• Asia Marketing Journal
• /
• v.15 no.1
• /
• pp.1-22
• /
• 2013

This case focuses on Shanghai Tang, the first truly Chinese luxury brand that appeals to both Westerners and, more recently, to Chinese consumers worldwide. A visionary and wealthy businessman Sir David Tang created this company from scratch in 1994 in Hong Kong. Its story, spanned over almost two decades, has been fascinating. It went from what best a Chinese brand could be in the eyes of Westerners who love the Chinese culture, to a nearly-bankrupted company in 1998, before being acquired by Richemont, the second largest luxury group in the world. Since then, its turnaround has been spectacular with a growing appeal among Chinese luxury consumers who represent the core segment of the luxury industry today. The main objective of this case study is to formally examine how Shanghai Tang overcame its downfall and re-emerged as one the very few well- known Chinese luxury brands. More specifically, this case highlights the ways with which Shanghai Tang made a transitional change from a brand for Westerners who love the Chinese culture, to a brand for both, Westerners who love the Chinese culture and Chinese who love luxury. A close examination reveals that Shanghai Tang has followed the brand identity concept that consists of two major components: functional and emotional. The functional component for developing a luxury brand concerns all product characteristics that will make a product 'luxurious' in the eyes of the consumer, such as premium quality of cachemire from Mongolia, Chinese silk, lacquer, finest leather, porcelain, and jade in the case of Shanghai Tang. The emotional component consists of non-functional symbolic meanings of a brand. The symbolic meaning marks the major difference between a premium and a luxury brand. In the case of Shanghai Tang, its symbolic meaning refers to the Chinese culture and the brand aims to represent the best of Chinese traditions and establish itself as "the ambassador of modern Chinese style". It touches the Chinese heritage and emotions. Shanghai Tang has reinvented the modern Chinese chic by drawing back to the stylish decadence of Shanghai in the 1930s, which was then called the "Paris of the East", and this is where the brand finds inspiration to create its own myth. Once the functional and emotional components assured, Shanghai Tang has gone through a four-stage development to become the first global Chinese luxury brand: introduction, deepening, expansion, and revitalization. Introduction: David Tang discovered a market gap and had a vision to launch the first Chinese luxury brand to the world. The key success drivers for the introduction and management of a Chinese luxury brand are a solid brand identity and, above all, a creative mind, an inspired person. This was David Tang then, and this is now Raphael Le Masne de Chermont, the current Executive Chairman. Shanghai Tang combines Chinese and Western elements, which it finds to be the most sustainable platform for drawing consumers. Deepening: A major objective of the next phase is to become recognized as a luxury brand and a fashion or design authority. For this purpose, Shanghai Tang has cooperated with other well-regarded luxury and lifestyle brands such as Puma and Swarovski. It also expanded its product lines from high-end custom-made garments to music CDs and restaurant. Expansion: After the opening of his first store in Hong Kong in 1994, David Tang went on to open his second store in New York City three years later. However this New York retail operation was a financial disaster. Barely nineteen months after the opening, the store was shut down and quietly relocated to a cheaper location of Madison Avenue. Despite this failure, Shanghai Tang products found numerous followers especially among Western tourists and became "souvenir-like" must-haves. However, despite its strong brand DNA, the brand did not generate enough repeated sales and over the years the company cumulated heavy debts and became unprofitable. Revitalizing: After its purchase by Richemont in 1998, Le Masne de Chermont was appointed to lead the company, reposition the brand and undertake some major strategic changes such as revising the "Shanghai Tang" designs to appeal not only to Westerners but also to Chinese consumers, and to open new stores around the world. Since then, Shanghai Tang has become synonymous to a modern Chinese luxury lifestyle brand.

