Latest news with #MBS
Time of India
3 days ago
- Business
- Time of India
What do Gulf royals really own? A $450M Da Vinci, gold jets, super yachts, islands and more
A glimpse into the opulent world of Gulf royals, where gold jets and priceless art are just the beginning / Image Composite : Wikipedia TL;DR Gulf royals own record-breaking treasures like Leonardo da Vinci's Salvator Mundi and $500 million yachts. Their collections span priceless art, private islands, million-dollar falcons, and gold-plated jets. These possessions aren't just about showing off wealth, they carry deep meaning tied to status, heritage, and power. When you think about wealth in the Gulf Cooperation Council (GCC), which includes Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, and Oman, it's on a scale that's hard to imagine. The region's oil wealth laid the groundwork decades ago. But since then, royal families have grown their fortunes far beyond oil, through global investments, real estate, art, and unique collectibles. But it's not just about having expensive things. Many of these possessions symbolize something bigger, tradition, influence, pride, and power. Whether it's a half-billion-dollar painting or a private jet with gold fixtures, these items blend culture with personal luxury in ways few can match. Here's a look at some of the most impressive, surprising, and symbolic possessions owned by GCC royals. 1. The $450 Million Painting That Stays Hidden In 2017, Salvator Mundi by Leonardo da Vinci sold for $450.3 million, setting a world record for a painting. While the buyer wasn't officially confirmed, multiple sources including The New York Times and The Guardian point to Saudi Crown Prince Mohammed bin Salman (MBS). What makes this story even more fascinating? The painting hasn't been shown publicly since. It's rumored to be kept on MBS's giant superyacht Serene, somewhere out at sea. 2. The $500 Million Superyacht With a Submarine Speaking of Serene, this 439-foot yacht is more than a luxury vessel. It features two helipads (one converts into a pool), an indoor seawater swimming pool, a snow room (yes, real snow!), and even a mini-submarine. Originally built by Italy's Fincantieri and once owned by a Russian billionaire, the yacht was bought by Saudi Crown Prince Mohammed bin Salman (MBS) in 2015. It perfectly combines comfort, security, and style. 3. Private Jets Fit for a King Sheikh Mohammed bin Rashid Al Maktoum, Dubai's ruler, is well-known for his love of aviation. His private jets are legendary, fitted with gold-plated sinks, marble floors, and lounges that feel more like five-star hotel suites than aircraft. The Qatari royal family also has a dedicated fleet, Qatar Amiri Flight, with custom Boeing 747s and Airbus A340s tailored to their taste and comfort. 4. Watches Worth More Than Most Homes In 2019, a unique Patek Philippe Grandmaster Chime sold for over $31 million. While the buyer stayed anonymous, insiders say it likely belongs to a royal from Qatar or the UAE. These families also collect rare models from Audemars Piguet, Richard Mille, and custom Rolexes that most of us will never see in stores. 5. Cars Like You've Never Seen Before Sheikh Hamad bin Hamdan Al Nahyan from Abu Dhabi, nicknamed the 'Rainbow Sheikh,' owns a collection of more than 700 cars. Many are on display at his private Emirates National Auto Museum. One of his most famous vehicles is a massive, drivable Dodge Power Wagon, 64 times bigger than the original. Meanwhile, Saudi royals are known to cruise in gold-wrapped Lamborghinis, Bugattis, and Ferraris, especially during summer trips to London, Paris, and Monaco. 6. Private Islands Scattered Around the Globe Owning palaces is expected. But some GCC royals go a step further and own entire islands. Qatar's Al Thani family reportedly holds islands in the Maldives, Seychelles, and Greece, including the well-known Oxia island. Dubai's royal family has exclusive villas on Palm Jumeirah and hidden homes on the World Islands, some so secret they don't even appear on public maps. 7. Falcons That Fly First Class Falconry isn't just a sport in the Gulf, it's a powerful cultural tradition and status symbol. Falcons owned by royals can be worth over $1 million each. These birds travel with their own passports and health certificates, often flying business class. Viral photos show falcons comfortably settled on Qatar Airways or Etihad flights, treated like true VIPs. 8. Racing Stables That Compete Worldwide Dubai's Godolphin stable, owned by Sheikh Mohammed, is one of the most successful horse racing teams in the world. It boasts hundreds of thoroughbreds and competes in top international events like the Dubai World Cup and Royal Ascot. For Gulf royals, horse racing connects modern sport with centuries-old desert traditions. 