Cartier's parent company, the Swiss luxury group Richemont, recently released its annual report for the fiscal year ending March 31, 2026. The group reported annual sales of approximately 22.4 billion euros, representing an approximate 11% increase at constant exchange rates. Its operating profit margin stood at about 20%, positioning Richemont as one of the most steadily growing major luxury conglomerates globally.
During the investor call following Richemont's annual results, an analyst, as anticipated, subtly inquired whether Chinese consumers are shifting from international luxury brands to domestic ones and how Richemont views this trend.
Richemont Group CEO Nicolas Bos immediately detected the underlying tension in the question. He responded with a defensive stance typical of the European luxury sector over the past couple of years.
Although the analyst did not name specific brands in the question, Nicolas Bos explicitly mentioned "LAOPU GOLD" in his reply. His exact words were: "The success of LAOPU GOLD and some other brands has made us realize that there is indeed a very strong interest in the Chinese market for novelty, new brands, and new product concepts."
When asked whether Richemont would consider acquiring a Chinese brand, Nicolas Bos's response was a clear "no."
It is noteworthy that this marks the first time a CEO of a top-tier European luxury group has directly named LAOPU GOLD in an official earnings call. Historically, established European luxury houses have either avoided mentioning Chinese brands or referred vaguely to "local competition." This time, Nicolas Bos explicitly cited "the success of LAOPU GOLD."
What are Chinese domestic luxury brands competing for? In response to a Citi analyst's question regarding Chinese consumers and local Chinese jewelry brands, Richemont CEO Nicolas Bos expressed the view that the Chinese are adept at operating Chinese brands, while they (Richemont) are more skilled at managing Swiss or French brands. He mentioned that the success of LAOPU GOLD and other Chinese brands has also taught Richemont a great deal.
Richemont's growth is almost entirely driven by high-end jewelry. Out of its 22.4 billion euros in sales, 16.5 billion euros came from its Jewellery Maisons division. Overall, this performance significantly "outpaced the industry," with growth fueled by the jewelry business, particularly the high-end jewelry brands Cartier and Van Cleef & Arpels.
Based on an analysis of Richemont's financial data, it is estimated that the combined sales of Richemont's four jewelry brands in the Asia-Pacific region (excluding Japan but including China) total approximately 44.3 billion yuan. In comparison, LAOPU GOLD, as a single brand, achieved a sales volume of 31.375 billion yuan in 2025, with 23.36 billion yuan generated in the Chinese mainland market.
According to third-party market research data from Frost & Sullivan cited in LAOPU GOLD's 2025 annual report, LAOPU GOLD's revenue in the Chinese mainland luxury market in 2025 surpassed that of Hermès, ranking second, just behind the LVMH group. It is also the only Chinese brand among the top five global luxury groups by revenue in the Chinese mainland.
Chinese domestic luxury brands are not merely competing for a specific product category; they are challenging the traditional monopoly held by established luxury brands in the high-end jewelry sector.
Luca Solca, Managing Director of the Luxury Goods sector at Swiss consultancy Bernstein and a highly respected commentator in the European luxury industry, analyzed for Vogue magazine that Richemont's performance in China remains robust—even while facing direct competition from local Chinese brands. He stated, "Despite facing increasingly fierce competition from Chinese local brands—such as LAOPU GOLD—Richemont has delivered a strong performance in the Chinese market."
"With or without LAOPU GOLD, Richemont's jewelry brands appear to be reigniting growth momentum in the Asian market, which alleviates previous market concerns that local brands would gain the upper hand," Solca analyzed. This industry-recognized analyst has long maintained that truly strong luxury brands possess a "cultural moat."
The reason Luca Solca mentioned LAOPU GOLD in his analysis of Richemont's annual report is that, from the perspective of the luxury industry, LAOPU GOLD is entirely different from traditional Chinese gold stores; it represents the "luxurification of Chinese culture." This has led many overseas funds to worry that Chinese consumers may no longer be as enamored with Cartier and Van Cleef & Arpels.
For instance, in an analytical report released on April 26 this year, J.P. Morgan analyzed that LAOPU GOLD is the most likely to benefit from experience-driven growth and is their top pick in the Chinese consumer sector.
Has Richemont actually lost ground? Although Richemont's CEO skillfully shifted the narrative in his response, the changes in sales data from the Chinese market revealed in Richemont's 2025 fiscal year report indicate a shift in Chinese luxury consumption.
Year-over-year at constant exchange rates, Richemont's sales in the United States grew by 17%; the Middle East and Africa by 13%; Europe by 9%; and the Asia-Pacific region (excluding Japan) by 8%, primarily driven by South Korea, Australia, and Singapore.
In contrast, only the Chinese market showed "stabilization," with a growth of 3%.
If this were attributed to overall market weakness, it is noteworthy that during the same period, sales of Chinese domestic luxury brands were surging dramatically.
In 2025, the Chinese domestic luxury brand LAOPU GOLD achieved sales performance of 31.375 billion yuan, a year-on-year increase of 220.3%. Its annual profit was 4.868 billion yuan, with a staggering year-on-year growth of 230.5%. Furthermore, according to J.P. Morgan's estimates at the end of April, they believe LAOPU GOLD could achieve a compound annual growth rate of 36%/41% in sales/net profit from 2025 to 2028.
Based on publicly available data, a rough estimate can be made. According to Richemont's annual report, the Asia-Pacific region (excluding Japan) contributed 34% to the regional sales of its four jewelry brands. This is the highest proportion among all regions, surpassing the 25% from the Americas and 21% from Europe.
Calculating based on the global sales of 16.5 billion euros for the four jewelry brands, the total sales of Richemont's four jewelry brands in the Asia-Pacific region (excluding Japan) amount to approximately 44.3 billion yuan (5.61 billion euros).
LAOPU GOLD, as a single brand, achieved a sales volume of 31.375 billion yuan in 2025, with 23.36 billion yuan generated in the Chinese mainland market.
Through the above data analysis, it is evident that the revenue scale of Richemont's jewelry division in the Asia-Pacific market has entered the same order of magnitude as the single-market scale of a Chinese domestic high-end jewelry brand, making it comparable for reference. However, as international luxury groups generally do not disclose revenue figures specifically for the Chinese mainland—this applies to Richemont, LVMH, and Hermès alike—more specific comparative conclusions cannot be drawn.
Similarly, according to Frost & Sullivan research data cited in LAOPU GOLD's 2025 annual report, the average overlap rate between LAOPU GOLD consumers and consumers of five major international luxury brands (Louis Vuitton, Hermès, Cartier, Bulgari) increased from 77.3% in July 2025 to 82.4% in March 2026.
It is undeniable that with the rise of Chinese cultural aesthetics, the localization of gold consumption, and the premiumization of domestic trends, Chinese brands have begun to compete for the high-end jewelry market in China.
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