Two Chinese brands are changing the conversation about luxury in China. Laopu Gold, a Beijing heritage gold jeweller, grew its revenue by 221% to reach 27.3 billion RMB in 2025, placing it second in mainland China luxury revenue, ahead of Hermès. Songmont, a handbag brand priced between 1,000 and 3,000 RMB, posted 90% online handbag sales growth in the first three quarters of 2025, while Gucci’s online handbag sales in China fell more than 50% over the same period.
These are not niche success stories. They are a signal about where the Chinese luxury market is going.
According to Bloomberg’s analysis, Chinese consumers have dubbed Laopu Gold “the Hermès of gold,” and Songmont is taking on Louis Vuitton for China’s middle-class shoppers. The market is changing. International fashion brands need to understand what is driving this shift and what to do about it.
Why Chinese Luxury Brands Are Winning Right Now
Laopu Gold and Songmont do not win by accident. They win because they are built for the 2026 Chinese consumer in ways that many international brands are not.
They are culturally specific. Laopu Gold sells heritage Chinese gold craftsmanship. Its products reference traditional aesthetics in a way that resonates deeply with Chinese consumers who are proud of their cultural identity. The brand does not try to be European. It is proudly, specifically Chinese, and that positioning is a strength.
They are priced for the real market. Songmont sits at the entry-luxury level: expensive enough to feel premium, accessible enough to attract the vast Chinese middle class. This is the sweet spot that many international mid-tier brands have abandoned in favour of pushing upmarket or downmarket.
They are native to Chinese platforms. Both brands built their presence on Xiaohongshu and Douyin before they opened flagship stores. Their marketing is created for the Chinese digital consumer, not adapted from global campaigns.
According to our analysis of why heritage brands win in China, trust is built through consistent, authentic storytelling over time. Laopu Gold has done this with deep roots in Chinese goldsmithing history. Songmont has done it through community-building on Xiaohongshu, where real women share how they carry the bags in their daily lives.
The Guochao Factor: National Pride Meets Product Quality
The success of Songmont and Laopu Gold is part of a broader movement called “Guochao,” which translates as “national wave.” This is not simple patriotism. Guochao 3.0, the current phase, is about quality, innovation, and cultural relevance. Chinese consumers in 2026 are choosing domestic brands because those brands are genuinely better suited to their lives, not just because they are Chinese.
Research shows that 75% of young Chinese consumers prefer local products over imported fast fashion. Domestic brands now hold 76% of China’s fast-moving consumer goods market. These are structural shifts, not temporary trends.
For international fashion brands, this is a serious challenge. The automatic premium that came with a European or American brand origin is shrinking. Chinese consumers want to know: what does your brand actually offer me, beyond the country of origin? What is the story? What is the quality? Why should I choose you over Songmont or Laopu Gold?
International brands that cannot answer these questions clearly will continue to lose market share to domestic competitors.
What International Brands Can Still Do
The rise of Chinese domestic luxury brands does not mean international brands are finished in China. It means the game has changed.
The brands still winning in China share one thing: they have a clear, specific reason to exist for the Chinese consumer. Heritage and craftsmanship that cannot be replicated domestically. Design language that is globally recognized and locally resonant. A cultural story that connects to Chinese values in an honest way.
International brands that try to compete with Songmont on price will lose. International brands that try to out-Chinese Laopu Gold on cultural heritage will also lose. The winning strategy is to be genuinely, distinctly international while connecting those international strengths to the Chinese consumer’s world.
This is where digital strategy becomes critical. China’s luxury market in 2025-2026 rewards brands that communicate clearly and specifically to their target consumer. The platform to do that is Xiaohongshu. The platform to scale that awareness is Douyin.
Xiaohongshu: How to Build a Differentiated Position Against Local Competition
Xiaohongshu is where the battle for the Chinese luxury consumer’s mind is being fought in 2026. Both Songmont and Laopu Gold have strong Xiaohongshu presences built on authentic community content. International brands competing with them need to match that authenticity, but with a differentiated story.