9. Jewelry and Thrones Hidden From the Public Eye GCC royals are major clients of top jewelers from Paris, London, and Geneva. Many jewelry pieces are custom-made and never publicly shown. Reports mention thrones decorated with gold, ivory, and rare gems, crafted for private palace rooms. One Qatari princess is said to own a golden throne inspired by the Queen of Sheba, created by a renowned French design house. 10. Why These Possessions Matter Beyond Wealth This isn't just about showing off. These assets have deep meanings, about identity, history, and leadership. A prized falcon, a grand painting, or a private island can symbolize centuries of culture and power. Many royal families use their wealth to support museums and cultural projects like the Louvre Abu Dhabi and Qatar Museums, building a legacy that goes beyond money. FAQs 1. Who owns the world's most expensive painting, Salvator Mundi? Though the buyer hasn't been officially named, most reports link it to Saudi Crown Prince Mohammed bin Salman. It's thought to be kept on his superyacht Serene. 2. Do Gulf royals really have gold-plated private jets? Yes. UAE's Sheikh Mohammed bin Rashid Al Maktoum and Qatar's royal family have private jets featuring gold sinks, marble bathrooms, and lavish lounges. 3. Why do Gulf royals invest so much in falcons and exotic cars? Falconry and luxury cars represent heritage, prestige, and personal passion. They blend cultural tradition with status symbols.
Time Out
5 days ago
- Business
- Time Out
Marina Bay Sands expands with a new 55-storey hotel tower featuring a rooftop garden, casino, and more
Talks of expanding Marina Bay Sands (MBS), owned by Las Vegas Sands, began as far back as 2019. This week, the highly anticipated $10.3 billion expansion project has officially broken ground. The centrepiece of the expansion is a new 55-storey hotel tower designed by Safdie Architects – the same design firm behind MBS. The upcoming tower will house 570 suites, alongside an array of new upscale retail outlets, a casino, fine-dining restaurants, wellness facilities and more. Another part of the development includes a new 15,000-seat podium that is built to host large-scale live events. Echoing the iconic SkyPark Observation Deck, this fourth tower will also feature Skyloop – a multi-level rooftop space with both public and private areas. Visitors can enjoy sweeping panoramic views of the city skyline at the observatory, swing by the rooftop gardens and dine at the various restaurants set to open here. Hotel guests will get exclusive access to private cabanas, infinity pools and a wellness terrace that will host curated events. Construction is expected to be completed by June 2030, with the official opening set for January 2031.
Business Times
5 days ago
- Entertainment
- Business Times
How architect Moshe Safdie's new Marina Bay masterpiece will redefine Singapore's skyline
[SINGAPORE] Fifteen years ago, when the glitzy Marina Bay Sands (MBS) with its avant-garde architecture opened for business, its architect, Moshe Safdie, wondered if the integrated resort would become an icon in Singapore. Well, we know the answer to that one. Since then, the development's three sloping hotel towers – topped off with a surfboard-like SkyPark carrying its now-famous infinity pool – have been frequently featured in popular culture, from movies and TV shows to music videos, documentaries and even video games. 'I'm amused by the fact that if I want to explain what Marina Bay Sands is to somebody, I just ask, 'Did you see the movie Crazy Rich Asians?' and that takes care of it,' Safdie tells The Business Times in an exclusive interview. MBS is today not only an instantly recognisable symbol of Singapore, but also a glittering architectural marvel the world over. 'We had no clue whether it would be iconic,' says Safdie. 