At the newly opened Laopu Gold store in Hong Kong’s IFC Mall, it was quiet on a weekday afternoon. The barriers at the entrance, the spacious lounge and private rooms inside all exude the luxury image the brand aspires to project.
A few days ago, long queues were seen before the shop’s opening, with some arriving hours earlier to secure a chance to buy gold jewellery at a discount as part of its inaugural promotion.
The Beijing-based jeweller has defied China’s sluggish consumption trend, in which luxury spending has plummeted since the Covid-19 pandemic.
According to analysts, Laopu Gold has positioned itself as an aspirational domestic luxury brand that offers traditional Chinese designs which appeal to the younger generation – a demographic that follows social media trends closely and is increasingly cost conscious, particularly amid rising gold prices.
“Laopu has the potential to become China’s first luxury player,” Nomura said in a note. While some have dubbed Laopu China’s Hermes or China’s Cartier, some argue it still has a long way to go.
