2011 Bain China Luxury Market Study

5 Chinese luxury brands emerging, although still at experimental stage; some with support from Western luxury companies Brand origin Brand concept Market strategy SHANG XIA ("UP DOWN") • Brand co-created by Hermes and Chinese designer - · Hermes created Shangxia brand in 2008 with Chinese artist Jiang Qiong'er as brand CEO & Creative Director • Chinese heritage deeply rooted, with Chinese craftsmanship - · Pushed Chinese influence from product design further to utilize Chinese artisans and rare local materials like zitan wood - Product launch once a year with many items taking months to make - Offers handcrafts, clothing & accessories • Target Chinese customers and then expand outside China - 1st store launched in Shanghai in Sep 2010 and plan to launch stores in Beijing and Paris by 2013 - 60-70% customer base are Chinese opinion-leaders with wide age range and deep cultural background Qeelin • Jewelry brand created by Hong Kong designer & French entrepreneur - Founded and opened its first store in Paris in 2004, entered Mainland China in 2008 • Integrate traditional Chinese inspiration and French craftsmanship - Each piece of jewelry has a remarkable Chinese culture inspired symbol • Aim to obtain international recognition first 9 boutiques around the world, with steady expansion plan - Plan to open store in Shenyang, Dalian in the future • Plan to expand into luxury watch category Qeelin Source: Literature search Qeelin Qiri Cir Coeur de Lotus THD Wulu This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent SHA 2011 Bain China Luxury Market Study_Media release_vf 20

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