'It's a kind of magic you don't control.' A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up Perhaps, but it certainly helps when the architect is one as visionary as he is. At just 26, he established his own firm to realise the innovative Habitat 67 for the 1967 World Exposition in Montreal, Canada. The project was an adaptation of his thesis at McGill University for a revolutionary, three-dimensional modular urban housing system. MBS with the new, yet-unnamed US$8 billion development on its right. ILLUSTRATION: SAFDIE ARCHITECTS In town for the official groundbreaking ceremony for IR2 – as the new, yet-unnamed US$8 billion development next to MBS is currently called – Safdie has said MBS changed lives at his eponymous firm in terms of the work they received. Among other projects, he went on to design another Singapore landmark, Jewel Changi Airport – with the world's tallest indoor waterfall within, surrounded by a lush, multi-level garden – adding one more Instagram favourite that's synonymous with the city. One could say Singapore struck gold with Safdie, who has helmed such large-scale projects that cemented the city's image as modern, innovative, vibrant and yes – green. After all, who else could have dreamt up these things? Given the successes Safdie has had, expectations are naturally high that with him fronting IR2's architecture, Singapore can add yet another stunning landmark to its skyline. Get ready for this new waterfront composition with the addition of an ultra-luxury development to the right of MBS' three towers. ILLUSTRATION: SAFDIE ARCHITECTS He's excited too. 'People will get used to the new composition, and it'll become part of the so-called iconic view from across the water,' Safdie predicts. Of rooftops and stealing the thunder While MBS' design took just four months of conceptualisation ('we were under enormous pressure'), IR2 is running at eight years just to get to a schematic. This is due in part to the pandemic, but also because of technical constraints from the tight site (3 hectares versus MBS' 15.5 hectares), the logistical puzzle of how to move people in and out of the area, as well as the connecting networks under and overground that the Urban Redevelopment Authority (URA) wants. 'One thing you can say about designing in Singapore,' Safdie says wryly, 'the whole system insists that you think about the next step – growth and expansion – which is somewhat different from our experience in some other places.' The architectural challenge? MBS as a building that's already a beloved icon and the danger of compromising it with a new structure. 'So (IR2) has to be substantial in its own right and have an identity that complements and, in a sense, improves on the existing icon.' There's 'a gallery' of IR2 models in Safdie's office, and the team lived with the original plan of the new, 55-storey, 570-suite luxury hotel tower abutting MBS' Tower 1 'pretty comfortably for a couple of years'. The final schematic flipped the location of the arena with that of the new tower, so the latter is no longer right next to MBS' three towers. ILLUSTRATION: MARINA BAY SANDS Then, just as they were coming close to the decision to build, the team felt uneasy about the juxtaposition of the two developments being so close. They proposed flipping the location of the tower with that of the low-rise 15,000-seat arena to its current position, solving the problems of access that they thought were insurmountable. This, Safdie says, was 'very well-received by the URA, who also had concerns'. Now, the arena acts as a spacer between the three towers and the new one. Voila, all the stakeholders are happy. Funnily, once the new development was announced, the first question people asked him was whether IR2's roof will be connected to the SkyPark. 'I said 'no', we didn't think that would be appropriate. The roof of the new tower should be an experience in itself.' Because it isn't as long as the linear SkyPark, Safdie conceived a completely new design to 'make it almost as long'. The 76,000-square-foot (sq ft) Skyloop will be a multi-level rooftop experience made of two boomerang-shaped structures placed atop each other, one facing the city, and the other, the Singapore Straits, with another layer in between. Skyloop will be a multi-level rooftop experience made of two boomerang-shaped structures placed atop each other, but facing opposite directions. ILLUSTRATION: SAFDIE ARCHITECTS The Skyloop, almost three stories higher than the SkyPark, will be 'quite a sensational experience' and 'kind of science fiction', says Safdie. 