LONDON — China‘s middle class has been deep in the Labubu game this year, while those with much larger disposable incomes are embracing an education in Chinese arts and crafts in the form of collecting every single piece from Laopu Gold.
A breakout star in the Chinese jewelry market since its Hong Kong initial public offering in June 2024, the Beijing-based retailer was founded in 2009 by Xu Gaoming with a mission to revive the use of heritage craftsmanship across its offering in gold accessories and ornaments.
The brand’s range features cultural designs made using a mix of traditional Chinese techniques, including hammering, carving, hollowing, filigree, embedding, and heat treatment of enamels. Production is usually more expensive and time-consuming than it is for regular options in the market.
Employees show gold necklaces to customers at the Laopu Gold shop in Shanghai.
VCG via Getty Images
A top-selling style, such as the small diamond-encrusted cross Vajra pendant with around 7.2 grams of gold, retails from 14,535 renminbi, or $2,041. A larger model of the same style made with around 20.6 grams of gold is priced at 44,433 renminbi.
On the more premium end, the brand’s diamond-encrusted wheel pendant made with around 28 grams of gold costs 51,000 renminbi, or $7,160, and a bangle with auspicious cloud patterns made with around 80 grams of gold retails for 118,500 renminbi, or $16,644.
The rise of Laopu Gold comes as no surprise to those who have been watching closely for new developments in China in the past decade, as jewelry that nods to the country’s rich history has been playing a big part in the emergence of the now-dominant Chinese Old Money style.
This trend involves using traditional styles from China, such as Qipao, Hanfu, and Tang suits, as the basis for modern takes, or using high-quality embroidered fabrics favored by wealthy Chinese families of the past on modern designs. On the accessories front, gold, silver, pearls, jade, or similar colored gemstone jewelry is favored.
Also, since many of the designs are rooted in traditional and religious iconography, the auspicious indications of these pieces make them extra popular for those who are on a spiritual journey amid a tough economic climate.
Chenchen Wang showing her Laopu Gold collection.
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According to Chenchen Wang, one of the most vocal fans of the jeweler on China’s popular social commerce platform Xiaohongshu, shopping at Laopu Gold is highly addictive, and she has spent over 1 million renminbi since she started shopping there at the end of 2023.
“A friend of mine was wearing a sweater with a classic Buddha pendant from Laopu Gold. I was instantly captivated by the lifelike expression of the Buddha. At the time, my impression of gold jewelry was still stuck with my mom’s and grandma’s gold rings. My inner monologue was like: ‘Has gold gotten this stylish now?’ That moment sparked something in me, and I dove headfirst into the world of Laopu,” said Wang, who is a major client of Chanel, Hermès, Louis Vuitton, and Miu Miu in China.
To her, Laopu Gold stands out for its exceptional craftsmanship. “Every piece is a work of art — whether pendants or ornaments — that makes your eyes light up, just like an Hermès bag. There’s Hermès, and then there’s everything else. Now, at least to me, Laopu Gold stands as 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 buy pieces from Laopu Gold, she marvels at how beautiful they are. Passing down these exquisite gold pieces to her feels like a cultural legacy. Plus, compared to jewelry from other luxury brands, gold products hold their value better. It’s half consumption, half investment,” she explained.
Chen Baiyang with her Laopu Gold pendants collection.
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Chen Baiyang, one of the most-followed fashion influencers on Xiaohongshu with over 1.8 million fans, said she jumped on the Laopu Gold bandwagon after her close friends kept raving about its traditional craftsmanship, making it a trendy thing to do.
“Ever since I bought mine, all my aunts and uncles have gotten hooked, too, and of course, the fans. During the Chinese New Year, I bought one for my mom. She said she already had something from Laopu Gold. I told her she must be mistaken, but when she pulled it out, it really was from them. My mom said she bought it during a trip to Singapore in 2019, because she thought the design was so beautiful. She was just way ahead of her time,” she said.
The influencer also gave a thumbs-up to Laopu Gold’s positioning, focusing on the concept of being a luxury gold objects-maker instead of just an accessories brand.
That explains why industry leaders are closely watching the rise of Laopu Gold.
