SWITZERLAND. Swiss luxury goods company Richemont has sold Chinese fashion brand Shanghai Tang to Italian businessman Alessandro Bastagli and private equity fund Cassia Investments Ltd for an undisclosed fee.
The sale follows Richemont Chairman Johann Rupert’s recent indication that the company would be restructuring its portfolio in the coming months to optimise performance.
According to luxury consumer trends publication Jing Daily, the sale suggests the brand was not resonating with Chinese consumers, particularly women who tend to favour luxury brands from Europe. For the financial year ended 31 March 2017, Richemont’s operating profit fell -14% to €1.76 billion and sales decreased -4% to €10.6 billion.
Shanghai Tang was established in 1994 in Hong Kong by Sir David Tang. Richemont first acquired a stake in the brand in 1998 before taking full ownership a decade later.
Shanghai Tang is present in travel retail at airports including Hong Kong International, Beijing Capital International, Shanghai Pudong and Frankfurt.
Richemont, which recently acquired a 5% stake in Dufry, owns several of the world’s leading luxury goods companies, with particular strengths in jewellery, luxury watches and premium accessories.