• Asia pacific journal of information systems
• /
• v.22 no.1
• /
• pp.29-52
• /
• 2012

Consumers differ in the way they make a purchase. An audio mania would willingly make a bold, yet serious, decision to buy a top-of-the-line home theater system, while he is not interested in replacing his two-decade-old shabby car. On the contrary, an automobile enthusiast wouldn't mind spending forty thousand dollars to buy a new Jaguar convertible, yet cares little about his junky component system. It is product involvement that helps us explain such differences among individuals in the purchase style. Product involvement refers to the extent to which a product is perceived to be important to a consumer (Zaichkowsky, 2001). Product involvement is an important factor that strongly influences consumer's purchase decision-making process, and thus has been of prime interest to consumer behavior researchers. Furthermore, researchers found that involvement is closely related to perceived risk (Dholakia, 2001). While abundant research exists addressing how product involvement relates to overall perceived risk, little attention has been paid to the relationship between involvement and different types of perceived risk in an electronic commerce setting. Given that perceived risk can be a substantial barrier to the online purchase (Jarvenpaa, 2000), research addressing such an issue will offer useful implications on what specific types of perceived risk an online firm should focus on mitigating if it is to increase sales to a fullest potential. Meanwhile, past research has focused on such consumer responses as information search and dissemination as a consequence of involvement, neglecting other behavioral responses like online merchant selection. For one example, will a consumer seriously considering the purchase of a pricey Guzzi bag perceive a great degree of risk associated with online buying and therefore choose to buy it from a digital storefront rather than from an online marketplace to mitigate risk? Will a consumer require greater trust on the part of the online merchant when the perceived risk of online buying is rather high? We intend to find answers to these research questions through an empirical study. This paper explores the impact of enduring product involvement and perceived risks on required trust level, and further on online merchant choice. For the purpose of the research, five types or components of perceived risk are taken into consideration, including financial, performance, delivery, psychological, and social risks. A research model has been built around the constructs under consideration, and 12 hypotheses have been developed based on the research model to examine the relationships between enduring involvement and five components of perceived risk, between five components of perceived risk and required trust level, between enduring involvement and required trust level, and finally between required trust level and preference toward an e-tailer. To attain our research objectives, we conducted an empirical analysis consisting of two phases of data collection: a pilot test and main survey. The pilot test was conducted using 25 college students to ensure that the questionnaire items are clear and straightforward. Then the main survey was conducted using 295 college students at a major university for nine days between December 13, 2010 and December 21, 2010. The measures employed to test the model included eight constructs: (1) enduring involvement, (2) financial risk, (3) performance risk, (4) delivery risk, (5) psychological risk, (6) social risk, (7) required trust level, (8) preference toward an e-tailer. The statistical package, SPSS 17.0, was used to test the internal consistency among the items within the individual measures. Based on the Cronbach's ${\alpha}$ coefficients of the individual measure, the reliability of all the variables is supported. Meanwhile, the Amos 18.0 package was employed to perform a confirmatory factor analysis designed to assess the unidimensionality of the measures. The goodness of fit for the measurement model was satisfied. Unidimensionality was tested using convergent, discriminant, and nomological validity. The statistical evidences proved that the three types of validity were all satisfied. Now the structured equation modeling technique was used to analyze the individual paths along the relationships among the research constructs. The results indicated that enduring involvement has significant positive relationships with all the five components of perceived risk, while only performance risk is significantly related to trust level required by consumers for purchase. It can be inferred from the findings that product performance problems are mostly likely to occur when a merchant behaves in an opportunistic manner. Positive relationships were also found between involvement and required trust level and between required trust level and online merchant choice. Enduring involvement is concerned with the pleasure a consumer derives from a product class and/or with the desire for knowledge for the product class, and thus is likely to motivate the consumer to look for ways of mitigating perceived risk by requiring a higher level of trust on the part of the online merchant. Likewise, a consumer requiring a high level of trust on the merchant will choose a digital storefront rather than an e-marketplace, since a digital storefront is believed to be trustworthier than an e-marketplace, as it fulfills orders by itself rather than acting as an intermediary. The findings of the present research provide both academic and practical implications. The first academic implication is that enduring product involvement is a strong motivator of consumer responses, especially the selection of a merchant, in the context of electronic shopping. Secondly, academicians are advised to pay attention to the finding that an individual component or type of perceived risk can be used as an important research construct, since it would allow one to pinpoint the specific types of risk that are influenced by antecedents or that influence consequents. Meanwhile, our research provides implications useful for online merchants (both online storefronts and e-marketplaces). Merchants may develop strategies to attract consumers by managing perceived performance risk involved in purchase decisions, since it was found to have significant positive relationship with the level of trust required by a consumer on the part of the merchant. One way to manage performance risk would be to thoroughly examine the product before shipping to ensure that it has no deficiencies or flaws. Secondly, digital storefronts are advised to focus on symbolic goods (e.g., cars, cell phones, fashion outfits, and handbags) in which consumers are relatively more involved than others, whereas e- marketplaces should put their emphasis on non-symbolic goods (e.g., drinks, books, MP3 players, and bike accessories).

