Laopu Gold, the Beijing-based jeweller known for its fixed-price, high-carat gold pieces, more than tripled revenue in 2025, and bucked both volatility in gold prices and the weakness in China’s luxury market.
Often called the 'Hermes of gold', the company reported a revenue of 27.3 billion yuan ($3.95 billion) for the year ended December 2025, up 221% year on year, while net profit rose 230% to RMB4.87 billion ($708 million), according to its annual results announcement.
The performance came during a turbulent period for gold. After prices surged in the midst of the US-Israel-Iran war, gold suffered its steepest monthly decline since 1983 in March.
A model built on heritage, scarcity and premium pricing
The results arrived against a turbulent backdrop. Gold prices swung sharply, first spiking is the midst the US-Israel-Iran conflict, then suffering their steepest monthly decline since 1983 in March. Meanwhile, Bain & Company estimates China's personal luxury market contracted by 3–5% over the year, with major global groups including LVMH and Kering reporting softer China demand.
At the heart of Laopu's success is its focus on gufa huangjin, traditional Chinese handcrafted goldware that blends cultural heritage, artisanal craftsmanship, and investment logic. Unlike conventional Chinese jewellers that price products by the gram against daily spot rates, Laopu operates a franchise-free model built on high-carat exclusivity, product scarcity, and substantial price premiums.
The result is that gross margins are consistently above 40%, compared to 22% at Chow Tai Fook and just 8% at Lao Feng Xiang, making it one of the most profitable shops in the market, according to a report by Campaign Asia-Pacific.
In a dynamic rarely seen outside the most coveted luxury houses, Laopu's price increases appear to accelerate demand. According to Citi research, the brand implemented its steepest hike of 27% in February 2025, following three earlier markups of 18% and 25% during the year. Rather than deterring shoppers, each increase was met with longer queues outside stores—a textbook Veblen effect, where rising prices amplify desirability.
Where Laopu sits against Tiffany, Cartier and Chow Tai Fook
Linda Yu, general manager at Red Ant Asia, explains what sets Laopu apart.
“The remarkable growth of Laopu Gold amid a downturn in the international gold market reveals a shift in how Chinese consumers define premium," Yu said.
"By reviving traditional handicraft techniques and embedding Eastern aesthetics, Laopu Gold transforms gold into wearable cultural assets. Its no-discount pricing strategy appeals to high-net-worth individuals, while the intrinsic value of gold meets their demand for asset safety. Against the backdrop of rising domestic heritage brands, consumers are increasingly willing to pay the same premium for intangible cultural heritage and original Chinese design as they would for established international luxury houses," she added.
“The defining criterion for premium has thus shifted from expensive to right—whether a brand can offer irreplaceable cultural depth and value certainty that withstands market cycles.”
That shift is also visible in how the brand is discussed online. Media intelligence firm Carma said Laopu has entered the competitive set in mainland and Hong Kong, but conversation around the brand is pegged to price and value rather than more established luxury associations.
Based on data from the past 30 days across mainland China and Hong Kong, Carma found that Laopu generated a similar volume of conversation to Tiffany and Chow Tai Fook, and more than Cartier.
The brand also recorded relatively strong sentiment, with 73.9% positive mentions, compared with 64.9% for Cartier, 58.4% for Tiffany & Co and 80.9% for Chow Tai Fook. Neutral sentiment for Laopu stood at 17.4%, while negative sentiment was at a low of 8.7%.
Interestingly, discussion around Laopu is centred on price, gold value, market conditions, cost and whether the brand was worth buying. That suggests consumers are evaluating Laopu in functional terms, as per Carma, rather than through the emotional or symbolic lens more commonly associated with established luxury brands.
By comparison, Cartier is closely linked to brand value, heritage and global prestige; Tiffany pops up more often in lifestyle and entertainment contexts; and Chow Tai Fook is tied most strongly to gold prices, investment and precious metals. Carma said Laopu has achieved comparable visibility, but not yet the established equity or trust enjoyed by established rivals.
Retail expansion
In the first half of 2025, the brand opened five new stores in mainland and Singapore, and is now operational in 50 locations, including its first Singapore boutique at The Shoppes at Marina Bay Sands. This year, it plans to add three to four additional stores in Hong Kong, Macau, Singapore and Japan, with Tokyo’s Ginza among the locations under consideration.
The company’s expansion strategy remains focused on top-tier luxury retail destinations.
Source: Campaign Asia-Pacific
