C-beauty Giant Florasis Teams With Shang Xia on Anniversary Set
Shang Xia, the Chinese fashion label that Exor acquired from Hermès in 2020, has teamed with C-beauty giant Florasis, known locally as Hua Xizi, on a limited-edition gift box for the Hangzhou-based beauty brand’s sixth anniversary.
Inspired by the traditional Chinese tea ceremony, the collector’s set, in the shape of Shang Xia’s classic circular gift box, comes with its bestselling setting powder, a pressed powder, a setting spray, a cushion foundation and a pair of white ceramic tea cups.
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Florasis, which is known for well designed and Chinese culture-inspired products and packaging, not only is one of the most in-demand local beauty brands in China but it also enjoys a relatively high level of global recognition thanks to viral unboxing videos by major beauty influencers such as Jeffree Star, who called Florasis “the world’s most beautiful makeup.”
The brand itself is also an expert in generating viral short-form videos for platforms like TikTok and Xiaohongshu. Florasis has 1.1 million followers on TikTok and more than 453,000 followers on Instagram.
The international market is a top priority for the brand. In 2023, Florasis is looking to invest more than 20 million renminbi, or $2.9 million, in the Japanese and South East Asian markets and introduce localized product offerings to suit offshore market needs.
Last December, Florasis opened its first brick-and-mortar flagship by the scenic West Lake in Hangzhou, an art gallery-like space to showcase its products and traditional Chinese craftsmanship. The same store concept was realized at the brand’s pop-up at Tokyo’s Cosme Flagship store this February.
In November, the brand will release a series of cosmetics products exclusively for overseas markets as well.
Shang Xia, meanwhile, is facing a much more challenging outlook.
According to Exor’s annual report, the brand’s valuation shrank by 20 percent from 84 million euros in 2021 to 67 million euros in 2022, “as a result of revised expectations in revenue growth to reflect a more cautious and uncertain outlook on China’s macroeconomic environment.”
In 2022, Shang Xia reported a reduction in revenues of 14 million euros, and a negative EBITDA of 24 million euros. Losses in the period widened to 37 million euros from 10 million euros in 2021.
In the period, Exor said the main revenue driver for Shang Xia was the home category, while fashion is expected to increase its contribution over time through the launch of new collections designed by Yang Li, who was appointed fashion creative director in 2021.
The brand also welcomed Sophia Wu as its new chief executive officer last year to further “explore the exciting opportunities to nurture our brand as it grows.”
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