Wensli Silk: Succession and International Luxury Branding
(9 pages of text)
In 2011, China-based Wensli Group’s newly appointed chairwoman was preparing to transform the company’s silk business into a global luxury brand. It was a lofty goal for a company that started out as a township silk factory before growing into the largest silk-producing company in China. Tapping into the luxury market, however, presented a challenge because Chinese companies were better known for producing cost-conscious products. That meant Wensli, a family-owned business, was facing a huge hurdle in building a brand in a marketplace where it simply had no experience. What steps are needed for the company to gain a foothold in the high-end luxury segment currently dominated by European players? Should the company seek talent expertise from beyond its borders to build an international luxury brand?
This case is suitable for use in MBA and other executive-level courses about entrepreneurship, family business, China, and globalization. After completion of the case, students will be able to:
- Understand the inter-generational challenges with respect to business philosophies that stem from mother-to-daughter succession.
- Identify the difficulties facing a Chinese family firm that wants to internationalize its business.
- Appreciate how value and credibility can be added by hiring outside expertise.
- Identify key strategies necessary to successfully build a global luxury brand.
China, Large, 2015
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download