What signals does it send when the boss of LVMH visits two Chinese "peer companies" for an on-site inspection?

Text | He Zhexin

Editor | Qiao Qian

In the past two days, many netizens in Shanghai have posted photos on social media of running into Bernard Arnault, the Chairman and CEO of the LVMH Group.

It seems that with the luxury market slow to recover, the richest man is getting anxious.

Netizens ran into the old gentleman and his entourage at shopping malls such as Shanghai Xingye Taikoo Hui, IFC Mall, and Qiantan Taikoo Li. "They visited every single store of LVMH brands and inspected them very carefully."

This is of course not Arnault's first trip to China. Since 2023, the former world's richest man has almost visited China once a year, and these are just his public schedules.

From June 27th to 29th, 2023, he visited Beijing, Chengdu, and Shanghai with his daughter Delphine and son Jean. On November 21st last year, he appeared again at Qiantan Taikoo Li, Plaza 66, and IFC Mall in Shanghai. This time, besides Delphine, his second son Alexandre, who had just been promoted, was also by his side.

Different from the "succession stories" that people talked about with relish in the previous two years, in the face of a somewhat dismal market environment, Arnault's attention to two Chinese "peer companies", Laofu Gold and Shanyouyousong, has become new fodder for discussion.

According to netizens' posts, Arnault and his entourage visited the Laofu Gold store at Shanghai IFC Mall. It is said that he carefully examined the gourds, pendants, crosses, and the displayed goldware and commented that they were "very delicate and interesting".

This is not the first time that executives of the group have visited and conducted research at Laofu Gold in China. In June this year, another executive within the LVMH Group also went to a Laofu Gold store in Beijing for research. A person close to Laofu Gold told 36Kr that such "store inspections" were not invited by the brand. They also learned about the visit of LVMH executives from the mall and received them as ordinary consumers throughout the process.

This does not prevent people from speculating about the possibility of LVMH acquiring Laofu Gold. After all, jewelry is one of the few growth points in the luxury group's business at present.

In the first half of 2025, the performance of LVMH's pillar leather goods department declined significantly again, dragging down the overall performance of the group. In contrast, its competitor Richemont achieved a 4% year - on - year increase in overall sales, thanks to the extensive layout and strong growth of its jewelry business.

LVMH's main jewelry and watch brands include Bulgari, Tiffany, and Chaumet, which are also facing the problem of declining recognition among young consumers in China. Laofu Gold is a strong competitor in this category. According to Laofu Gold's financial report and research data from Frost & Sullivan, the average overlap rate between Laofu Gold consumers and consumers of the top five international luxury brands such as Louis Vuitton, Hermès, Cartier, Bulgari, and Tiffany is as high as 77.3%.

In the more familiar leather goods segment, LVMH's boss choosing to "research" the domestic brand Shanyouyousong is probably to "scout the competition" for Polène, in which LVMH invested not long ago.

Last year, LVMH made a minority investment in Polène through L Catterton. Polène was founded in Paris in 2016. It targets the mid - range market, focuses on handicrafts, and has a simple design. Its comparable brands are set as leather goods brands such as Coccinelle, Furla, and Longchamp. Since then, LVMH has also placed a chess piece in the "affordable luxury" segment.

Polène has gained a certain degree of popularity in the French and European markets, but its potential for international expansion is still huge. After the investment by L Catterton, the brand quickly expanded its influence globally, especially in the US and Asian markets. In June this year, Polène's first store in China opened in Sanlitun, Beijing, next to Louis Vuitton.

"Polène has greater flexibility in price while still maintaining a high - end luxury positioning, which allows it to attract consumers in emerging markets who have a demand for luxury goods but are not willing to pay a premium for well - known brands." Gina, who works in marketing in the luxury industry, told 36Kr.

And this positioning happens to highly overlap with the customer base of domestic "thousand - yuan handbag" brands such as Shanyouyousong.

As a domestic designer handbag brand that has emerged in recent years, Shanyouyousong has quickly carved out a niche in the market with its unique Oriental aesthetic design and the positioning of being affordable and high - quality. The brand's price range is concentrated around 1,000 yuan, targeting young urban consumers who pursue both design and practicality, and it has a relatively high recognition rate among white - collar women in first - tier and new first - tier cities.

Although Shanyouyousong has not publicly disclosed its specific revenue data, judging from the buzz on social platforms and the scale of e - commerce reviews, its user stickiness and repurchase rate are outstanding. Many consumers commented that it is "cost - effective" and "the design is no less than that of big brands". At the same time, the brand is also facing challenges such as plagiarism disputes and intensified market competition.

Arnault's two in - depth "store inspections" not only show his high - level attention to the Chinese market and domestic brands but also send out a strong signal of strategic review during the industry's downturn. Whether it is the craftsmanship and cultural value of Laofu Gold or the potential of the mid - range market represented by Shanyouyousong, it shows that LVMH is actively adjusting its perception and layout of the Chinese market.

Although the possibility of a direct acquisition is low, establishing cooperation, drawing inspiration, and even pre - judging the competitive situation have all become important measures for this luxury giant to cope with industry changes. The Chinese market is still a big game that LVMH doesn't want to miss.