Marking the country's importance as luxury buyer's market, Hermes has introduced a new brand Shang Xia, and opened its first boutique in Shanghai, China. The store, a concept in minimalistic chic, has a lineup of clothing, home furnishings, shoes and tableware. The first collection has been inspired by tea, an important symbolism in China, and is made from traditional Asian materials such as bamboo, cashmere and porcelain. The brand's creative director Jiang Qionger, a Shanghai-based designer will manage a team of about 20 artisans who will bring to life the design team's vision.

The company is now looking seriously at growing strongly in the markets including China, Hong Kong, Macau and Taiwan. This is the first time that Hermes has come into a country with a brand made just for the market. It has built a unique and separate entity for the China market and is building the brand from scratch. It is a blend of traditional Chinese craftsmanship and contemporary design. Post the success of the brand in country, Hermes will take Shang Xia to Paris.  According to consulting firm PriceWaterhouseCoopers China will become the world's top buyer of luxury goods by 2015.