LONDON – China’s middle class has gotten into the Laopu game in a big way this year, while those with much higher disposable incomes are opting for an education in Chinese arts and crafts to collect every piece of Laopu gold.
The Beijing-based retailer was founded in 2009. founded by Xu Gaoming, the star of China’s jewelry market since its initial public offering in Hong Kong in 2024. in June, with a mission to revive the heritage craftsmanship of gold accessories and jewelry offerings.
More from WWD
The brand’s range features cultural designs created using a combination of traditional Chinese techniques, including forging, carving, hollowing, filigree, inlay and enamel heat treatment. Production is usually more expensive and takes longer than conventional options on the market.
Employees show customers gold necklaces at a Laopu Gold store in Shanghai
The best-selling style, such as the small diamond-encrusted cross Vajra pendant with about 7.2 grams of gold, starts at 14,535 renminbi, or $2,041. A larger model in the same style, made of approximately 20.6 grams of gold, costs 44,433 renminbi.
The brand’s premium diamond-encrusted circle pendant, made of about 28 grams of gold, costs 51,000 renminbi, or $7,160, while a bracelet with exquisite cloud patterns, made of about 80 grams of gold, sells for 118,500 renminbi, or $16,644.
The rise of Laopu Gold comes as no surprise to those who have closely followed developments in China over the past decade, as jewelry reminiscent of the country’s rich history has played a major role in the emergence of China’s now-dominant style of old money.
This trend includes using traditional Chinese styles such as Qipao, Hanfu and Tang costumes as a basis for modern designs, or using high-quality embroidered fabrics favored by wealthy Chinese families of the past. On the accessories front, gold, silver, pearl, jade or similarly colored gemstone jewelry is preferred.
Also, since many of the designs are based on traditional and religious iconography, the auspicious references of these pieces make them especially popular for those on a spiritual journey in a challenging economic climate.
Chenchen Wang shows off his Laopu Gold collection
According to Chenchen Wang, one of the jeweler’s most famous fans on Xiaohongshu, a popular Chinese social e-commerce platform, shopping for Laopu Gold is highly addictive and since 2023. started shopping there at the end of the year, she spent more than 1 million renminbi.
“My friend wore a sweater with a classic Buddha pendant from Laopu Gold. I was instantly captivated by the lifelike expression of the Buddha. At that time, the impression of gold jewelry was still stuck with my mother and grandmother’s gold rings. My inner monologue was: ‘Has gold got this stylish now?'” That moment triggered something in me, and I plunged headlong into the world of Laopu, “said Wang, who is the main Chanel, Client for Hermès, Louis Vuitton and Miu Miu in China.
Jai Laopu Gold stands out for its exceptional craftsmanship. “Each piece is a work of art – whether it’s pendants or jewelry – that makes the eye shine like an Hermès bag. There’s Hermès, and then there’s everything else. Now, for me at least, Laopu Gold is the Hermès of gold,” she added.
The investment nature of the purchase is also a key consideration for Wang.
“Every time my daughter sees me buying Laopu Gold pieces, she is amazed at how beautiful they are. Passing on these exquisite gold pieces makes her feel like a cultural legacy. Also, compared to jewelry from other luxury brands, gold products retain their value. It’s half consumption, half investment,” she explained.
Chen Baiyang with his collection of Laopu Gold pendants
Chen Baiyang, one of Xiaohongshu’s most followed fashion influencers with more than 1.8 million fans, said she got on the Laopu Gold train after her close friends raved about his traditional craftsmanship, making it trendy.
“Since I bought mine, all the aunties and uncles have been hooked too, and of course the fans. I bought one for my mom during Chinese New Year. She said she already had something from Laopu Gold. I told her she must be wrong, but when she pulled it out, it was really from them. Mom said she bought it on a trip to Singapore because she thought she was so beautiful at 20.99 trip to Singapore. beat her time,” she said.
The influencer also praised Laopu Gold’s position as a luxury gold maker rather than just an accessories brand.
This explains why Laopu Gold’s rise is being watched closely by industry leaders.