For an international fashion brand competing against rising domestic players, the Xiaohongshu strategy should focus on:
- Heritage content that cannot be duplicated: The history of a French maison, an Italian leather atelier, or a Japanese design house carries weight on Xiaohongshu when presented honestly. Chinese consumers on the platform are sophisticated. They can tell the difference between genuine heritage content and marketing copy dressed as a story. Invest in real content: archive pieces, artisan interviews, factory visits, historical context.
- Quality differentiators shown, not told: Create Xiaohongshu content that demonstrates the superiority of your materials and construction in visible, specific terms. A post comparing stitching, leather weight, or fabric composition to less expensive alternatives gives consumers the evidence they need to justify a higher price point against domestic competition.
- Community built around shared values: Songmont’s success on Xiaohongshu is partly built on a community of women who see the brand as a statement about self-expression and working life. International brands can build similar communities around their brand’s specific values: elegance, sustainability, craftsmanship, or whatever is genuinely central to the brand identity.
- Influencer relationships that go deep, not wide: Rather than working with many different creators for individual campaigns, build long-term relationships with 5 to 10 Xiaohongshu creators who genuinely fit the brand. Their audience trusts them. When they consistently feature your brand over months, that trust transfers.
Fashion China Agency builds Xiaohongshu strategies for international fashion and luxury brands competing in China’s increasingly competitive premium market.
Douyin: Scale and Speed Against Domestic Competition
Songmont has built a strong Douyin presence through a steady stream of lifestyle content and product videos that feel native to the platform. International brands need to match that output and exceed it in production quality and storytelling depth.
On Douyin, international brands have one natural advantage over domestic competitors: they can tell stories that Chinese domestic brands cannot. International travel, global fashion weeks, collaborations with international artists and designers, production at European or Japanese ateliers. This content is genuinely interesting to Chinese consumers on Douyin, especially the younger segments who consume global cultural content.
The Douyin strategy for an international brand competing with Laopu Gold or Songmont should include:
- International lifestyle content: Short videos showing the brand’s world outside of China. Paris, Milan, Tokyo. Real locations, real events, real people wearing the brand. This is content domestic Chinese brands cannot replicate.
- Product story videos: 60-90 second videos showing the making of a product, from raw material to finished piece. Chinese consumers on Douyin respond strongly to craftsmanship content when it is presented cinematically.
- Creator partnerships across demographics: Work with Douyin creators at multiple levels: large accounts for reach, mid-tier accounts for engagement, niche accounts for credibility. The mix matters more than the total follower count.
- Douyin live commerce: Use Douyin live not just to sell, but to educate. A weekly or bi-weekly live session that explains the brand, shows products in detail, and answers consumer questions builds the kind of trust that converts viewers into buyers and buyers into brand advocates.
Our Douyin team works with international fashion brands to build content strategies and creator partnerships that compete effectively against domestic Chinese players.
The Lesson from Songmont and Laopu Gold
These two brands prove that the Chinese luxury market is not a closed game. It is a competitive one. The brands that win build real product quality, tell honest stories on Chinese platforms, and connect deeply with their target consumer.
For international brands, the response to domestic competition is not to panic or to copy. It is to be more clearly, specifically, and authentically yourself, on the platforms where Chinese consumers actually spend their time.
| Chinese brand | Category | 2025 performance | Key strength |
|---|---|---|---|
| Laopu Gold | Fine jewelry | +221% revenue, 27.3B RMB | Chinese heritage craftsmanship |
| Songmont | Premium handbags | +90% online sales | Accessible luxury, community on Xiaohongshu |
| Labubu (Pop Mart) | Collectibles/lifestyle | Global cultural phenomenon | Gen Z cultural resonance, IP storytelling |
Claire Verot is China marketing strategist at Fashion China Agency, specialized in luxury brand development on Chinese social media platforms. Connect on LinkedIn.
Sources: Bloomberg, China’s Luxury Brands Songmont and Laopu Gold Steal Spotlight | Options The Edge, Chinese Luxury Brands Having a Moment