• Korean Journal of Heritage: History & Science
• /
• v.42 no.3
• /
• pp.154-175
• /
• 2009

At the present state, studies on Gyeongbok palace are being done with history of architecture, records, and art. However, these studies have limits that they can only depend on existing buildings and record, which make it hard to research whole aspect of palaces. The foundation remains(Jeoksim) of Gyeongbok palace in the ground gives important clues that can fill the gaps of these studies. Thus I analysed jeoksim of Gyeongbok palace, assorted them by type, scale, material, and construction method. I examined jeoksim used by various types of building, and looked at changes by periods. Jeoksims are classified in 21 types. The foundation(jeoksim) varies according to types of buildings, building types and material of jeoksim also varies along the periods, and the fact proves certain peroid of time has its own jeoksim style in fashion. Jeoksims of Gyeongbok palace are divided into round-shape(I), rounded square-shape(II), rectangular-shape(III), square-shape(IV), and whole foundation of building(V) by the plane shape. They can be divided again into 21 types by construction techniques and materials used. During early Joseon(I), only three types of jeoksim; round-shape riprap jeoksim(1-1), II-1(rounded square-shape), II-2a(rounded square-shape riprap+roofingingtile brick), had been built, but as 19th century begun, all 21 types of jeoksim had built. In 19th century during Emperor Gojong, different types of jeoksim by periods were built, and especially different materials were used. During Gojong year 2(1865)~year 5(1868), in which Gyeongbok palace were rebuilt, 7 out of 10 types of jeoksim used piece of roofinging tile and brick mixture, in contrast, during Gojong year 10(1873)~13(1876), or 25(1888), 3 out of 5 types of jeoksim used sandy soil with mixture of plaster. Meanwhile palace buildings have different names by the class of owner and use such as Jeon, Dang, Hap, Gak, Jae, Heon, Nu, and Jeong, which were classified by types and buildings were built according to each level. With an analysis of jeoksim by its building types, I ascertained that jeoksim were built differently in accordance to building types(Jeon, Dang, Hap, Gak, Jae, Heon, Nu, and Jeong). By the limitation of present document, only some types of buildings such as Jeon, Dang, Gak, Bang were confirmed, as for Jeon and Gak, square-shape(IV) built with rectangular parallelepiped stone, and for Dang and Bang, rounded square-shape(IV) built with roofinginginging tile and riprap were commonly used. From the fact that other jeoksim with uncertain building names, were mostly built in early Joseon, we learn that round-shape riprap jeoksim(1-1) were commonly built. Therefore, the class of building was higher if the owner was in higher class, jeoksim is also considered to be built with the strongest and best material. And for Dang and Bang, rounded square-shape jeoksim were used, Dang has lots of II-2a (riprap + piece of roofing tile and brick rounded square-shape) type which mainly used riprap and piece of roofing tile and brick, but Bang has lots of II-2b (piece of roofing tile and brick+(riprap+piece of roofing tile and brick rounded square-shape), which paved piece of roofing tile and brick by 15~20cm above. These jeoksim by building types were confirmed to have changed its construction type by period. As for Jeon and Gak, they were built with round-shape riprap jeoksim(1-1) in early Joseon(14~15c), but in late Joseon(19c), various types of Jeoksim were built, especially square-shape(IV) were commonly built. For Dang, only changes in later Joseon were confirmed, jeoksim built in Gojong year 4(1867) mostly used mixture of riprap and piece of roofing tile and brick. In Gojong year 13(1876) or year 25(1888), unique type of plaster with sand and coal and soil layered jeoksim were built that are not found in any other building types. Through this study, I learned that various construction types of jeoksim and material were developed in later Joseon compare to early Joseon. This states that construction technique of building foundation of palace has upgraded. Above all, I learned jeoksim types are all different for various kinds of buildings. This tells us that when they constructed foundation of building, they used pre-calculated construction technique.