Chinese consumers are reportedly seeing a drop in sales for the luxury brand Louis Vuitton, following a legal dispute with Molly Tea, a popular Chinese chain known for its jasmine tea-based drinks. In a court in Suzhou, it was ruled that Molly Tea had violated Louis Vuitton's intellectual property rights by using four-petaled flowers similar to the brand's iconic monogram. The court ordered Molly Tea to pay about 10.3 million yuan (approximately 1.3 million euros) in compensation, though Molly Tea plans to appeal the decision. Despite the legal win, the outcome has hurt Louis Vuitton's reputation in China. On social media, many users supported Molly Tea, viewing it as a local business unfairly targeted by a foreign giant. The controversy took on a cultural and patriotic tone, with some Chinese media drawing comparisons between the Vuitton monogram and traditional Chinese designs from the Tang dynasty. Some netizens accused the brand of trying to claim or monopolize a symbol from Chinese heritage. The Beijing Daily raised questions about how well traditional motifs are protected in China. The dispute sparked calls for a boycott of Louis Vuitton on Chinese platforms. A source close to the group told BFM Business that a local boycott had taken place, with sales dropping by about 50% in some weeks. While Chinese Valentine's Day in August, a time when gift purchases typically rise, helped a bit, overall, Louis Vuitton's revenue in China may have dropped by around 20% during the start of the third quarter. LVMH, the parent company of Louis Vuitton, did not comment on these figures, as it does not release detailed sales data for individual brands or countries. Analysis firm JL Warren Capital estimated that Louis Vuitton's sales in China declined by 30% in July and 20 to 25% in August. However, the Molly Tea issue is not the sole reason for the brand's struggles in China, which is already seeing a weakened luxury market. According to Bain & Company, the Chinese personal luxury goods market contracted by 3 to 5% in 2025, following a decline of 17 to 19% in 2024. A modest recovery was expected in 2026, but it remains uneven across brands, with leather goods seeing an 8 to 11% decline in 2025. Luxury brands have also faced challenges due to significant price increases since the pandemic, which have discouraged some consumers looking for better value, quality, and actual product worth. Local alternatives and "pingti" products, which mimic major brands but are sold at much lower prices, are increasingly popular among young Chinese consumers. Despite these challenges, Louis Vuitton plans to stay in China. In the summer of 2025, the brand opened "The Louis," a concept store in Shanghai designed to look like a 30-meter-high cruise ship on Nanjing West Road. This space combines a retail store, an immersive exhibition, and a café, reflecting a new strategy among luxury brands in China: focusing on experiences to attract customers and maintain brand desirability.