【Shanghai, Ch】LV Boss Visits Laopu Gold and Songmont: A Lesson in ‘Chinese Cultural Narrative’

The recent news that Bernard Arnault, the head of LVMH Group, personally visited 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 focus on the Chinese market. Beyond his routine visits to LVMH-owned luxury brand stores, he also toured the LV “Louis Vuitton Yacht” and the newly unveiled “MISS DIOR” exhibition. The unexpected addition of these two store visits has fueled speculation about potential acquisitions. However, the industry largely views this as a sign of increased attention from the international luxury giant towards 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 about 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 previously noted that “Chinese consumers are showing increasing interest in local brands, and some Chinese domestic 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, up 291% year-on-year, with both revenue and profit maintaining 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 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 the long-held belief that European luxury brands are largely immune to threats from local competitors globally. The report notes that Laopu Gold’s competitive threat to Cartier is expanding. In response, Johann Rupert, Chairman of Cartier’s parent company Richemont, personally stated:

Richemont Group CEO Nicolas Bos believes that Laopu Gold, rooted in Chinese culture, has driven desire and vitality in the jewelry market, also helping Richemont maintain its creativity.

At the end-of-August earnings conference, 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 reached 79.3%, and with Bulgari users reached 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 to 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. Laopu Gold is steadily advancing its overseas market布局, with subsequent overseas branches already in planning. Its overseas expansion will follow the brand’s domestic channel strategy, adhering to a high-end positioning where factors like city selection, mall调性, and location are all crucial. The Singapore store is also located adjacent to luxury giants like LV, Hermès, and Chanel.

Subsequently, Bernard Arnault and his team visited the Songmont store at Shanghai’s Qiantan Taikoo Li mall. They engaged in shopping and conversation with staff, and it is reported that he purchased two bags in the end. Leather goods and bags 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, with net profit down 22% to 5.7 billion euros. The core “Fashion & Leather Goods” division saw revenue drop 7% to 19.1 billion euros, with a particularly sharp 9% sales decline in the second fiscal quarter, marking its worst quarterly performance in nearly three decades.

Songmont, as a representative rising local designer bag brand in recent years, has quickly carved out a market niche with its unique Eastern aesthetic design and accessible yet high-quality pricing. The brand’s prices are concentrated in the thousand-yuan range, targeting young urban consumers seeking both design and practicality. Although Songmont has not publicly disclosed specific revenue figures, its sales on Tmall in 2024 were nearly 500 million yuan, and it ranked second on the luggage and bags sales chart during last year’s Double 11 shopping festival (first among domestic bag brands). In terms of positioning, LV and Songmont are not direct competitors—LV is a traditional luxury brand, while Songmont barely touches the “affordable luxury” segment.

However, the industry widely believes this visit was for Bernard Arnault to “scout the competition” for Polène, a Parisian affordable luxury brand in which LVMH recently invested. Last year, LVMH, through L Catterton, made a minority investment in Polène. Polène shares many similarities with Songmont. It is a young brand founded in 2016, targeting the mid-market with简洁 designs. While it has gained some recognition in France and Europe, 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 Shanxi hometown into a deep exploration of Central Plains人文底蕴, transforming traditional Chinese architectural aesthetics into modern handbag design elements. What it conveys to users is an aesthetic that withstands the test of time and a philosophy of long-term use. This从容不迫的人文叙事 is the cornerstone of the brand’s appeal to consumers. Whether it’s the “Central Plains Story” marketing strategy or choosing Grandma Wu Yanshu as a代言人, these are “mysterious realms” that the giant “Louis Vuitton Yacht” cannot comprehend. How to establish an “emotional connection and spiritual resonance” with the vast Chinese consumer market is a lesson international giants are striving to learn.

As Chinese new势力 brands accelerate their rise and domestic consumers gradually become disenchanted with Western luxury brands, coupled with global economic downturn and declining purchasing欲望, 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 Group increasing the weight of “Eastern narrative.”