Di Yi Cai Jing Zi Xun·2025-10-26 14:41Core Viewpoint - The recent price increases by leading gold jewelry brands, such as Laopu Gold and Chow Tai Fook, occur despite a decline in international gold prices, raising questions about the sustainability of their pricing strategies [2][3][4]. Group 1: Price Increases by Leading Brands - Laopu Gold has officially raised prices for its products, with increases around 20%, marking the third price hike this year [2]. - Chow Tai Fook announced a price increase for its gold products, with expected hikes between 12% and 18% [2]. - The price of gold jewelry is primarily determined by "raw material cost + processing fee + brand premium," and the recent price hikes are driven by the need to maintain stable profit margins amid fluctuating gold prices [3][4]. Group 2: Market Dynamics and Consumer Behavior - The decline in gold prices has led to a strategic shift among top brands to increase processing fees and maintain profit margins, as retail sales cycles typically last 1-2 months [3]. - The price increases are also part of a branding strategy to reinforce the perception of gold as a stable investment, which may create unrealistic consumer expectations regarding gold prices [4]. - Despite a 26% year-on-year decline in gold jewelry consumption, leading brands like Chow Tai Fook reported a 4.1% increase in retail value, with a 43.7% increase in the retail value of priced gold products [6]. Group 3: Consumer Sentiment and Market Trends - The divergence between falling spot gold prices and rising retail prices may affect consumer willingness to purchase physical gold jewelry [5][6]. - High-end consumers are less price-sensitive and more focused on brand prestige and product quality, which may sustain demand despite price increases [6]. - The ongoing debate about "fixed-price" gold jewelry versus traditional weight-based pricing highlights a shift in the industry towards reducing price sensitivity and enhancing brand margins [7][8].