The luxury strategy of LAOPU GOLD continues to pay off, with demand surging even as prices rise. The company has announced a price adjustment scheduled for the 28th of this month, with the specific new prices to be confirmed at the point of sale. It is anticipated that the overall increase will be approximately 10-15%. Following the announcement on the 18th, queues formed again outside its stores starting the 19th.
Even before the official price hike announcement, a rush to purchase was observed in various locations. In early February, just after 10 a.m. at the TaiKoo Hui mall in Guangzhou, several customers were already lined up outside the LAOPU GOLD store, the only one in the city, which is known for having perpetual queues. Store staff indicated that lines are shorter in the morning but grow significantly longer in the afternoon and evening. To manage customer flow, the brand opened a pop-up store in the mall's atrium in January. During a visit, a queue was also present at the entrance of this temporary location.
One customer, who had waited over 30 minutes, stated, "I've been trying to buy the 'Zhuangyuan Jidi' piece, but it's been out of stock on my previous visits. I came as soon as I heard it was replenished." Since late January, LAOPU GOLD has been running a Spring Festival promotion offering a discount for every 1000 yuan spent, which, combined with the expectation of a price increase, has driven a significant sales peak.
Founded by Xu Gaoming, LAOPU GOLD has, over 16 years of operation, positioned itself firmly in the high-end luxury segment, even attracting attention from the founder of LVMH. As of the market close on February 20th, its market capitalization reached approximately HKD 136 billion. Against a backdrop of rising gold prices, LAOPU GOLD's performance has accelerated sharply, with revenue for 2025 projected to reach 27 billion yuan.
Demand appears to intensify with each price increase. "Since the promotion started in January, many styles have sold out, and the restocking timeline is uncertain," explained a staff member. Xu Gaoming's team specializes in ancient-method handmade gold pieces, blending Chinese intangible cultural heritage with modern designs. Classic collections like the Gourd, Rose Window, and Vajra Pestle are perennially popular.
Since the beginning of 2025, the price of gold has surged over 60%, and LAOPU GOLD has implemented three price increases within the year. The hike in late October was particularly steep, ranging from 18% to 25%. In stores, all jewelry items are sold at fixed prices, mostly falling between 10,000 and 100,000 yuan. The gold artifact series, primarily plain gold ornaments, is divided into Collectible and Heritage lines. These higher-priced items, ranging from hundreds of thousands to millions of yuan, are often displayed in study-style showrooms and typically targeted at VIP clients.
While competitors have seen sales decline amid high gold prices, LAOPU GOLD thrives on its 'higher price, stronger demand' model. One consumer noted, "When other brands were priced at 500 yuan per gram, LAOPU GOLD was already at 1000 yuan. Now that others are at 1500 yuan, some of LAOPU's plain gold pieces are around 1600 yuan. The superior craftsmanship makes it more cost-effective in comparison."
Out-of-stock styles frequently include pieces from the Zhuangyuan Jidi, Peace Bell Bracelet, Vajra Pestle, Peace Buckle, and Filigree Bracelet series. The perceived value retention of LAOPU GOLD products further fuels their popularity. Entirely handmade, production capacity is limited, and with a restrained number of stores, an aura of scarcity is cultivated. Similar to brands like Hermès, LAOPU GOLD adjusts prices once or twice annually, creating stable consumer expectations. Reportedly, on secondary market platforms, its products are valued similarly to pre-owned luxury goods and can be bought back at a discount to the official price.
Anticipating a post-holiday price increase, many consumers are buying early. The company has implemented purchase limits: a maximum of two pieces of the same style and five pieces of different styles per customer. One shopper was observed immediately requesting to buy six 'Zhuangyuan Jidi' items upon entering a store, each priced around 35,000 yuan.
Xu Gaoming stated clearly in March 2025 that price adjustments would continue based on the brand's positioning and pricing strategy, with the spot price of gold influencing only the magnitude of the change.
The combination of rising prices and volumes has been highly profitable for Xu Gaoming and LAOPU GOLD. In the first half of 2025, the company generated revenue of 12.3 billion yuan, a 2.5-fold increase. Benefiting from the high margins of its fixed-price products, it achieved a remarkable net profit of 2.26 billion yuan for the six-month period.
Instead of pursuing widespread retail expansion, Xu has focused on high-spending customer segments, perfecting a high-efficiency single-store model. His strategy is "fewer but finer, larger but more beautiful," with stores located in upscale malls like SKP and Mixc. Currently, there are about 50 stores nationwide. These locations emphasize experience, often featuring Chinese-style studies, tea rooms, and private VIP areas, primarily catering to high-net-worth individuals.
Store staff are on fixed salaries and are defined by Xu as "cultural interpreters" rather than traditional salespeople. Customers receive one-on-one service where associates explain the craftsmanship heritage, design concepts, and cultural symbolism of the products, without aggressive sales tactics.
It is estimated that each store generates an average monthly revenue of 50 million yuan. Xu himself claims that the sales efficiency of some stores surpasses that of Hermès, with an ambition for the average store efficiency to exceed 1 billion yuan in the future. For instance, the LAOPU GOLD store in Beijing's SKP mall, the national sales leader, achieves annual sales of 3 billion yuan, accounting for one-seventh of the mall's total sales.
LAOPU GOLD's customer base heavily overlaps with that of luxury brands. Research indicates a 77.3% overlap with consumers of international luxury houses like Louis Vuitton, Hermès, and Cartier. This demographic possesses strong purchasing power and high brand loyalty. Disclosures show that 60% of LAOPU GOLD's sales revenue comes from repeat customers. Clients with annual spending exceeding 300,000 yuan constitute less than 1% of the customer base but contribute over a quarter of total revenue. Customers with cumulative spending over 300,000 yuan become loyalty members, receiving a 5% discount and exclusive holiday gifts. In 2025, the company established a dedicated High-Value Client Management department. Xu Gaoming explained that the focus is "not just on managing existing clients, but more on acquiring new high-value customers."
The recent surge in popularity has allowed LAOPU GOLD to attract a new wave of clients. In the first half of 2025 alone, its loyal membership base grew by 130,000, equivalent to 80% of the previous full year's growth. With the current buoyant sentiment towards gold consumption, Xu Gaoming is accelerating store expansion. Previously cautious, opening only four or five stores annually, the brand added 14 new locations in 2025 and plans to open another 4-6 stores domestically in 2026.
Creating a successful homegrown luxury brand story in China has historically been challenging. To date, Xu Gaoming and LAOPU GOLD appear to be the closest to achieving this feat. In mid-September 2025, Bernard Arnault, Chairman of LVMH, personally visited a LAOPU GOLD store in Shanghai, examining the study displays and observing pieces from the Gourd, Pendant, Cross, and other gold artifact collections.