How a Chinese gold brand is glittering from the 618 shopping spree

Chinese gold brands emerged as a standouts in this year's 618 shopping festival, which has lasted over a month. Their strong performance underscores a growing consumer appetite for gold products, among the other trends Campaign noted a few weeks ago. 

Tmall kicked off its 618 shopping festival on May 18th with an impressive launch. In the first hour of sales, more than 13,000 brands saw their gross merchandise value (GMV) double compared to the same period last year. Notably, the high-end gold brand Laopu Gold achieved record-breaking sales of over RMB 40 million (US$5.6 million) within just the first hour, marking an incredible 800% increase compared to the previous year.

By June 18, the Tmall platform recorded significant sales of high-craftsmanship gold products, with Lao Pu Gold exceeding 1 billion RMB (US$1.39 billion) in GMV from its flagship store sales. 

As younger consumers embrace the cultural significance of gold, its value is evolving from mere material worth to an appreciation of craftsmanship and cultural identity. Other prominent brands, such as Lao Feng Xiang, gained millions of viewers during a live stream showcasing its phoenix crown, while Chow Tai Fook's Heritage Collection experienced over 40% year-over-year growth.

Despite fluctuations in gold prices in China, what marketing insights can be derived from such phenomenal success, and how do social media discussions during the same period reflect this trend? Campaign engaged with marketing experts in China to explore these questions.

Data analysis from Meltwater, an online media, social, and consumer intelligence company, reveals that trending hashtags such as #老铺黄金, #当代年轻人黄金血脉觉醒, and #金饰 indicate a growing interest in gold jewellery brands in China. This trend highlights a focus on traditional craftsmanship combined with modern consumer preferences. Brands like Chow Tai Fook and Laopu Gold are recognised for their strong market positioning and effective consumer engagement, primarily due to their cultural values. Young consumers increasingly view gold jewellery as a status symbol and a personal adornment, influenced by high-quality craftsmanship and emotional significance.

Jolin Guan, associate partner of Prophet Shanghai, suggests Laopu Gold "marked a dimensional shock to traditional jewellery logic through cultural pricing power", further elaborating that "while the industry still measures value by carat weight and store counts, Laopu Gold's 'Palace Museum-replica gold urn' sent a seismic message: gold's ultimate value transcends raw material; it's measured by civilisations it carries". Guan points out that the high-net-worth clients who are paying over 30% craftsmanship premiums aren't merely buying household adornments but are investing in "tangible cultural heirlooms".

Yimin Wang, Dao Insights editor and a long-time observer of Chinese brands, including Laopu Gold, echoed shares similar insights. "By evoking traditional goldsmithing craftsmanship, it is more in tune with 'guochao' and 'intangible cultural heritage' type of branding and marketing," he notes, sharing how this requires a deeper understanding of Chinese culture and craftsmanship while at the same time suggesting that Laopu Gold can learn from Western luxury brands in how they effectively build their identities around craftsmanship and culture.

On the other end, global brands are closely observing the Chinese gold rush, according to Max Lee, managing director of DJM Consulting and global partner of China Media Integration at EternityX. He noted that Laopu Gold has already reshaped the competitive landscape. “International giants such as Cartier and Tiffany are paying attention, as Laopu provides something that is hard to replicate: a deep cultural connection with Chinese consumers”, he added. 

Furthermore, Lee observed that competitors are following emerging trends. “What’s remarkable is that Laopu has successfully introduced a new lens for Chinese luxury consumers — blending culture, heritage and investment value into one proposition. This is pushing both international and local competitors to rethink how they serve an increasingly sophisticated Chinese luxury audience who want brands that speak to their own identity”.

Meltwater compared the brand volume for Lao Feng Xiang (老凤祥), Laopu Gold (老铺黄金), Chow Tai Fook(周大福), and Chow Sang Sang (周生生) over the past two months using social media monitoring. The analysis revealed that brand volume fluctuates with gold prices, and Laopu Gold still has significant room for improvement in branding, even compared to its domestic competitors.

Meanwhile, Laopu Gold demonstrates exceptionally strong performance on the RedNote (Xiaohongshu) platform in terms of queries, highlighting its strong appeal to the younger generation of consumers. RedNote needs to enhance its monetisation and e-commerce strategies. Nevertheless, Laopu Gold saw significant success in conversions during the 618 sales event, as RedNote is now directly connected to Tmall through notes on the platform.