'What you get are very dramatic views from the SkyPark to the Skyloop and vice versa.' The lower layer of the Skyloop will offer public access, including restaurants, an observatory and over 300 feet of a Skywalk. ILLUSTRATION: SAFDIE ARCHITECTS The lower layer of the Skyloop will offer public access, including restaurants, an observatory, over 300 feet of a Skywalk and a small section with 'the traditional glass floors to get a little vertigo', he jests. On the upper layer, there will be a cantilevered wellness terrace, private cabanas and infinity pools for hotel guests. The upper layer of the Skyloop will feature a cantilevered wellness terrace, private cabanas and infinity pools for hotel guests. ILLUSTRATION: SAFDIE ARCHITECTS 'In terms of building composition, you get the linear first phase of (MBS') towers three, two, one, and then you get an exclamation mark… boom!' When IR2, which includes 200,000 sq ft of meeting space, is completed in 2030, the SkyPark would be two decades old. But it won't just sit idly by while Skyloop steals its thunder. An overhaul is in the works, reveals Safdie, with plans to restructure elements such as the lounging areas, bars and plantings, while adding a new restaurant and rebuilding to 'accommodate a more ambitious programme'. Of garden cities and liveable buildings It was Safdie's birthday on the day of BT's interview. At 87, the great-grandfather may move less quickly than before, but his mind is clearly still as sharp. A citizen of Israel, Canada and the United States, Safdie is known for his humanistic approach to architecture and urban planning. His oeuvre includes projects ranging from cultural, educational and civic institutions to neighborhoods, public parks, housing, mixed-use urban centres and airports around the world. Having first visited Singapore in 1975, and coming and going since, Safdie feels he's been a part of the nation's 60-year history. Safdie turned 87 on July 14. PHOTO: YEN MENG JIIN, BT 'I think it's one of the most impressive stories of a city developing and growing; an urbanistic story,' he says. 'The combination of all the planning and attention to landscape which started from (modern Singapore's founding father) Lee Kuan Yew, has produced an extraordinary outcome. I think the emphasis on planting the city, making it green, is one of the most inspiring decisions made right at the beginning of the state.' That said, architecture in the last decades has leapt in terms of the emergence of 'many sculptural, visually very exciting buildings that are not that livable'. 'At the same time, we're dealing with density in a way that we never had and an environment that's in great danger, with global warming being one. All of that needs to be achieved within a very livable, humanistic environment.' So the challenge Singapore now faces lies in dealing with density and towers as the dominant building type in the city, while keeping it humane. 'This is the next phase as the building codes already encourage the creation of public spaces, gardens and parks at different levels to make the city more livable and achieve a better balance between greenery and construction,' Safdie notes. 'There are many new areas opening up for development here and I hope there'll be a lot of the architectural innovations that we see, some of them downtown, towards that objective.' Of big projects and an unfulfilled architectural dream Home for Safdie is Cambridge, Massachusetts, although he still sticks to a punishing schedule that sees him travelling almost every week. Some of the projects his firm is currently working on include a large addition to the Crystal Bridges Museum of American Art in Arkansas, a museum for the Cherokee people in Oklahoma, the Canadian embassy in Senegal and two medical schools in Israel. In a storied career spanning over six decades, which are the projects most significant to him personally? 'Certainly, Habitat 67, my firstborn, is the most radical thing I've ever done,' he says. 'I'd say my first museum, the National Gallery of Canada, which is now 37 years old, was a very important milestone. The Yad Vashem Holocaust History Museum in Jerusalem, was maybe the most emotionally challenging. 'The United States Institute of Peace headquarters, which President (Donald) Trump just shut down – I hope the building survives – was very important in terms of a symbol of peace.' Habitat 67 in Montreal, Canada. PHOTO: UNSPLASH But if there is one project he would love to work on, that would be to realise the original Habitat 67, which was digitised into virtual reality by Epic Games in 2023. His vision was to create 1,200 prefabricated dwellings arranged in Lego-like stacks, rather than the scaled-down 158 units that were eventually built. The modular units and their sculptural placement allow natural light and enhanced views and are connected to gardens, suspended terraces and pedestrian walkways. Seeing it in its original form is important to Safdie because it embodies the urban idea of a three-dimensional city in which different activities are reorganised to make dense, high-rise housing more livable – a concept which is yet to be realised or understood, he says. 'I'd say if we could build that today, it would look as fresh and meaningful and significant as it did 60 years ago.'
