Lei Jun and others are betting on the next "LAOPU GOLD"

A year ago, spending 30,000 yuan to buy a gold bracelet might have been considered "foolish spending"; today, the same amount of money can only buy a small pendant at an ancient gold shop—after waiting in line, coordinating supplies, and enduring a one-year production period.

Even more surreal is that the buyers of these "sky-high" gold ornaments are those high-end consumers who usually purchase Hermes and LV. When the price of a gold pendant exceeds that of an entry-level Chanel bag, and customers need to scramble for gold jewelry like they do for Moutai, a disruptive consumption phenomenon is reshaping the entire luxury market.

After the ancient gold track pioneered by LAOPU GOLD became popular, a batch of followers also emerged—LinZhao Jewelry currently accepts 12 orders per week, and popular styles require coordination to purchase, with a production period of up to one year; BaoLan's popular styles are in a long-term pre-sale state. These brands are even more extreme in craftsmanship and scarcity marketing than LAOPU GOLD.

The capital market is equally sharp. In early December, BaoLan and LinZhao Jewelry successively completed financing of over 100 million yuan, backed by heavyweight investment institutions such as Lei Jun's Shunwei Capital and global luxury giant Kering Group.

With investment institutions continuously stepping in and giants and moguls betting across industries, why has ancient gold gained market favor? When production capacity constraints meet large-scale expansion, and craftsmanship encounters commercialization, who will become the next LAOPU GOLD?

From "Selling by the Gram" to "Sky-High Collectibles"

LinZhao Jewelry's live streaming room may be the most "abnormal" existence in the entire gold industry: on a weekday morning at 11 a.m., only about 80 people are online, yet the host calmly "discourages" impatient fans from buying.

"We can't mass-produce, we can only make them one by one." Faced with the difficulties of purchasing and long production times, the host's response has a somewhat "Versailles" flavor: "Our company has over 200 people, most of the labor is in the factory, and it takes at least 20 days to 1 month to make a product, but there are other orders ahead. The demand is too high; if we release 100 orders, they are gone in a second."

This "supply-demand imbalance" is not just a marketing tactic; LinZhao Jewelry employs a limited release mechanism comparable to luxury goods. It is understood that the order grabbing time for December is every Friday at 5:20 p.m., with 6 orders available online and offline each, totaling 12 new orders per week. Even more exaggerated is that even if one secures a spot, most products sold in-store currently require a custom production period of up to 12 months.

Moreover, the brand has introduced a quota system similar to luxury goods. For example, LinZhao's Zodiac series "Chan Juan Gui Tu" ornament requires a minimum order of 200 grams; the bracelet heritage series "Dragon and Phoenix Retro" style requires a cumulative consumption of 100,000 yuan to purchase.

Even for products that do not require a quota, the prices are still steep. A 65-gram gold pendant is priced at 124,000 yuan, equivalent to 1,900 yuan per gram; the popular Twelve Flower Goddess ring weighs 8 grams and is priced at 16,000 yuan, with a per gram price exceeding 2,000 yuan.

Although the waiting period is long and the prices are high, it has not dampened consumer enthusiasm. On December 2, Chen Guo from Zhejiang specifically traveled to a physical store in Lanzhou to purchase gold jewelry. He told "Leopard Change" that he bought a 6mm Garuda bead, which requires a 12-month wait For this special forces-like trip to Lanzhou, he felt the shock of top handmade gold jewelry.

In fact, consumers are using real money to buy "Ancient Method Four Sisters." According to data from MiYun, during the Douyin Double 11 period, the sales of gold category products increased by 22.81% month-on-month. On October 15th at 8 PM, Tmall's Double 11 kicked off, and the official flagship store of LAOPU GOLD achieved a transaction amount of over 300 million yuan within 10 minutes of launching spot sales. Moreover, LinZhao Jewelry, with only one store, has also surpassed 500 million yuan in annual sales.

What is even more noteworthy is the change in consumer structure. According to the Southern Metropolis Daily, the head of the jewelry and accessories industry at Tmall stated: "Since the beginning of this year, at least half of the consumers purchasing gold have previously ordered luxury goods on Tmall. In terms of cost-effectiveness and value preservation, buying a branded bag is indeed not as appealing as buying gold."

Redefining "Luxury Goods"

The rise of ancient method gold is not accidental, but the result of long-term craftsmanship and precise positioning by the brands. LinZhao Jewelry and BaoLan, two emerging players, although differing slightly in region and product style, share a similar growth trajectory—both originating from artisan families, rooted in handmade craftsmanship, and ultimately carving out a high-end route.

Founded in 2006, LinZhao Jewelry has only one offline store, but it is backed by three generations of gold processing heritage. Founder Ma ZhaoXian mentioned in an interview that the family has been involved in gold processing since before 1977, and influenced by this, he learned to make rings at the age of 14.

BaoLan from Hangzhou also has a similar artisan gene. To further enhance craftsmanship, BaoLan underwent two large-scale production line upgrades in 2019 and 2023, not only introducing more advanced auxiliary equipment but also forming a professional team of 60 goldsmiths.

However, what truly sets these brands apart is not just the craftsmanship itself, but their precise replication of LAOPU GOLD's successful formula.

First is the scarcity marketing. Unlike traditional gold stores that sell as much as they have, ancient method gold brands create an artificial sense of scarcity. LAOPU GOLD strictly limits its stores to top malls like SKP and MixC; LinZhao's limited-time purchases take scarcity to the extreme—12 spots per week, sold out in 1 second. This psychology of "the harder it is to obtain, the more it is worth having" precisely hits the pain points of high-end consumers.

