Chinese Heritage Brands Gain Ground as Global Luxury Loses Shine

A shift is underway in China's luxury market as homegrown brands increasingly attract affluent consumers willing to pay well above market rates for design and heritage.

Software engineer Li Yue recently spent nearly 28,000 yuan (US$4,148) on a 10-gram pure gold necklace from Laopu Gold, a Chinese heritage jewellery brand that has gained significant attention in recent years. That price was more than double the prevailing market rate for the metal.

For Li, the purchase was not about bullion value. She was drawn to the gourd-shaped pendant, a traditional symbol of fortune and prosperity, and the care taken in its creation. "No one asks how much the fabric of their Louis Vuitton bag costs, right?" she said.

Her spending comes after months of declining gold prices, yet the premium she paid reflects a broader trend of consumers prioritizing craftsmanship, innovation and a high-value sense of luxury over raw materials.

A growing number of local brands are now winning over these premium consumers, positioning themselves as market shapers rather than challengers as global luxury labels lose lustre in the region.