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Chinese gold jewelry brands are beginning to expand globally, particularly targeting Southeast Asia, as domestic demand wanes amid record-high gold prices.
One notable move is that Laopu Gold launched a store at The Shoppes at Marina Bay Sands in Singapore this past June, serving as a launchpad for further expansion across other Asian cities. Laopu Gold specializes in traditional gold craftsmanship, positioning itself as a high-end Chinese brand.
Spot gold prices recently topped $4,000 per ounce, reflecting a 52% increase so far this year and reaching an all-time high. Despite this surge, China’s gold consumption dropped 3.5% in the first half of the year to just over 505 tons, with gold jewelry purchases plummeting by 26% to approximately 200 tons, according to the China Gold Association.
Meanwhile, Laopu Gold reported a 455% increase in overseas revenue during the first half of the year compared to the previous year, making up around 13% of its total earnings.
The founder of Jingjie Brand Consulting explained that Singapore’s rich Chinese cultural heritage and widespread acceptance of traditional Chinese gold create an ideal environment for Laopu Gold to replicate its domestic success abroad. She added that Singapore’s reputation as a hub for international luxury shopping offers Chinese luxury brands an opportunity to boost their global exposure and compete more effectively in the high-end market.
Other brands are similarly making international moves. Guangdong CHJ Industry, known for jewelry and fashion consumer goods, opened its first overseas stores in Kuala Lumpur, Malaysia, and Bangkok, Thailand, last August. Its products, which incorporate traditional silk craftsmanship fused with modern design, quickly gained popularity.
Chow Tai Fook Jewelry began its overseas expansion earlier than many competitors, establishing locations throughout Southeast Asia, North America, and Japan. Additionally, some brands are leveraging e-commerce channels to reach international customers — Chow Tai Seng Jewelry, for example, has set up a TikTok team to promote its offerings in various markets.
Chinese gold companies prefer Southeast Asia for their global expansion due to its large and youthful population that values Chinese gold products, along with a strong purchasing appetite and high demand for wedding-related jewelry. These factors offer significant growth opportunities for the gold and jewelry sector.
However, industry insiders note challenges ahead. A marketing director at a listed Chinese gold firm said that adapting product designs to local tastes is crucial, as many Chinese products reflect cultural elements that may not resonate with overseas consumers. Furthermore, preferences regarding gold purity, style, and cultural significance vary across countries, requiring brands to tailor their offerings to diverse markets.
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