“While Laopu Gold and global luxury jewellery brands may serve different core audiences, there’s no question a steal-share dynamic is playing out in the short term," says Nicky Wang, CEO of We Red Bridge. As she further explained, “the longer-term threat to global luxury hinges on two things: how quickly these brands can demonstrate cultural fluency, emotional relevance, and local community connection—and whether Laopu can transition from a viral success to a brand with enduring value across economic cycles”.

According to Lee, Laopu Gold has so far been able to successfully "transform cultural pride into financial value and focuses on wealth preservation, making it a niche, premium, and scarcity-driven brand." He adds, “in my view, Laopu’s model — built around premium pricing, scarcity, and investment-grade gold — gives it far more defensible long-term demand. Its growth trajectory is much closer to how traditional luxury maisons sustain relevance across generations.”

L-R: Jolin Guan, Max Lee, Nicky Wang and Yimin Wang

What's next for Laopu Gold?

It has been almost a year since Laopu Gold's IPO in Hong Kong on June 28, 2024. The company's share price has grown more than tenfold, and its revenue has nearly tripled to RMB 9.8 billion (US$1.36 billion), resulting in a remarkable 254% increase in net profit. 

Wang from Dao Insights noted that there are risks related to the potential inflation of its market value driven by investor demand and its cash flow, particularly highlighted by its recent share placement. 

Regarding the future growth strategy, Wang, CEO of We Red Bridge, emphasises that "converting brand buzz into long-term desirability should be Laopu's next focus. While they've done well to break from traditional gold pricing models, the reality is they will always remain partially tethered to gold's market dynamics. The challenge now is to capitalise on current momentum to grow market share quickly, while simultaneously investing in long-term brand-building initiatives that can protect margin when the gold cycle inevitably turns". 

Beyond this, branding veteran Guan of Prophet says Laopu Gold, must also avoid some of the common pitfalls that often plague luxury labels. "Laopu Gold has the opportunity to redefine what luxury means in China," Guan said. But to do that, it must "curate cultural sanctuaries, not just stores." 

She recommended transforming flagship boutiques in Beijing, Shanghai, Guangzhou, and Shenzhen into immersive gold-art museums. "Featuring live master artisan workshops where the sound of hammers striking gold becomes performance art." These spaces should feel like temples of heritage, not just retail."

Guan also urged the brand to shift its messaging from technical specifications to cultural storytelling. "Stop touting gold purity. Instead, co-produce Art in Gold: China's Legacy with the Palace Museum. Turning each piece become a patinated page of history." She also brought an ambitious suggestion by positioning Laopu Gold as the industry's standard-bearer. "Launch an Imperial Craft Authentication in partnership with the Palace Museum, codifying techniques like hand-chiselling depth. When competitors scramble to meet your benchmark, you don't just trade—you reign."

Laopu Gold Shanghai flagship store

As a branding strategist, Lee from DJM Consulting believes the brand's future lies not in scale, but in storytelling. "Looking ahead, I believe Laopu’s marketing playbook should continue building on its core: cultural storytelling, exclusivity, and carefully curated experiences," Lee said. "Rather than following the typical luxury advertising model, the brand should deepen its China Pride narrative through collaborations with institutions such as the Forbidden City or the National Museum."

Lee emphasises that Laopu's growth strategy should focus on selective expansion, not rapid proliferation. Digital engagement is also key to Laopu's next phase. "Leveraging digital storytelling — whether through Xiaohongshu, Douyin or private WeChat communities — will allow Laopu to educate consumers about its craftsmanship and deepen its emotional connection with the next generation of luxury buyers," Lee noted.

On the brand's long-term positioning, Lee is clear: Laopu is not chasing scale for its own sake. "Unlike mass-market jewellers, its store network remains highly selective — with boutiques located in Shanghai Plaza 66, Shenzhen MixC, Guangzhou Taikoo Hui, Hong Kong Harbour City, and its first overseas presence soon at Marina Bay Sands Singapore," he says. "Each store opening feels more like a luxury fashion house unveiling, carefully controlled to protect the sense of rarity and exclusivity."

Lee concludes, "Over time, this approach will firmly position Laopu as China’s leading cultural luxury jeweller, standing alongside global names like Cartier and Tiffany, but with an identity rooted uniquely in Chinese heritage."