BEIJING / HONG KONG, 17 November 2025 – As Western luxury powerhouses such as LVMH Moët Hennessy Louis Vuitton SE and Gucci grapple with a cooling China market, local premium brands, notably Laopu Gold and Songmont, are emerging as notable winners. These Chinese-origin brands are capturing more attention from domestic consumers by aligning culture, craftsmanship and value in ways that Western luxury houses are struggling to match.
According to the original Bloomberg coverage, Chinese shoppers are increasingly favouring these home-grown luxury brands, citing cultural identity, investment value and craftsmanship as key draws, factors that are reshaping how luxury is defined in China’s biggest luxury market.
Why the Shift is Happening
Several key trends are driving this shift:
- Cultural resonance & heritage branding: Laopu Gold has positioned itself explicitly as a modern luxury brand rooted in Chinese tradition, using motifs such as dragons and phoenixes, 24-carat gold and boutique experiences. Its success suggests many affluent Chinese consumers now prioritise luxury brands that reflect their own identity rather than imported European heritage.
- Value and investment appeal: In a market where trust in property and other asset classes is under pressure, jewellery-and-gold brands offering tangible value, cultural cachet and perceived scarcity are gaining traction. Laopu, for example, has seen dramatic revenue growth by leaning into this “luxury + investment” positioning.
- Western luxury slowdown in China: Some Western luxury groups face headwinds in China, slowing growth of status-driven spending, rising competition, and an evolving younger consumer segment less reliant on Western brands. This creates an opening for Chinese brands to capture share.
- Selective rollout and premium positioning: Chinese premium brands are often more selective in retail presence, high-margin design focus and digital engagement, allowing them to build aspirational prestige with fewer locations and a tighter brand experience.
- Nationalism and ‘guochao’ trends: The “China-chic” (国潮) phenomenon is providing tailwinds for national-brand luxury players as younger consumers seek home-grown prestige rather than just global logos.
Implications for Investors and Brand Strategy in Asia-Pacific
- Luxury-brand investors: adjustment required. Investors in global luxury-houses must account for rising competitive pressure from Chinese domestic brands, which may erode margin growth, pricing power or expansion dynamics in Greater China.
- Emerging brand opportunity. Regional players and investors should watch Chinese premium brands like Laopu and Songmont as potential winners; their growth trajectory may draw international expansion or acquisition interest.
- Supply-chain and retail strategy rethink. For Western firms, the lesson is that localisation, cultural storytelling and value alignment matter more than simply transplanting global brand frameworks. In Asia-Pacific, this may mean deeper local partnerships, customised collections, differentiated pricing and brand-experiences tailored to Chinese consumers.
- Valuation risk for incumbents. Brands heavily reliant on China-driven growth may face downside if domestic alternatives capture higher share. Analysts should revisit growth assumptions in their models.
- Regional spill-over potential. If Chinese luxury brands scale internationally (e.g., Southeast Asia, Middle East), they could challenge Western brands in other growth markets too, particularly where cultural affinity and local-heritage storylines resonate.
What to Monitor Going Forward
Key variables for market watchers, brand strategists and investors include:
- Quarterly or annual growth data from Chinese luxury-brand challengers (store-rollout, same-store sales, digital engagements).
- Market-share shifts in the Chinese luxury segment: tracking how much share Chinese brands are taking from European houses.
- Western luxury-house earnings and guidance with respect to China: any commentary around slower growth, pricing pressures or shift in product mix.
- Expansion strategies of Chinese premium brands: whether Laopu or Songmont move into international retail, collaborations, or premium verticals beyond jewellery.
- Consumer sentiment among Chinese high-net-worth and affluent millennials/Gen Z: how values of “luxury” are shifting in terms of brand origin, investment vs. consumption, and cultural storytelling.
- Pricing, margin and store-economics metrics: whether challengers can maintain premium price points and exclusivity while scaling.
- Brand equity durability: critical for long-term luxury success; whether these local brands can build the heritage, craftsmanship and global recognition needed to become long-term icons.
