Hermès is set to launch a new brand in China in September, in an unusual move that the French company hopes will win more customers in the world's second-largest luxury goods market.
Florian Craen, Hermès managing director in north Asia, said the Shang Xia brand – which means “up and down” in English – would remain “completely separate” from the main Hermès line to avoid customer confusion.
Some analysts believe that the new Shang Xia shop, which will open in Shanghai selling tableware and furniture, will dilute the Hermès brand, famed for its Kelly and Birkin bags.
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