Laopu Gold Co, a fast-growing Chinese heritage gold jewelry brand, is rapidly transforming the global luxury landscape. Since its Hong Kong IPO in June 2024, the company’s stock price has surged more than 22-fold, reaching HK$881 from an initial HK$40.5, with a market valuation of HK$152.2 billion (approximately $19.39 billion). This meteoric rise places Laopu alongside Hong Kong’s hottest consumer names, such as Mixue and Pop Mart.
Unlike traditional gold retailers like Chow Tai Fook, Laopu’s strategy uniquely combines gold’s intrinsic value with bold designs rooted deeply in Chinese cultural heritage. This approach has resonated strongly with consumers, driving revenue to 8.51 billion yuan ($1.18 billion) in 2024—a 167.5% increase year-on-year—while net profits soared 253.9% to 1.47 billion yuan.
Global luxury executives have taken note. Johann Rupert, chairman and former CEO of Richemont, which owns Cartier and Van Cleef & Arpels, emphasized that jewelry remains a culturally driven market and applauded Laopu’s success in transforming heritage into a compelling brand. Similarly, LVMH’s managing director Stephane Bianchi acknowledged the “explosive growth” of domestic Chinese jewelry brands amid a consumer shift toward local luxury labels.
Laopu’s product pricing primarily targets China’s rising middle class, with most items priced between 10,000 and 50,000 yuan. This aligns with evolving consumer preferences, moving beyond merely following Western luxury trends toward establishing a distinct, culturally rooted luxury ecosystem. Shoppers like Kathy Shi of Shanghai attest to this shift, describing immersive experiences at Laopu stores that stretch hours, highlighting the brand’s strong emotional and cultural connection with customers.
Fundamentally, Laopu leverages gold’s enduring value as the foundation for its premium positioning. Zhou Ting, dean of the Yaok Institute, notes that the brand’s sales success is anchored in the high perceived worth and value preservation associated with gold jewelry.
Despite operating only 36 stores across 15 cities by the end of 2024, Laopu has earned the reputation of a “single-store king.” Offline revenues averaged 328 million yuan per store, significantly above industry norms. Its flagship Beijing SKP Mall location alone accounts for a substantial portion of the city’s gold sales.
Chairman and founder Xu Gaoming has set ambitious targets, aiming for 1 billion yuan in annual sales per store by April and instituting a policy to close stores generating less than 500 million yuan.
Laopu is also riding a broader industry wave. According to Frost & Sullivan, China’s heritage gold jewelry market expanded from 13 billion yuan in 2018 to 157.3 billion yuan in 2023, growing at an impressive compound annual rate of 64.6%. The sector is projected to exceed 421 billion yuan by 2028. Laopu captured a 2% market share in this segment in 2023, alongside 0.6% of the broader gold jewelry market.
Looking ahead, optimism remains strong. Citigroup maintains a “buy” rating on Laopu, citing narrowing price premiums between Laopu’s premium designs and the mass market amid rising gold prices. The bank forecasts triple-digit same-store sales growth into late 2025 and recently raised its price target to HK$1,084.
In blending Chinese cultural heritage with modern luxury branding and gold’s timeless value, Laopu Gold is redefining the luxury jewelry landscape—both at home and abroad.
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