Louis Vuitton won a trademark lawsuit against a small Chinese tea brand — and lost millions in sales as a result. A patriotic backlash on Chinese social media over the legal fight has deepened an already painful slump for LVMH's…
Louis Vuitton's China sales fell an estimated 30% in July and 20-25% in August after its trademark win against tea brand Molly Tea sparked patriotic outrage, according to Bloomberg.fashionnetwork+1
Chinese social media users rallied behind Molly Tea, arguing its logo resembles a traditional Tang Dynasty pattern and calling it unfair for a luxury giant to sue a small local chain.sedaily
LVMH shares have dropped more than 36% this year; HSBC downgraded the stock to hold, calling the backlash's impact likely short-term but damaging to Q3 results.fashionnetwork