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Shanshan international brand into the "middle of the filial piety era"
There are three common ways for foreign luxury brands to enter the Japanese market: establishing branch offices, working with local agents, or collaborating with general trading companies. In contrast, China offers only two main pathways: either partnering with a domestic company like Shanshan or setting up a direct branch. China lacks specialized comprehensive trading companies that focus solely on brand operations. Shanshan aspires to become a company like Japan’s Itochu Corporation — a powerful and well-rounded international player.
Shanshan’s goal is to serve as the most effective channel for international brands entering the Chinese market. On the evening of October 21, in Yuyao River, one of Zhejiang Ningbo’s scenic resorts, an elegant event took place. The occasion was the return of Smalto, a prestigious French men's fashion brand, to Paris Fashion Week. Alongside Philippe De Vilmorin, the global president of Smalto, was Fubonichi, the president of Ningbo Shanshan Co., Ltd., who had recently joined the company. This marked his first official appearance as Shanshan’s “foreign†leader, raising questions about what he would bring to the company.
On October 30, the Smalto flagship store in Ningbo’s Tianyi Square CBD International Shopping Center officially opened. Since 2008, Shanshan has been introducing Smalto to the Chinese market, opening six stores so far. Founded in 1962 by Francesco Smalto, the brand holds over 200 garment patents and is known for its advanced handmade tailoring. It has dressed notable figures, including the former U.S. President Kennedy. According to Philippe De Vilmorin, Smalto is currently focusing on its premium line, with plans to expand into second-tier products in the future.
Smalto’s partnership with Shanshan began as early as 2007, with the first store opening in Tianjin in September 2008. Over the next three years, the brand aims to open 15–20 stores across China. As the 10th international brand introduced by Shanshan, this partnership marks the company’s eighth year of international expansion. In September 2001, Shanshan launched its multi-brand and international strategy, starting with the Italian brand Marco Azzali. This joint venture with Farah Group and ITOCHU Corporation laid the foundation for Shanshan’s long-term approach to operating international brands.
Since then, Shanshan has partnered with several other international brands, such as Le Coq Sportif, Renoma, and Lubiam, often holding controlling stakes. This strategy allows Shanshan to maintain control over the brand’s operations, secure long-term licensing periods, and develop localized products. As Shanshan Holdings Chairman Zheng Yonggang explained, this model is not just a collaboration but a full operational partnership, not just an agency agreement.
Currently, Shanshan operates 10 international brands, eight of which are already profitable. Its model draws inspiration from Japan’s ITOCHU Corporation, a leading multinational trading company with extensive experience in managing international brands through joint ventures. Shanshan has been working closely with ITOCHU since 1984, and in 2023, they signed a strategic cooperation agreement, with ITOCHU investing 10 billion yen (about 758 million yuan) for a 28% stake in Shanshan.
Fubonichi, who previously worked at ITOCHU for decades, now serves as Shanshan’s Managing Director. His appointment reflects the deepening integration between the two companies, with ITOCHU also contributing top executives to help manage Shanshan’s operations. After more than seven months in the role, Fubonichi described the process of merging Japanese and Chinese business styles as a delicate balance, summarized in one word: “a word out.â€
Despite the challenges, the Chinese market has shown strong support for Shanshan’s strategy. Fubonichi noted that with China’s economic growth, consumer purchasing power continues to rise, and even second-tier cities are becoming key markets for luxury brands. While competition in first-tier cities is fierce, he sees greater potential in the lower-tier markets. He emphasized that successful entry into the Chinese market requires thorough research and adaptation to local preferences, rather than simply rushing in.