LVMH sales tumble in China after bubble-tea brand Molly Tea wins trademark case
LVMH’s Chinese sales have slumped after a court ruled that bubble-tea chain Molly Tea infringed Louis Vuitton’s four-petal logo, sparking a backlash on Chinese social media.
A Chinese court confirmed that Molly Tea copied Louis Vuitton’s iconic four-petal monogram, awarding LVMH a victory in July. Despite the legal win, Chinese consumers launched an aggressive social-media campaign alleging cultural appropriation, insisting the design is a traditional Chinese pattern. The backlash translated into sharp sales drops for LVMH: July sales fell roughly 30% and August fell 20-25%, affecting the flagship cruise-ship-shaped store in Shanghai’s prime district.
The slowdown extends to other LVMH brands, with Gucci sales down about 30% over two months and Hermès down around 8%. The episode highlights the fragility of luxury demand in a slowing Chinese economy.