Business Times
5 days ago
- Business
- Business Times
What is Laopu Gold? Its stock soared 2,000% and now it's opened a store in Marina Bay Sands
[SINGAPORE] Up-and-coming Chinese jewellery label Laopu Gold has made waves in the past year with both consumers and investors alike. There has been rapidly rising demand for its offerings – and a stock price that has soared more than 2,000 per cent since its blockbuster Hong Kong listing at an initial public offering price of HK$40.50 last year. Currently, it is at HK$874.50 as at Wednesday's close. Analysts are getting bullish on the stock, and one fund manager has trounced more than 90 per cent of his peers by buying into Gen Z-favoured names such as Laopu Gold. Now, the jeweller is expanding outside of China and has selected Singapore as its first destination, with the opening of its first international boutique at Marina Bay Sands (MBS) marking a key milestone in the brand's ambitious regional expansion strategy. The Singapore store, which has drawn long queues during peak hours, is the first of four planned outside of China, according to Chinese news media. That is as the company positions itself as a serious contender to global names. It plans to open a store in Japan, but the two other locations have not been confirmed. A Bloomberg article in July cited analysts saying that Laopu poses a 'serious threat' to Western luxury brands. The owner of Cartier, Richemont, has warned investors about Laopu's rise, according to reports. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Singapore store The Singapore store opened on Jun 21, with its location just outside the MBS casino. Long queues formed during the weeks following its opening. The store features a product selection based on the existing range, with pricing broadly in line with those at stores in China, UOB KayHian analysts noted. It also launched a new Gold Cross series for the store opening, incorporating Christian elements. 'The company's Singapore store recorded a two-hour wait time during peak time, with a higher proportion of local customers compared to the tourist-heavy Hong Kong and Macau stores, according to management,' said Nomura in a note on Jul 3. 'Management highlighted that future design direction remains rooted in Chinese aesthetics with heritage gold craftsmanship, but international designers have also been introduced to elevate the product's premium/international perception,' it added. Unlike the Singapore store, its store in Tokyo will focus on promoting cultural exchange with non-Chinese communities and emphasising finely crafted gold jewellery tailored to local aesthetic preferences, said UOB KayHian analysts. A different kind of gold business What sets Laopu apart is fundamentally its pricing model. Unlike traditional Chinese jewellers that price by weight and link daily pricing to international gold markets, Laopu uses a fixed-price model that factors in design, symbolism and craftsmanship. Its exclusivity is drawn in part from a strategy pulled from the playbook of its Western competitors. Rising gold prices have pushed investors towards bullion and coins, and gold jewellery sales in China fell around 24.7 per cent to 532 tonnes. But Laopu twice raised prices on its designer jewellery. The business again upped prices of these goods by 5 to 12 per cent last month, said a Reuters report. Laopu is eschewing the spot price for gold to which other domestic competitors peg their selling rates, charging a premium for design and branding. Nomura highlighted, citing Laopu's management, that its pricing mechanism involves at least two annual price increases, with no reductions even if gold prices fall. 'Management believes that fixed pricing and its proprietary gold designs... could help decouple product pricing from gold price fluctuations. This, according to management, will help maintain Laopu's gross margin trend in the long term,' said Nomura. Founded in 2009 by Xu Gaoming – then a government clerk in Hainan's fisheries department – Laopu Gold was officially established as a brand in 2016. It focuses on traditional Chinese designs and craftsmanship. Products include jewellery, ornaments, tableware and seasonal gifts, with a strong emphasis on high-end, goldware pieces marketing at luxury-level branding. Laopu's financials A source with direct knowledge of Laopu's business said its annual sales approached 10 billion yuan (S$1.8 billion) in 2024, up from 3.18 billion yuan in the previous year, said a Reuters report. 'Laopu's average store revenue is nearly 300 million yuan, compared with the average single-store revenue of most international jewellery brands in China, which generate around 100 million yuan to 200 million yuan annually,' the source said. Its gross profit margin has also been stable, at above 40 per cent for three years prior to its first-half 2024 review, according to Phillip Securities Hong Kong. A bigger trend? Laopu's rise underscores a larger shift in Chinese brands muscling in on the global scene, such as electric vehicle giant BYD and toy maker Pop Mart. One such brand is Seres Group, an automaker once best known for its 30,000 yuan minivans, which has overtaken BMW and Mercedes-Benz Group to become China's hottest high-end automaker, with its Aito M9 sport utility vehicle taking the title of the country's bestselling car