Editor’s Note
As competitive pressures mount, established Chinese jeweler Lao Fengxiang is making a strategic pivot toward the luxury segment, directly challenging rivals like Lao Miao Gold for high-end consumers. This move signals a significant shift in the domestic jewelry market as heritage brands adapt to evolving demands.
Under multiple pressures, the veteran gold and jewelry retailer Lao Fengxiang has entered the luxury track, embarking on a luxury dream, directly targeting the core consumer base of Lao Miao Gold, aiming to compete with Lao Miao Gold for business.
Recently, the gold price trend has been like a roller coaster, first repeatedly hitting new highs, then experiencing a “waterfall”-like decline. Amidst the gold price shock, not only are Shenzhen Shuibei’s prices attracting attention, but the market movements of those large gold and jewelry retailers are also worth noting.
New Fortune has observed that the well-known gold and jewelry chain brand Lao Fengxiang has recently initiated significant market actions, starting its high-end transformation process and continuously making moves in the luxury market.
In the movie The Grandmaster directed by Wong Kar-wai, there is a classic line: “Not seeking the best, but seeking the most expensive.” The latter part of this line may be becoming Lao Fengxiang’s new goal.
How to become a luxury brand? Companies either need to build themselves into a luxury brand or align with one. An industry insider from a listed gold and jewelry company told the media that without a luxury foundation, finding a luxury partner is one of the fastest ways to enter the market.
Reportedly, Lao Fengxiang has chosen the model of “equity investment + brand agency,” with frequent major market actions.
In September, Lao Fengxiang announced an investment of 50 million yuan to establish Shanghai Lao Fengxiang Luxury Trading Co., Ltd., mainly engaged in the wholesale and retail of high-end products such as gold and silver jewelry, diamonds, and watches.
Furthermore, Lao Fengxiang also obtained the distribution rights for MAP luxury goods in the Middle East region—Shanghai is the exclusive agency area, while other Middle East regions are non-exclusive. The procurement commitment shows that between 2025 and 2027, Lao Fengxiang’s total procurement amount will not be less than $13 million.
Clearly, Lao Fengxiang is determined to make big moves in the luxury market.
So, why does Lao Fengxiang want to pursue a high-end and luxury path? The core and key reason is the increasing pressure from real business operations.
Continuously rising and sharply fluctuating gold prices have benefited mid-to-upstream gold mining and trading companies but have suppressed gold consumption demand, leaving many consumers hesitant and causing poor performance for retailers like Lao Fengxiang.
According to Lao Fengxiang’s financial report, revenue for the first half of this year was 33.356 billion yuan, a year-on-year decrease of 16.52%, with net profit attributable to the parent company of 1.220 billion yuan. Faced with declining revenue and profit, Lao Fengxiang has significant operational pressure.
From the perspective of New Fortune, if Lao Fengxiang wants to improve its performance, it has to come up with new market strategies and target new business markets. The high-end luxury market is one of its few options.
Lao Fengxiang is targeting high-end gold consumers and the luxury market, while also telling a new story to the capital market, which is also beneficial for Lao Fengxiang. It depends on whether investors recognize and are optimistic about the prospects of its new business.
Perhaps to some extent, Lao Fengxiang’s important strategy of targeting the luxury market can be described as “self-rescue.”
The gold and jewelry industry is inherently traditional, with homogeneous products and transparent gold prices. Retail market prices also fluctuate with gold prices. Only leading companies like Chow Tai Fook can enjoy a certain brand premium.
However, in the gold and jewelry retail market over the past two or three years, while Chow Tai Fook and Lao Fengxiang faced difficulties, the strongly emerging Lao Miao Gold appeared different, standing out from the crowd.
In August this year, the topic of Lao Miao Gold’s price increase once triggered market discussion. Lao Miao Gold conducts two or three price adjustments annually, with a general range of 5% to 12%. Although Chow Tai Fook also raised prices, the topic’s heat was far less than that of Lao Miao Gold’s price increase.
To achieve differentiation, Lao Miao Gold chose a different path from other gold and jewelry retail brands. It focuses on the ancient gold concept, promoting the integration of Chinese palace ancient gold craftsmanship with modern design concepts, and externally claims to be China’s first ancient handmade goldware brand.
Ancient gold craftsmanship already exists and is not Lao Miao Gold’s exclusive craft, but Lao Miao Gold directly and continuously elevates the brand’s height, targeting high product quality, consumers who like gold products, and particularly those who prefer unique gold jewelry among the mid-to-high-end consumer and enthusiast groups.
Lao Miao Gold tells its own brand story and also moves towards the high-end in sales channels and models. It opens stores in top-tier high-end shopping centers in major cities, such as SKP and MixC, creating a unique high-end brand image.
High-end commercial consumption is endowed with more emotional consumption attributes. Consumers pay a higher brand premium. In terms of shopping, experience, and consumption models, Lao Miao Gold directly “copies” the practices of top luxury brands: storefront queues, limited flow, allowing consumers to experience in-store, providing sufficient尊贵体验 for many consumers accustomed to buying high-end luxury goods. Lao Miao Gold has thus become the “Hermès of the gold world.”
Lao Miao Gold, relying on its high-end luxury route, has earned a full harvest. According to Lao Miao Gold’s financial report, for the first half of 2025, the company achieved revenue of 12.354 billion yuan, a year-on-year increase of 251.0%; period profit was 2.268 billion yuan, a year-on-year increase of 285.8%; non-IFRS adjusted net profit was even higher at 2.351 billion yuan, a year-on-year surge of 290.6%.
Lao Miao Gold is extremely popular, especially in the high-end market where business is booming. This makes other gold and jewelry retailers who are having a hard time envious, and of course, this includes Lao Fengxiang.
What Lao Fengxiang wants to target more is the same mid-to-high-end consumer group as Lao Miao Gold’s core consumers.
As of the end of June 2025, Lao Miao Gold had 480,000 user groups (referred to as “loyal members”). Most reside in first-tier and new first-tier cities, are women aged 25 to 45, and men aged 30 to 55. The key is that they have close to 80% user overlap with luxury brands like Hermès and Bvlgari.
High-end gold and jewelry consumption can also be considered luxury consumption. This group has strong purchasing power and a certain degree of brand loyalty, which is precisely the point that Lao Fengxiang values in pursuing the luxury route.
Now, for Lao Fengxiang to enter the luxury market, besides referring to world-class luxury brands, another reference is Lao Miao Gold.