The “Hermès of gold”, one of the “three sisters of HKEX”, Laopu Gold, has been closely watched by consumers and investors alike. After a 2.7 billion HKD (346.55 million USD) share placement and its tumble on the stock market earlier this month, all eyes are on the Chinese jeweller’s next move, especially its expansion plans. Now reports confirm that the next step of Laopu is in Singapore.
Outside Mainland China, Laopu Gold already has branches in Hong Kong and Macau. However, its first store outside China has long been anticipated and speculated. In late February, netizens spotted the Laopu logo on hoardings at a retail space in the Marina Bay Sands Hotel, hinting that the brand’s first store under its “going overseas” (出海) strategy will be located in the high-end shopping area of Singapore’s landmark hotel. The hotel is already home to 19 luxury flagship stores and hosts over 170 global fashion brands. This would make Laopu neighbours to the likes of Louis Vuitton, Chanel and the actual Hermès.
Nearly four months later, the location has finally been confirmed and is set to open on 21 June. Laopu has also expressed its intention to open a store in Tokyo, Japan and have at least 4 shops in Southeast Asia by 2026. The share placement was intended to fund Laopu Gold’s global expansion.
Laopu has been closely watched by not only competitors but also investment banks such as Goldman Sachs and Morgan Stanley. Goldman Sachs raised the Laopu Gold price target due to its strong sales, high profitability and, of course, the new Singapore opening. Morgan Stanley remains neutral as it is still monitoring the results. Like many other Chinese companies, “going overseas” seems to be the best path forward for Laopu amid stiff competition at home. The performance of Laopu in Singapore could indicate how well the brand resonates beyond “traditional Chinese craft” and “guochao”.