价值研究所｜老凤祥的“黄金局”

Core Viewpoint - The overall gold and jewelry industry is under pressure, prompting Lao Feng Xiang to embark on a high-end transformation journey to penetrate the luxury market [2][3]. Industry Overview - Rising gold prices have suppressed consumer demand, and the franchise model faces growth bottlenecks, making the situation challenging for domestic gold and jewelry companies this year [3]. - While traditional gold brands are experiencing declines in revenue and net profit, Lao Pu Gold has seen a remarkable performance, with revenue and net profit both increasing over 200% year-on-year in the first half of the year [3]. Lao Feng Xiang's High-End Transformation - Lao Feng Xiang's high-end transformation could either be a turning point for its performance or a risky gamble [4]. - The company has adopted a dual-track approach by entering the luxury goods sector through "equity investment + brand agency" [6]. - In September, Lao Feng Xiang announced an investment of 50 million yuan to establish Shanghai Lao Feng Xiang Zhenpin Trading Co., focusing on high-end products [7]. Strategic Partnerships - In October, Lao Feng Xiang furthered its strategy by investing $24 million to acquire a 20% stake in Maybach Luxury Goods Asia Pacific Company (MAP), which covers various luxury lifestyle products [9]. - Lao Feng Xiang has also secured distribution rights for MAP products in the Asia-Pacific region, committing to a minimum purchase of $13 million over three years [11]. Financial Performance - Lao Feng Xiang has faced declining revenues and profits, with a 20.5% drop in revenue to 56.793 billion yuan and an 11.95% decrease in net profit to 1.95 billion yuan in 2024 [13]. - The company's retail business has a gross margin of 23.61%, while the wholesale business, which accounts for over 70% of revenue, has a much lower gross margin of 9.39% [15]. Challenges in High-End Positioning - Lao Feng Xiang's franchise system may conflict with high-end brand operations, as the majority of its stores (96%) are franchises, limiting control over brand image and customer experience [18]. - The company needs to clarify its specific path and synergies for high-end transformation to investors [11]. Market Trends - The gold and jewelry industry is shifting towards two main directions: high-end customization targeting high-net-worth individuals and fast fashion aimed at younger consumers [20]. - Capital markets currently favor Lao Pu Gold's business model, which emphasizes cultural consumption over pure investment attributes [20]. Conclusion - The high-end transformation journey for Lao Feng Xiang is a significant test of its strategic determination and operational capabilities, serving as an important case study for the transformation of traditional Chinese brands [22].