above 500,000 yuan. Another is Mao Geping Cosmetics, a premium skincare brand founded in 2000, which saw its revenue and profit jump more than 30 per cent last year, even as foreign rivals such as L'Oreal struggled with disappointing sales in China, said a Bloomberg report. Chinese brands may have stolen market share from Nike in sportswear and L'Oreal in beauty, but they still struggle to threaten global luxury players which charge a premium for storytelling, heritage and design. While Laopu might have overtaken 96-year-old chain Chow Tai Fook this year, the road ahead is far from easy. Chow Tai Fook has since introduced its own heritage gold jewellery line, and a number of smaller brands are now mimicking Laopu's ornamental approach, intensifying domestic competition. Still, analysts from Nomura note that Laopu's brand-led approach and focus on product innovation places it in a strong position to defend its lead in a crowded and fast-evolving market. Investing in gold While Laopu Gold is more akin to a luxury consumer good, investments in gold can take various forms such as bullions, futures contracts, gold mining stocks such as CNMC Goldmine and exchange-traded funds (ETFs). This means that, for example, a Laopu Gold bangle with specific designs is more of an artisan item, while an one-ounce Pamp Suisse gold bar is considered a standard investment product. Securities such as gold ETFs also track the price of gold and are backed by physical bullion held in secure vaults, while Laopu Gold does not. 'Gold ETFs are cost-effective with lower storage and insurance costs, as compared to physical gold, and they come with minimal tracking error, meaning they closely mirror the actual price of gold,' said Dan Chang, trading representative at PhillipCapital, in an interview with The Business Times. As for Laopu assets, their sale (and re-sale) values could vary a bit more independently of gold prices, though there is some correlation. For example, a Laopu Gold necklace could sell for S$2,000 even if the gold content is worth only S$1,300. This is because of the excess value of design and branding, whereas an SPDR Gold Shares ETF directly tracks the price of gold. In another circumstance, reselling a Laopu Gold asset may yield 60 to 70 per cent of its purchase price – unless it is a collectible. Comparatively, selling a gold bar or ETF is more straightforward and transparent to investors due to their value pegged to current gold prices. That said, the steady rise in the price of gold, which currently trades at around double its level in 2022, has given Laopu a boost as buyers see its wares as a place to park their cash amid uncertain times.
Business Times
5 days ago
- Business
- Business Times
What is Laopu Gold? This Gen Z darling soared 2,000% and now it's opened a store in Marina Bay Sands
[SINGAPORE] Up-and-coming Chinese jewellery label Laopu Gold has made waves in the past year with both consumers and investors alike. There has been rapidly rising demand for its offerings – and a stock price that has soared more than 2,000 per cent since its blockbuster Hong Kong listing at an initial public offering price of HK$40.50 last year. Currently, it is at HK$874.50 as at Wednesday's close. Analysts are getting bullish on the stock, and one fund manager has trounced more than 90 per cent of his peers by buying into Gen Z-favoured names such as Laopu Gold. Now, the jeweller is expanding outside of China and has selected Singapore as its first destination, with the opening of its first international boutique at Marina Bay Sands (MBS) marking a key milestone in the brand's ambitious regional expansion strategy. The Singapore store, which has drawn long queues during peak hours, is the first of four planned outside of China, according to Chinese news media. That is as the company positions itself as a serious contender to global names. It plans to open a store in Japan, but the two other locations have not been confirmed. A Bloomberg article in July cited analysts saying that Laopu poses a 'serious threat' to Western luxury brands. The owner of Cartier, Richemont, has warned investors about Laopu's rise, according to reports. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Singapore store The Singapore store opened on Jun 21, with its location just outside the MBS casino. Long queues formed during the weeks following its opening. The store features a product selection based on the existing range, with pricing broadly in line with those at stores in China, UOB KayHian analysts noted. It also launched a new Gold Cross series for the store opening, incorporating Christian elements. 'The company's Singapore store recorded a two-hour wait time during peak time, with a higher proportion of local customers compared to the tourist-heavy Hong Kong and Macau stores, according to management,' said Nomura in a note on Jul 3. 