Nearly a decade ago, Shanghai-based sales and marketing professional Vivian Wang purchased a gold medallion featuring an intricate dragon carving from Laopu Gold (6181.HK). The brand faded from her memory until last year, when it resurfaced on her social media feed.
As she scrolled through numerous posts about Laopu Gold, Wang was surprised to find that her dragon medallion had doubled in value, now selling for 220,000 yuan ($30,440.14). Intrigued, she decided to visit Laopu’s Shanghai store in the bustling Yu Garden tourist area, where she joined a long queue to purchase another piece. This time, she selected an ornate jewelry box woven from thin gold threads, adorned with a dragon and phoenix motif on the lid. She hopes to pass it down to her eight-year-old daughter in the future.
“I love jewelry and have bought from brands like Tiffany, Cartier, and Bulgari,” Wang said, referring to luxury houses owned by LVMH (LVMH.PA) and Richemont (CFR.S). “I own diamond and gemstone pieces, but in the long run, gold is the best way to preserve value.”
She believes the appeal of Laopu Gold extends beyond aesthetics. “After the epidemic, people are seeking something more meaningful, a source of spiritual comfort. This traditional dragon and phoenix box symbolizes good fortune and offers that deeper significance,” she added.
Laopu Gold stands out as a rare success story in China’s struggling luxury market, which has been dampened by economic uncertainty, concerns over employment and wages, and an ongoing real estate downturn.
The company has carved out a niche by integrating Chinese cultural heritage into modern designs, positioning itself as a distinct homegrown luxury brand. Its use of gold, widely regarded in China as a stable investment during uncertain times, has further bolstered its appeal.
According to a source familiar with Laopu Gold’s business, the company’s annual sales are projected to reach nearly 10 billion yuan by 2024, up significantly from 3.18 billion yuan in the previous year.
“The average store revenue of Laopu Gold is close to 300 million yuan,” the source said. “In contrast, most international jewelry brands in China generate between 100 million and 200 million yuan per store annually.”
Despite a broader slowdown in high-end consumer spending, Laopu Gold continues to shine, driven by its fusion of traditional Chinese motifs and investment-worthy gold craftsmanship.
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