Core Viewpoint - The article discusses the rising trend of gold prices in China and the consumer behavior surrounding "Lao Pu" gold, highlighting the emotional and psychological factors driving demand despite fluctuations in gold prices [3][12][34]. Group 1: Consumer Behavior and Market Dynamics - The phenomenon of "Lao Pu" gold has become a cultural trend, with consumers, particularly women, eagerly queuing for purchases during price adjustments, indicating a strong belief in the brand and its value [4][19]. - The pricing strategy of "Lao Pu" gold involves infrequent price adjustments, which creates a perception of value and urgency among consumers, leading to increased sales even when gold prices fluctuate [12][13][14]. - A significant portion of consumers (approximately 80%) express confidence in the value retention of "Lao Pu" gold, viewing it as a form of emotional investment rather than a mere commodity [16][24]. Group 2: Market Trends and Future Outlook - The gold jewelry market, particularly for "Lao Pu" gold, is projected to grow significantly, with a compound annual growth rate of 21.8% from 2023 to 2028, indicating strong future demand [30]. - The article suggests that even if gold prices decline, "Lao Pu" gold may maintain its pricing strategy similar to luxury goods, relying on brand perception and consumer loyalty to sustain value [31][33]. - The shift towards lighter, more affordable gold products reflects changing consumer preferences, with a growing segment of the market focusing on items priced between 10,000 to 50,000 yuan [24][22].

Core Viewpoint - The old shop gold market is experiencing a downturn, with sales declining and second-hand products struggling to move, despite previous high growth and stock price surges [1][3][4]. Market Performance - Old shop gold's stock price has increased over 320% in 2024, reaching a peak of 1100 HKD per share shortly after its IPO [4][5]. - The company reported impressive financial results for 2024, with sales of 9.795 billion CNY, a 166% year-on-year increase, and a net profit of 1.473 billion CNY, up 254% [5][6]. Business Strategy - The company aims to position itself as a luxury brand, with plans to increase average store efficiency to over 1 billion CNY, closing underperforming stores [5][8]. - Old shop gold has implemented multiple price increases, ranging from 7% to 15%, to maintain its high-end market positioning [6][8]. Competitive Landscape - Old shop gold's gross margin is significantly higher than competitors, with a margin of 41.2% compared to 29.5% for Chow Tai Fook and much lower margins for other brands [7]. - The brand's marketing strategy includes high-end services and exclusive experiences, aiming to create a luxury image akin to that of Hermes [7][9]. Second-Hand Market Challenges - In the second-hand market, old shop gold products are typically valued at only 40-70% of their original price, which is significantly lower than the 60-90% range for luxury brands [9][10]. - The brand faces challenges from counterfeit products and a saturated market, which diminishes its perceived value [11][12]. Emerging Competitors - New competitors like Lin Chao, Junpei, and Baolan are emerging in the high-end market, offering unique craftsmanship and designs that appeal to affluent consumers [13][14][21]. - These competitors are gaining traction, with Lin Chao achieving a significant social media following compared to old shop gold [15][23]. International Expansion - Old shop gold has opened its first overseas store in Singapore, indicating its intent to expand internationally, although initial customer turnout has been primarily from the Chinese community [23][24].