By William Stolerman

China's growing position in the luxury market is clearly being felt by Hermès, who have announced the launch of a new brand called Shang Xia.

Hermès have appointed Qiong-Er Jiang as the creative director of the brand which will be based in Shanghai and should make its first graceful appearance around the spring time. The line will include ready-to-wear pieces, tableware and pieces of furniture inspired by Chinese culture.

Shang Xia translates roughly as 'topsy-turvy' or 'upside down' and it’s the first time in Hermès' history that they have launched a luxury brand from grassroots level.

Hermès hope that Shang Xia will help address what they see as their failure thus far to make real inroads into the Chinese market.

The brand will also be launched simultaneously in Paris, a critical move as Managing Director of Hermès International, Patrick Thomas explained: "presence in Paris will give additional credibility, especially among Chinese tourists."

It has not been revealed how many outlets will be comissioned or when they will be opened. Nonetheless, exciting times are ahead...