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Louis Vuitton shuts down another store amid fallout from trademark dispute in China
The latest China store exit in Guiyang highlights the luxury brand’s struggle to balance prestige with cultural empathy amid legal disputes
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Zhu Wenqianin Beijing
Louis Vuitton will close its only store in Guiyang on August 31, according to an on-site notice, further trimming the French luxury brand’s southwestern China footprint, which has fallen to three stores from a peak of six.
The closure in the capital of Guizhou province is part of the brand’s plan to optimise its retail network as it recalibrates strategy in the world’s second-largest consumer market amid soft domestic spending and shifting luxury consumption trends.
It coincides with a string of trademark lawsuits Louis Vuitton has filed in China.
In one case, local tea chain Molly Tea was ordered to pay the brand 10.3 million yuan (US$1.5 million) in July over the use of a similar logo. The verdict sparked heated online debate, but also drew public support for the Chinese company.
“We see limited short-term sales impact from the Molly Tea incident. However, the real risk lies in the long-term effect on younger Chinese consumers, who will form the future consumer base for Louis Vuitton,” said Sandy Lim, director at S&P Global Ratings.
“They prioritise cultural respect and brand empathy over pure prestige-driven exclusivity. The controversy could create a higher perceived barrier for this cohort, which Louis Vuitton would need to address at some point down the road.”
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