When a small company begins to step into the
right track and is estimated to have a promising
foreground, the industry giant will either beat it
down or take it over. Once being merged, the
owner of the acquired will totally lose the control
of the company, so the company can no longer be
‘local’. As mentioned, Shanghai Tang which used
to be a traditional Hong Kong cheongsam luxury
brand was merged by Richemont Group, the second
largest luxury giant in the world, and became
Richemont’s third profitable subsidiary brand.
Although Shanghai Tang grows better after the
acquisition, it’s no longer a pure Chinese luxury
brand.