and sales channels are quite distinct.
Luxe.co: Since becoming CEO of SHANG XIA, you have led the brand to new heights in sales and profits. What are some key actions you’ve implemented?
Sophia Wu: I believe that as a manager, the most important pillars of a brand’s success are its products and marketing. Ultimately, what steers the company’s ship and leads to business results are the scientific management of sales, cost control, margin management, and team and people management.
Luxe.co: What are the goals for SHANG XIA in professional channels?
Sophia Wu: From SHANG XIA’s perspective, the development space in professional channels is very large. Conservatively, I believe that in about three years, the overall hotel channel development could account for half of our business growth. Looking at a ten-year horizon, I think it will bring tremendous growth.
Luxe.co: What are the plans for SHANG XIA at the brand level?
Sophia Wu: Building a world-class luxury brand takes 50 to 100 years, and SHANG XIA is still a very young brand. However, we are fortunate to have the support of Hermès and the Exor Group to help shorten the initial phase of brand nurturing.
Also, given the relatively small scale of our brand, SHANG XIA still has significant market potential in China.
SHANG XIA will continue to adhere to Chinese heritage and innovation in product and design style. In the future, we will focus more on systematic management, communication, content output, professional brand image management, and interaction with consumers to help the market better understand us. We will consistently maintain high quality in our products and style, step by step, to build a luxury brand in China.
| Image Credit: Provided by SHANG XIA
丨Reporter：Jin Daixi
| Editor: Zhu Ruoyu
