Lao Feng Xiang terminates Maybach luxury goods Asia-Pacific equity investment, but still wants to tell a good story about gold luxury goods.

Lao Feng Xiang has terminated an equity investment related to Maybach luxury goods.

On June 30th, Lao Feng Xiang announced that its subsidiary, Lao Feng Xiang Hong Kong Limited, has terminated its equity investment in Maybach Icons of Luxury Asia Pacific Limited (MAP), and signed the relevant termination agreement.

The reason is that Maybach Icons of Luxury GmbH (MIOL) authorized its Shanghai-based subsidiary, Maybach Trading (Shanghai) Limited, to carry out Maybach luxury goods' business activities in China.

With this arrangement in place, MAP’s original business model, scope, and brand authorization conditions changed, prompting the parties to negotiate to terminate the original equity investment arrangement.

On this basis, Lao Feng Xiang also adjusted its cooperation method: its subsidiary, Lao Feng Xiang Zhenpin Trading (Shanghai), signed a new brand agency agreement with Maybach Trading (Shanghai), and will continue to undertake brand agency business in China.

In other words, Lao Feng Xiang has shifted from the previous “investment in the Asia Pacific platform + agency business” model to a purely brand agency cooperation for China, making the focus of their cooperation more concentrated on the brand and channel level.

The cooperation between Lao Feng Xiang and Maybach luxury goods originated from its pursuit of elevating the brand to a more premium level.

In 2025, Lao Feng Xiang had planned to subscribe to 20% equity in MAP for $24 million; meanwhile, Lao Feng Xiang Zhenpin Trading obtained the dealership rights for Maybach luxury goods in Asia Pacific, with exclusive rights in Shanghai.

Under this cooperation framework, the two parties not only focused on sales, but also included brand promotion, channel building, client operations, and buyout purchases among other aspects.

The disclosed procurement arrangement at the time showed that Lao Feng Xiang’s procurement from MAP during the 2025 transition period would not be less than $1 million, not less than $2 million for each half of 2026, and not less than $2 million every quarter from 2027 onwards, totaling no less than $13 million over three years.

Maybach luxury goods channels in Asia Pacific are not mature.

MAP itself was registered in Hong Kong in February 2025, and at the time of Lao Feng Xiang’s planned investment, it was still in its early stage, with channel building in Asia Pacific more of a plan and introduction rather than an established network.

Meanwhile, the Maybach familiar to the public mainly comes from Mercedes-Maybach automobiles, whereas the Maybach luxury goods involved in Lao Feng Xiang’s cooperation do not include automobile business, and are mainly focused on high-end eyewear, leather goods, accessories, equestrian products, apparel, home goods, and other non-automotive luxury items, with its brand value more reflected in symbolism and positioning.

Lao Feng Xiang is just one of many companies participating in the reshaping of the pricing logic for gold brands.

Over the past two years, rising gold prices have reinforced the asset nature of gold, providing room for brands to tell stories of premiumization and luxury, as consumers pay both for aesthetics and identity, and also for value preservation.

However, as gold prices came down from recent highs and entered volatility, the luxury narrative for gold brands has started to undergo a pressure test. For gold jewelry brands, whose performance has always been tightly linked to gold prices, seeking new growth paths through premiumization and brand premium remains a gamble worth trying.

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