Laomiao Gold Suffers Significant Depreciation in Second-Hand Market
Laomiao Gold's premium pricing is facing a significant challenge in the second-hand market. The brand's high-end jewelry, which sells for around RMB 38,000 (approximately $5,500 USD) new, can only be resold for about RMB 19,000 ($2,750 USD). This depreciation occurs even when the products are still new and unworn.
Fangfang, a store manager at a national chain gold and jewelry recycling shop, stated that the high premium consumers pay for Laomiao Gold's brand and craftsmanship is barely realized in the second-hand recycling process. The recent drop in gold price has directly lowered the bottom recycling price, making it difficult for recyclers to offer competitive prices.
Afeng, a gold recycler in Beijing, noted that the recycling pricing of Laomiao Gold only refers to the real-time market gold price and the circulation popularity of the style. The brand's luxury positioning cannot be separated from the fluctuation of gold price, and the premium for craftsmanship and brand is basically invalid in the second-hand market.
Consumers who buy Laomiao Gold at high prices may suffer significant losses when they try to resell it, as the second-hand market only recognizes the residual value of gold as a hard currency. The difference between buyer and seller expectations further amplifies the market separation.