Reference News Network August 1 report: The U.S. "Wall Street Journal" website published an article titled "Rise of Domestic Luxury Brands, Chinese Consumers No Longer Enamored with Western Big Brands" on July 29, the content of the article is as follows:

Chinese affluent class once pursued Western luxury bags and jewelry, regarding them as a symbol of status. Now, they are turning to domestic brands, which pose a challenge to international big brands such as Cartier and YSL.

Brands such as Laopu Gold, Maogeping, and Yamashita Yuzen are winning more and more favor from Chinese consumers by combining local design inspiration and cultural pride.

Last year, when Zhou Linafang, an auditor in Beijing, was hospitalized for childbirth, she saw a long line outside a store selling Laopu Gold jewelry.

Like many of her peers, 35-year-old Zhou Linafang used to think gold jewelry was not fashionable; but after seeing Laopu Gold's filigree ring, gourd-shaped pendant, and phoenix hairpin, she changed her mind. Soon after her child was born, her husband queued for an hour at a Laopu Gold store in Beijing and bought a pendant worth $1,600 for her.

"Now we have high-end luxurious gold jewelry, and it's really fashionable," said Zhou Linafang. "As a fashionista, how can I not buy one?"

Western luxury brand executives have also noticed this situation. Earlier this year, someone asked John Ruspoli, chairman of Richemont, whether Laopu Gold would pose a challenge to Cartier. Ruspoli said that the brand has many advantages by being associated with patriotism and other sentiments.

According to Bain & Company data, the sales of the luxury market in mainland China dropped by about 20% last year, most of which were Western brands. In the fiscal year ending March 2025, Richemont's sales in China dropped by about 23%.

After Laopu Gold listed in Hong Kong last year, its stock price surged, and the company's market value exceeded $15 billion. In contrast, Kering Group, the parent company of Gucci, saw its stock price fall by more than 20% compared to a year ago.

In June this year, after NBA star Victor Wembanyama ended his China tour, he was seen wearing Laopu Gold's iconic gourd-shaped pendant at a sports exhibition in New York.

Laopu Gold's executives explained to shareholders in April that the company has opened up a niche market with less direct competition. Chinese gold jewelry manufacturers target the mass market, while European high-end jewelers do not specialize in gold.

32-year-old Sophia Zhang (音) used to be a loyal customer of L'Oréal and Estée Lauder, but now she has become a fan of Maogeping, the eponymous brand of the Chinese makeup artist. Maogeping's face cream and foundation usually cost half or even less than those of international big brands.

Sophia Zhang said, "In the past, I thought it was necessary to spend a lot of money on skincare products, and believed that big brands were the best, looking down on cheap domestic products." But she pointed out that now that she has found suitable and more affordable alternatives, "it's hard to go back."

Some light luxury brands in China are also expanding their markets, with pricing comparable to brands like Coach. For example, the handbag brand Yamashita Yuzen is known for its simple and modern designs, including a shoulder bag priced at about $529.

Claudia Delpicchio, a consultant at Bain & Company, said that Laobu's success has already proven that Generation Z consumers are open to Chinese design.

Original: https://www.toutiao.com/article/7533454399973163546/

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