'Management highlighted that future design direction remains rooted in Chinese aesthetics with heritage gold craftsmanship, but international designers have also been introduced to elevate the product's premium/international perception,' it added. Unlike the Singapore store, its store in Tokyo will focus on promoting cultural exchange with non-Chinese communities and emphasising finely crafted gold jewellery tailored to local aesthetic preferences, said UOB KayHian analysts. A different kind of gold business What sets Laopu apart is fundamentally its pricing model. Unlike traditional Chinese jewellers that price by weight and link daily pricing to international gold markets, Laopu uses a fixed-price model that factors in design, symbolism and craftsmanship. Its exclusivity is drawn in part from a strategy pulled from the playbook of its Western competitors. Rising gold prices have pushed investors towards bullion and coins, and gold jewellery sales in China fell around 24.7 per cent to 532 tonnes. But Laopu twice raised prices on its designer jewellery. The business again upped prices of these goods by 5 to 12 per cent last month, said a Reuters report. Laopu is eschewing the spot price for gold to which other domestic competitors peg their selling rates, charging a premium for design and branding. Nomura highlighted, citing Laopu's management, that its pricing mechanism involves at least two annual price increases, with no reductions even if gold prices fall. 'Management believes that fixed pricing and its proprietary gold designs... could help decouple product pricing from gold price fluctuations. This, according to management, will help maintain Laopu's gross margin trend in the long term,' said Nomura. Founded in 2009 by Xu Gaoming – then a government clerk in Hainan's fisheries department – Laopu Gold was officially established as a brand in 2016. It focuses on traditional Chinese designs and craftsmanship. Products include jewellery, ornaments, tableware and seasonal gifts, with a strong emphasis on high-end, goldware pieces marketing at luxury-level branding. Laopu's financials A source with direct knowledge of Laopu's business said its annual sales approached 10 billion yuan (S$1.8 billion) in 2024, up from 3.18 billion yuan in the previous year, said a Reuters report. 'Laopu's average store revenue is nearly 300 million yuan, compared with the average single-store revenue of most international jewellery brands in China, which generate around 100 million yuan to 200 million yuan annually,' the source said. Its gross profit margin has also been stable, at above 40 per cent for three years prior to its first-half 2024 review, according to Phillip Securities Hong Kong. A bigger trend? Laopu's rise underscores a larger shift in Chinese brands muscling in on the global scene, such as electric vehicle giant BYD and toy maker Pop Mart. One such brand is Seres Group, an automaker once best known for its 30,000 yuan minivans, which has overtaken BMW and Mercedes-Benz Group to become China's hottest high-end automaker, with its Aito M9 sport utility vehicle taking the title of the country's bestselling car above 500,000 yuan. Another is Mao Geping Cosmetics, a premium skincare brand founded in 2000, which saw its revenue and profit jump more than 30 per cent last year, even as foreign rivals such as L'Oreal struggled with disappointing sales in China, said a Bloomberg report. Chinese brands may have stolen market share from Nike in sportswear and L'Oreal in beauty, but they still struggle to threaten global luxury players which charge a premium for storytelling, heritage and design. While Laopu might have overtaken 96-year-old chain Chow Tai Fook this year, the road ahead is far from easy. Chow Tai Fook has since introduced its own heritage gold jewellery line, and a number of smaller brands are now mimicking Laopu's ornamental approach, intensifying domestic competition. Still, analysts from Nomura note that Laopu's brand-led approach and focus on product innovation places it in a strong position to defend its lead in a crowded and fast-evolving market. Investing in gold While Laopu Gold is more akin to a luxury consumer good, investments in gold can take various forms such as bullions, futures contracts, gold mining stocks such as CNMC Goldmine and exchange-traded funds (ETFs). This means that, for example, a Laopu Gold bangle with specific designs is more of an artisan item, while an one-ounce Pamp Suisse gold bar is considered a standard investment product. Securities such as gold ETFs also track the price of gold and are backed by physical bullion held in secure vaults, while Laopu Gold does not. 'Gold ETFs are cost-effective with lower storage and insurance costs, as compared to physical gold, and they come with minimal tracking error, meaning they closely mirror the actual price of gold,' said Dan Chang, trading representative at PhillipCapital, in an interview with The Business Times. As for Laopu assets, their sale (and re-sale) values could vary a bit more independently of gold prices, though there is some correlation. For example, a Laopu Gold necklace could sell for S$2,000 even if the gold content is worth only S$1,300. This is because of the excess value of design and branding, whereas an SPDR Gold Shares ETF directly tracks the price of gold. In another circumstance, reselling a Laopu Gold asset may yield 60 to 70 per cent of its purchase price – unless it is a collectible. Comparatively, selling a gold bar or ETF is more straightforward and transparent to investors due to their value pegged to current gold prices. That said, the steady rise in the price of gold, which currently trades at around double its level in 2022, has given Laopu a boost as buyers see its wares as a place to park their cash amid uncertain times.
