Editor’s Note
A recent Rothschild report projects that Chinese jeweler Lao Pu Gold may surpass Richemont’s jewelry revenue in China by 2025, highlighting it as an exceptional case of domestic brand success.
International financial institution Rothschild recently released a luxury industry report containing a notable projection: Lao Pu Gold’s absolute revenue is expected to surpass that of Richemont Group’s jewelry business in the Chinese market by 2025. The report emphasizes that the success of Chinese brand Lao Pu Gold is an exceptional case.
Switzerland-based Richemont Group is one of the world’s top three luxury conglomerates, alongside LVMH and Kering. Rothschild’s report indicates that Richemont’s jewelry portfolio, which includes brands like Cartier, Van Cleef & Arpels, and Buccellati, will see its combined 2025 performance in China fall short of a single brand: Lao Pu Gold.
This year, the consumption frenzy sparked by Lao Pu Gold has shaken the high-end market. A telling scene has been playing out in Beijing, Shanghai, and other major cities’ high-end malls: sparse customer traffic in traditional luxury brand stores contrasts sharply with long queues outside Lao Pu Gold outlets, vividly reflecting a profound transformation in the high-end consumer market.
According to Lao Pu Gold’s 2025 interim report, its first-half store efficiency reached nearly 5 billion yuan, significantly surpassing all domestic and international jewelry brands and even leading traditional luxury giants. Frost & Sullivan research shows a 77.3% consumer overlap rate between Lao Pu Gold and the world’s top five luxury brands, indicating a large-scale shift of traditional luxury consumers.
The Rothschild report points out that Lao Pu Gold resonates with consumers seeking products that reflect Chinese tradition and values by leveraging cultural symbols and intangible cultural heritage craftsmanship. This creates a significant difference in product positioning and brand identity compared to international brands like Cartier and Van Cleef & Arpels.
Simultaneously, the Rothschild report clarifies that Lao Pu Gold is an individual phenomenon, not indicative of a broader trend where Chinese domestic brands universally outperform international ones.
On November 27, HSBC also disclosed in a research report that the annual sales of Lao Pu Gold at a single store in Beijing SKP reached 30 billion yuan. Based on Beijing SKP’s total annual sales last year (approximately 220 billion yuan), Lao Pu Gold accounts for about one-seventh of the mall’s overall sales. Beijing SKP, known as the “world’s top-performing department store,” is packed with hundreds of international luxury brands.