Secondly, there is the empowerment of cultural value. By emphasizing complex craftsmanship and cultural heritage, these brands successfully upgrade gold from a "commodity priced by weight" to an "artwork carrying cultural value." LAOPU GOLD's rose window and rotating Vajra have sparked buying frenzies; LinZhao emphasizes "each piece is a work of art"; BaoLan focuses on its goldsmith team as a core selling point. Essentially, they are all selling a sense of cultural identity.

Finally, there is the fixed-price pricing model. This may be the most critical innovation in the business model. The traditional jewelry pricing method of "gold price × weight + processing fee" reduces the brand to a mere appendage of gold prices; whereas the fixed-price model not only avoids the risk of gold price fluctuations but also achieves a significant leap in profit margins. In recent years, LAOPU GOLD's gross profit margin has been around 40%, while Chow Tai Fook's gross profit margin is only about 20% in 2024 This also explains why capital is betting on traditional gold, essentially recognizing this business model. After all, the success of LAOPU GOLD has provided an excellent template: in the first half of 2025, revenue reached 12.35 billion yuan, with a net profit of 2.35 billion yuan, a year-on-year increase of 291%. During the same period, LAOPU GOLD's average store efficiency was nearly 500 million yuan, surpassing many domestic and international jewelry brands.

More importantly, LAOPU GOLD's customers have an average overlap rate of 77.3% with consumers of the five major luxury brands such as LV, Hermès, and Cartier, validating that traditional gold has the opportunity to penetrate the high-end consumer market.

When Lin Chao Jewelry received a billion yuan investment from Rihua Capital, and Baolan attracted heavyweight investors like Lei Jun and Kering Group, capital was not only interested in the current profitability but also in the replicability and imaginative space of this model—under the trend of consumption upgrading and cultural confidence in China, traditional gold has the opportunity to give birth to a truly "Chinese luxury brand."

As Chen Feng, founder of Rihua Capital, said, the Chinese jewelry industry is undergoing a significant transformation. The past twenty years were driven by channels and models, while the future will be driven by culture, products, and originality.

Who can become the next "LAOPU GOLD"?

On the surface, Lin Chao and Baolan have a more pure "handcrafted gene" than LAOPU GOLD, but this extreme pursuit of craftsmanship is becoming their biggest developmental constraint.

Lin Chao only accepts 12 orders per week, with a production period of up to one year; Baolan's popular styles are often in a "pre-sale state." This production capacity limitation creates a sense of scarcity while also presenting a fundamental contradiction for the brand: the essence of capital is to pursue scalable growth, but the core selling point of traditional gold is precisely the non-scalability of "handcrafted" products.

Even more awkwardly, once these brands attempt to enhance production capacity through standardized production, it equates to abandoning the core narrative of "handcrafted art," significantly narrowing the differences with traditional gold jewelry brands. However, if they insist on a purely handcrafted route, it becomes difficult to meet capital's expectations for growth speed.

The excessive pursuit of artistry has also brought unexpected side effects. A consumer who once considered purchasing a traditional gold pendant mentioned that while the craftsmanship of these new brands is indeed exquisite, it leans more towards traditional classics. For example, Baolan's turquoise floral pendant feels too heavy for daily commuting and is more suitable as a gift for elders.

Fans of Lin Chao shared with "Baobian" that perhaps due to the softness of handcrafted items like filigree, some styles became deformed after a few days of wear, making them less suitable for everyday wear and more appropriate as decorative pieces at home. A gold industry practitioner told "Baobian" that the pursuit of artistry might also lead some products to detach from everyday scenarios, transforming from "jewelry" into "artifacts," which could limit consumption frequency and customer range.

Data comparisons further illustrate the issue. Baolan's Tmall flagship store has only over 6,000 fans, and the best-selling product sold only 11 pieces; Lin Chao, Baolan, and Junpei have a total of 1, 3, and 4 stores respectively, far from reaching the core markets of Beijing, Shanghai, Guangzhou, and Shenzhen.

In contrast, LAOPU GOLD already has 41 selected stores and has even expanded into overseas markets like Singapore. This scale difference is not only reflected in revenue but, more importantly, in the exponential difference in brand influence In the face of the scaling paradox, latecomers actually face three choices:

First, adhere to a boutique route, creating a small yet beautiful "Chinese Hermès." The advantage is the ability to maintain a very high brand tone and profit margin, while the risk is that the market ceiling is relatively low, making it difficult to support large-scale capital return expectations.

Second, pursue standardized transformation and scale expansion. This is the path that LAOPU GOLD has taken, but the cost is the dilution of some "handcrafted artwork" attributes. Successful cases prove that this path is feasible, but it requires finding a balance between craftsmanship inheritance and commercial efficiency.

Third, pursue differentiated positioning and explore niche markets. For example, focusing on high-end customization, collectible artworks, or developing a more suitable light luxury product line for everyday wear. This requires the brand to showcase stronger product innovation capabilities while maintaining its core DNA.

The ability of brands like Lin Zhao and Bao Lan to attract capital proves the market's strong expectation for "the next LAOPU." However, who ultimately prevails will be tested not only by craftsmanship inheritance but also by a profound understanding of the essence of business.

After all, in the context of consumer rationality returning and the popularity of domestic trends stabilizing, only brands that truly create value can stand firm after the tide recedes. For those latecomers attempting to replicate success, the greatest opportunity may not be to become "the next LAOPU," but to find their unique value positioning in this niche track.

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