The Agnelli family, famous for their ownership of Fiat and their position as the largest investor in Ferrari, is preparing to acquire a majority stake in the Chinese luxury brand, Shang Xia Paris. Shang Xia, a collaboration between Hermès and Chinese designer Jiang Qiong Er, was established ten years ago and focuses on the fusion of contemporary design and traditional Chinese craftsmanship. While the French luxury giant will retain a significant share in the company, the Agnelli’s Exor holding company will become the largest owner. The deal is expected to be completed by the end of the year and will involve an €80 million investment through a reserved capital increase.

Shang Xia offers a wide range of high-end products, including clothing, jewelry, accessories, furniture, and everyday objects. The brand currently operates six stores in prominent Chinese shopping destinations and one store in Paris on the rue de Sèvres. Its success lies in the combination of modern design aesthetics with traditional Chinese artisanal techniques.

This acquisition marks the Agnelli family’s further foray into the luxury sector. In recent years, Ferrari has broadened its business scope and achieved success in the fashion and perfume segments. The investment in Shang Xia aligns with the Agnelli family’s strategic focus on diversification and growth within the luxury market.

The partnership between Shang Xia and the Agnelli family highlights the significant interest and potential in the Chinese luxury market. As the world’s second-largest economy, China offers immense opportunities for luxury brands. The blend of Western luxury heritage with Chinese craftsmanship has resonated well with consumers in the region, and the Agnelli family’s investment showcases their confidence in the brand’s potential for further growth.

Hermès, as a major shareholder of Shang Xia, stands to gain from this transaction. The company is expected to make a non-recurring profit of approximately €80 million on its initial investment in Shang Xia.

Overall, the investment by the Agnelli family in Shang Xia underscores the increasing importance of the Chinese luxury market and the potential for collaboration between Western luxury brands and Chinese designers. By combining their expertise, these brands can create unique and appealing products that cater to the discerning tastes of Chinese consumers. With the support of the Agnelli family, Shang Xia is anticipated to accelerate its growth and establish a stronger presence in the global luxury market.

Useful links:
– For more information on the Agnelli family’s involvement in the luxury sector, visit CNBC.
– To learn more about the Chinese luxury market and its opportunities, check out this article by McKinsey & Company.