It was well documented on social media that Bernard Arnault, chairman and CEO of LVMH Moët Hennessy Louis Vuitton, spent more than 30 minutes at the Laopu Gold store in Shanghai during a recent market visit in September. According to local media reports, Arnault’s gold jewelry brand looked “excellent and interesting.”
More recently, at the eighth China International Import Expo, or CIIE, Bulgari CEO and LVMH Watches chief Jean-Christophe Babin said that both Bulgari and Laopu are deeply rooted in imperial tradition and lore that goes back more than 1,000 years.
“Laopu successfully uses symbols, themes and values that have shaped Chinese culture for thousands of years. It is a brand with pure Chinese roots. Bulgari does the same in Italy; in this way, we are united by the same values,” Babin said in front of a room of luxury executives and government officials at the fair.
“The fact that China’s pride in its arts is coming back is the best we can hope for, because we are closer than ever to Chinese values and together we will expand the Chinese market,” he continued.
Jean-Christophe Babin at the 8th China International Import Expo or CIIE in Shanghai
Despite China’s troubled recovery story, shoppers queued overnight for the recently opened store at Plaza 66, Shanghai’s most popular luxury mall. In fact, wherever Laopu Gold goes, a queue follows.
In a recent report, HSBC said Laopu Gold has what it takes to be China’s first domestic high-end brand to rival the likes of Tiffany and Richemont, “combining quality design rooted in Chinese cultural heritage with the value-preserving properties of gold”.
There are currently 48 stores worldwide – 42 in mainland China, three in Hong Kong, two in Macau and one in Singapore.
HSBC estimates that Laopu’s high-end jewelry retail sales in mainland China will increase by 2024. accounted for 16 percent of the value, up from 10 percent in 2023. The largest brand in this segment is Tiffany, whose market share is down to 31 percent in 2024. from 39 percent in 2023 the number of customers matches that of Western luxury brands.
Bank Laopu attributed the success to soaring gold prices – hitting a record high of $4,350 an ounce in October – and IPO capital, which started what HSBC called a “golden flywheel”.
“Unlike traditional jewellers, Laopu sells its heritage gold jewelry at fixed prices rather than by weight. As gold prices rose, the retail price premium by gold weight over spot gold fell and demand increased. More inventory was purchased using IPO proceeds, which led to increased sales and faster inventory turnover as demand grew,” the report explained.
In addition, HSBC believes that craftsmanship, cultural storytelling, VIP clients and services, a disciplined expansion model and overseas sales can take over as growth drivers and separate Laopu from the cyclicality of gold prices over medium to long-term pricing.
Considering that Laopu Gold’s sales have increased eightfold in the past two years, the bank predicts that by 2025 net profit and revenue will increase by 218 and 199 percent, respectively.
“As a young high-end jewelry brand in China, we believe that Laopu can gain more market share from leading Western brands as young Chinese consumers increasingly prefer designer gold jewelry to Western designs or gem sets,” the report added.
Customers line up outside Laopu’s gold shop in Shanghai
However, Western peers are not afraid of competition.
In a recent earnings call with analysts, Richemont CEO Nicolas Bos said it’s very healthy to see newcomers like Laopu Gold from a different culture entering the market.
“Laopu Gold is a fantastic example of a new Chinese brand that is very rooted in Chinese culture, while also integrating and understanding some international luxury codes, and creating a very, very unique and differentiated proposition… In the end, this is a boon because it makes the market desirable and the category attractive even to younger prospective customers.”
Another research paper by Bernstein described the Laopu phenomenon as an example of how Chinese luxury consumers continue to “spend differently.”
“Aspirational shoppers are becoming more discerning … focusing their spending on ‘investment-grade’ brands such as Louis Vuitton, Hermès and Chanel, or the hottest and most innovative, including Miu Miu, Laopu Gold and more,” it said.
“Unlike gold jewelry champions such as Chow Tai Fook or Luk Fook, Laopu has focused on high-end products: charging significantly higher prices while providing superior service in its single-brand stores. Laopu operates with a significantly lower gross margin than Western jewelry brands, so it feels that the price is better,” added Bernstein.
The best of WWD
Sign up for the WWD newsletter. Follow us on Facebook, Twitter and Instagram for the latest news.
