Louis Vuitton Wins Lawsuit Against Molly Tea But Faces China Sales Drop
- The legal dispute centers on a geometric four-petal floral logo used by Molly Tea that the French luxury house argued was too similar to its iconic monogram.
- According to estimates cited by Fortune Italia from market research firm JL Warren Capital, Louis Vuitton sales dropped by 30 percent in China during July.
- The controversy arrives amid a broader economic slowdown in China that has dampened discretionary spending on high-end goods.
The legal dispute centers on a geometric four-petal floral logo used by Molly Tea that the French luxury house argued was too similar to its iconic monogram. On June 29, 2026, the Suzhou Tribunal ruled in favor of the French conglomerate and ordered Molly Tea to pay 10,3 million yuan, equivalent to roughly 1,5 million dollars, according to Fortune Italia. While Molly Tea has announced plans to appeal the verdict, the legal victory has triggered widespread public backlash across Chinese social media platforms.
Sales Slump and Social Media Backlash in Key Asian Markets
According to estimates cited by Fortune Italia from market research firm JL Warren Capital, Louis Vuitton sales dropped by 30 percent in China during July. While July is historically a slower month for the Asian retail sector, the downward trend continued into August during the Qixi Festival, often referred to as Chinese Valentine’s Day, with sales falling between 20 and 25 percent. The financial impact coincides with an intense wave of public criticism. As reported by Fortune Italia, citizens accused Louis Vuitton of cultural appropriation on social media, arguing that the four-petal floral motif resembles traditional Chinese floral designs, specifically the baoxianghua from the Tang dynasty. The South China Morning Post noted that discussions surrounding the court verdict generated approximately 400 million views on Weibo, while a hashtag supporting Molly Tea surpassed 30 million views.
Broader Luxury Market Pressures on LVMH
The controversy arrives amid a broader economic slowdown in China that has dampened discretionary spending on high-end goods. According to data from UBS Group cited by Fortune Italia, the Asian market outside of Japan accounted for roughly 29 percent of total revenues for LVMH Moët Hennessy Louis Vuitton during the first half of 2026, with Chinese consumers driving approximately 30 percent of overall sales. Bloomberg figures reported by Fortune Italia indicate that shares of LVMH have fallen by more than 36 percent since the beginning of 2026, pushing the stock back down to levels last recorded during pandemic-era lockdowns.