It’s been well documented on social media that Bernard Arnault, chairman and chief executive officer of LVMH Moët Hennessy Louis Vuitton, spent over 30 minutes inside a Laopu Gold store in Shanghai during his recent market visit in September. According to local media reports, Arnault found the gold jewelry brand “exquisite and interesting.”
More recently, at the eighth China International Import Expo, or CIIE, Jean-Christophe Babin, CEO of Bulgari and head of LVMH Watches, said both Bulgari and Laopu are deeply rooted in imperial traditions and expertise that goes back more than 1,000 years.
“Laopu is successful by using symbols, themes, and values that have been shaping Chinese culture over thousands of years. This is a brand with pure Chinese roots. Bulgari has been doing exactly the same in Italy; in this way, we share the same values,” said Babin in front of a room of luxury executives and government officials at the fair.
“The fact that there is a reemergence of Chinese pride in its arts is the best that we can expect, because more than ever, we are close to Chinese values, and together, we will broaden the Chinese market,” he continued.
Jean-Christophe Babin at CIIE.
Courtesy
Despite China’s rocky recovery story, shoppers queued overnight for its recent store opening at Plaza 66, a top luxury mall in Shanghai. In fact, wherever Laopu Gold goes, the queue follows.
In a recent report, HSBC said Laopu Gold has what it takes to be China’s first homegrown, high-end brand to compete with the likes of Tiffany and Richemont by “combining quality designs rooted in Chinese cultural heritage with gold’s value-preserving qualities.”
It currently has 48 stores worldwide — 42 in mainland China, three in Hong Kong, two in Macao, and one in Singapore.
HSBC estimated Laopu’s retail sales in mainland China in high-end jewelry in 2024 amounted to 16 percent in terms of value, up from 10 percent in 2023. The top brand in this segment is Tiffany, whose market share fell to 31 percent in 2024 from 39 percent in 2023. According to Frost & Sullivan, some 77 percent of Laopu’s clientele overlaps with Western luxury brands.
The bank attributed Laopu’s success to soaring gold prices — hitting a record $4,350 per ounce in October — and IPO capital that kick-started what HSBC called “the gold flywheel.”
“Unlike traditional jewelers, Laopu sells its heritage gold jewelry at fixed prices, not by weight. As gold prices soared, its retail price premium by weight of gold over the spot gold price narrowed, and demand surged. More inventory was bought using IPO proceeds, which translated into higher sales and faster inventory turnover on rising demand,” the report explained.
Additionally, HSBC believes craftsmanship, cultural storytelling, VIP customers and services, a disciplined expansion model, and overseas sales can take over as the growth drivers and detach Laopu from the cyclicality of gold prices through pricing power over the medium to long term.
Given that sales of Laopu Gold grew eightfold over the past two years, the bank forecasts its 2025 net profit and revenue to grow 218 percent and 199 percent, year-over-year, respectively.
“As a young high-end jewelry brand in China, we believe Laopu can gain more market share from leading Western brands, as Chinese young consumers increasingly prefer crafted heritage gold jewelry to Western designs or gem-set jewelry products,” the report added.
Customers line up in front of the Laopu Gold Store in Shanghai.
CFoto/Future Publishing via Getty
But Western peers are not afraid of the competition.
In a recent earnings call with analysts, Nicolas Bos, CEO of Richemont, said it’s very healthy that there are newcomers like Laopu Gold from a different cultural background entering the market.
“Laopu Gold is a fantastic example of a new Chinese brand that’s very much rooted in Chinese culture, and also integrated and understood some of the codes of international luxury, and is developing a very, very unique and differentiated offer…At the end of the day, it is a blessing because it makes the market desirable and the category attractive, even to a younger, upcoming clientele.”
Another research paper from Bernstein characterized the Laopu phenomenon as an example of how Chinese luxury consumers continue to “spend differently.”
“Aspirational buyers are becoming more discerning…concentrating their spending on ‘investment-grade’ brands, such as Louis Vuitton, Hermès and Chanel, or the hottest and most innovative, including Miu Miu, Laopu Gold, etc.,” wrote the report.
“Contrary to gold jewelry champions like Chow Tai Fook or Luk Fook, Laopu has squarely focused on the high-end: charging significantly higher prices while providing superior service in its mono-brand stores. Laopu operates with a significantly lower gross margin than Western jewelry brands, providing a sense of better value for money,” Bernstein added.
