Shanghai Tang sold to Chinese Lunar Capital fund

1 min readDec 11, 20188:37 AM

In this article (5)

Chinese luxury fashion label Shanghai Tang has been acquired by Chinese investment fund Lunar Capital. The new owner specialises in growing mid-sized Chinese firms, already holding a range of clothing brands. Their acquisition signals a new direction for the brand, which has just opened a flagship store on JD’s luxury platform TopLife, the brand’s first domestic online retail space. Shanghai Tang’s creative director Massimiliano Giornetti will be resigning following the handover.

The rapid turnover just one year after its acquisition by Italian clothing firm A. Moda, Alessandro Bastagli, and Hong Kong private equity firm Cassia Investments follows disagreements between the buyers. The brand was purchased last year from Swiss luxury goods firm Richemont Group, one of the brand’s original investors and owners since 2008.

Shanghai Tang is thought to be China’s first contemporary luxury brand, and pulled in estimated sales of US$45.57 million this year.

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What this means

Lunar Capital's acquisition, particularly its existing clothing brand portfolio and focus on mid-sized Chinese firms, positions Shanghai Tang for a more cohesive domestic growth strategy than its recent private equity or Italian ownership. The immediate online push with JD TopLife, unlike the previous owners who didn't launch an online store, indicates a clear commercial path, potentially pressuring other Asian luxury brands relying heavily on traditional retail. The swift departure of the creative director, however, presents a risk to brand continuity and design direction. This move contrasts with the cautious expansion seen in the Hong Kong market with brands like Dairy Queen planning only a few stores by 2026. What remains to be seen is Lunar Capital's first major design collection under the new creative leadership.

Aiko Tanaka

Questions & Answers

What kind of companies does the new owner, Lunar Capital, typically invest in?

Lunar Capital is an investment fund that focuses on developing mid-sized Chinese firms. They already have several other clothing brands in their portfolio, indicating their experience in this sector.

Why has Shanghai Tang been sold again so soon after its previous acquisition?

The rapid sale follows disagreements between the previous buyers, Italian clothing firm A. Moda, Alessandro Bastagli, and Hong Kong private equity firm Cassia Investments, who had acquired the brand only a year ago.

What is the new owner's initial step for the Shanghai Tang brand?

The acquisition by Lunar Capital signals a new direction, with the brand having just launched its first domestic online retail presence through a flagship store on JD’s luxury platform TopLife.

How long had Richemont Group owned Shanghai Tang before its sale last year?

Richemont Group, one of the brand's original investors, had owned Shanghai Tang since 2008. They sold the brand last year, prior to the current acquisition by Lunar Capital.

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