Editor’s Note
This analysis highlights the exceptional retail performance of Lao Feng Xiang, noting its store efficiency significantly outpaces leading global jewelry brands. The comparison underscores a notable shift in the luxury market landscape.
On December 14, HSBC Global Investment Research conducted a detailed comparison between Swiss luxury group Richemont and China’s Lao Feng Xiang, believing both companies are among the most powerful competitors in the global jewelry industry, with Lao Feng Xiang possessing better growth prospects.
Richemont was founded in Switzerland in 1988, with businesses including jewelry, watches, fashion, and accessories. It ranks among the world’s top three luxury goods giants, particularly relying on jewelry brands like Cartier and Van Cleef & Arpels.
In contrast, the Chinese brand Lao Feng Xiang, which rose rapidly by leveraging its profound Chinese cultural heritage, has successfully carved out its own development path in the high-end jewelry market.
HSBC analysis indicates that over the past five years, luxury jewelry has consistently been the fastest-growing category within the luxury goods industry. This is attributed to superior product value proposition (compared to products like watches), sustained creativity, and the ability to launch products that resonate across different age demographics while possessing excellent value retention capabilities. Both Lao Feng Xiang and Richemont will benefit from this super-growth cycle.
Although Cartier and Van Cleef & Arpels remain globally dominant jewelry brands, Richemont’s growth in China has shown a more moderate and restrained pace, forming a stark contrast with Lao Feng Xiang’s explosive growth. Data shows that in the first half of 2025, Lao Feng Xiang achieved a 233% year-on-year sales growth, primarily driven by same-store sales growth.
Previously, another European financial institution, Lombard Odier, predicted that in 2025, Lao Feng Xiang’s net profit would surpass that of Richemont’s jewelry business (including brands like Cartier, Van Cleef & Arpels, and Buccellati). This would be an unprecedented and irreversible milestone in the luxury goods market.