【Shanghai, Ch】LVMH Chairman Bernard Arnault Visits Laopu Gold and Songmont, Signaling a Lesson in ‘Chinese Cultural Narrative’

The recent news of “LVMH Group Chairman Bernard Arnault personally visiting Laopu Gold and Songmont stores” has sparked widespread discussion within the industry. This trip to China marks Arnault’s third consecutive year of store inspections in the country, underscoring the group’s significant focus on the Chinese market. Beyond his routine visits to LVMH’s luxury brand stores, he also toured the LV “Louis Vuitton Yacht” and the newly unveiled “MISS DIOR” exhibition. The unexpected addition of these store visits has fueled speculation about potential acquisitions. However, industry observers largely interpret this as a sign of the international luxury giant paying greater attention to the “Chinese narrative,” as the brands he chose are precisely two local brands emblematic of this narrative.

Bernard Arnault first visited the Laopu Gold store in Shanghai’s IFC mall, staying for approximately half an hour. According to eyewitnesses, he carefully examined items like gourds, pendants, crosses, and displayed gold pieces, commenting that they were “very exquisite, very interesting.” LVMH has long shown interest in Laopu Gold, with its executives visiting the brand’s stores twice in June this year. LVMH executives have noted that “Chinese consumers are showing increasing interest in local brands, and some domestic Chinese jewelry companies have seen explosive growth in demand.” While not explicitly named, Laopu Gold, as the first Chinese luxury brand to gain high consumer recognition in the market, has to some extent shaken the foundation of international luxury giants in China.

Laopu Gold’s interim results for the six months ended June 30, 2025, show that its half-year sales performance (including tax revenue) reached 14.18 billion yuan, a year-on-year increase of 249%; adjusted net profit reached 2.35 billion yuan, a year-on-year increase of 291%, with both revenue and profit sustaining high growth. According to Frost & Sullivan data, in the first half of this year, Laopu Gold’s average sales per shopping mall reached 459 million yuan, continuing to rank first in mainland China for both average single-store revenue and sales per square meter among all international and domestic jewelry brands. During this year’s 618 shopping festival, Laopu Gold’s Tmall flagship store achieved over 1 billion yuan in transactions, becoming the first gold and jewelry brand to reach this milestone.

A recent Morgan Stanley research report also pointed out that Laopu Gold’s outstanding performance has颠覆ed the long-held belief that European luxury brands have been largely immune to threats from local competitors worldwide for decades. The report indicates that Laopu Gold’s competitive threat to Cartier is expanding. In response, Johann Rupert, Chairman of Cartier’s parent company, Richemont Group, personally stated: “Laopu Gold’s success is deeply tied to China’s cultural confidence, so the brand has benefited greatly from this tailwind.” Richemont Group CEO Nicolas Bos believes that Laopu Gold, rooted in Chinese culture, has driven desire and vitality in the jewelry market, also prompting Richemont to maintain its creativity.

At the end-of-August earnings briefing, Laopu Gold cited another statistic: research shows that the average overlap rate between Laopu Gold consumers and users of five major luxury brands, including LV, Hermès, Cartier, and Bulgari, is as high as 77.3%, indicating its consumer base possesses typical high-end consumption characteristics. The overlap rate with Hermès users is 79.3%, and with Bulgari users, it reaches 80.9%. Bulgari is one of the most important jewelry brands under LVMH. Against the backdrop of a generally sluggish global luxury industry, understanding why Chinese consumers are buying Laopu Gold has undoubtedly become a key question for Bernard Arnault.

Furthermore, Laopu Gold has extended its reach into overseas markets. Its first overseas store opened at Marina Bay Sands in Singapore in June this year. A J.P. Morgan research report indicates that the store’s performance in the first two months far exceeded expectations. N Video reporters learned from market sources familiar with Laopu Gold that the brand is steadily advancing its overseas market布局, with subsequent overseas branches already in planning. Its overseas expansion will follow the same channel strategy as in China, adhering to a high-end positioning strategy where factors like city定位, mall调性, and location are all essential. The Singapore store is also located adjacent to luxury giants like LV, Hermès, and Chanel.

Subsequently, Bernard Arnault and his team visited the handbag brand Songmont’s store at Shanghai’s Qiantan Taikoo Li, engaging in shopping and conversations with staff. It is reported that he ultimately purchased two bags. Leather goods and handbags are traditionally LVMH’s strongest sector. However, the group’s financial results for the first half of fiscal year 2025 show revenue declined 4% year-on-year to 39.8 billion euros, net profit fell 22% to 5.7 billion euros, and core business “Fashion & Leather Goods” revenue dropped 7% to 19.1 billion euros. Particularly, sales in the second fiscal quarter fell 9%, marking the worst quarterly performance in nearly three decades.

Songmont, as a representative rising local designer handbag brand in recent years, has quickly secured a place in the market凭借its unique Eastern aesthetic design and accessible, high-quality pricing. The brand’s prices are集中在the thousand-yuan range, targeting young urban consumers seeking both design and practicality. Although Songmont has not disclosed specific revenue figures, its sales on Tmall in 2024 were nearly 500 million yuan, and it ranked second on the luggage and bag chart during last year’s Double 11 shopping festival (first among domestic bag brands). In terms of positioning, the competitive relationship between LV and Songmont is not strong. LV is a traditional luxury brand, while Songmont barely touches the edge of “affordable luxury.”

However, the industry widely believes this is Bernard Arnault “scouting the competition” for Polène, the Parisian affordable luxury brand in which LVMH recently invested. Last year, LVMH, through L Catterton, made a minority equity investment in Polène. Polène shares many similarities with Songmont. It is a young brand founded in 2016, targeting the mid-range market with简洁designs. While it has gained some recognition in the French and European markets, it still needs to expand its influence in North American and Asian markets. In June this year, Polène’s first Chinese store opened next to an LV store in Beijing’s Sanlitun,同时entering e-commerce and social platforms like Tmall and Xiaohongshu.

Songmont’s brand core is its commitment to Central Plains culture. Founder Fu Song extends her nostalgia for her hometown in Shanxi into a deep exploration of Central Plains cultural heritage, transforming traditional Chinese architectural aesthetics into modern handbag design elements, conveying to users an aesthetic that withstands the test of time and a philosophy of long-term use. This从容不迫cultural narrative is the cornerstone of the brand’s appeal to consumers. Whether it’s the “Central Plains Story” marketing strategy or choosing actress Wu Yanshu as its代言人, these are “mysterious realms” that the giant “LV ship” struggles to comprehend. How to establish “emotional connection and spiritual resonance” with the vast Chinese consumer market is a lesson international giants are striving to learn.

As Chinese new force brands accelerate their rise, domestic consumers are gradually becoming disillusioned with Western luxury brands. Coupled with the global economic downturn and declining purchasing desire, it has become more difficult for luxury giants to “defend their城池.”

Bernard Arnault’s personal visits to Laopu Gold and Songmont demonstrate that LVMH is actively adjusting its understanding and strategy for the Chinese market. In June this year, Chinese young designer Kexin Zhang, a graduate of Tianjin Academy of Fine Arts, won the top honor in the LV Accessories Design Graduate Competition and joined LV’s leather goods and accessories department, another signal of LVMH increasing the weight of “Eastern narrative.”