Demand

Louis Vuitton's China Sales Slide After a Trademark Win Turns Into a Backlash

After a Suzhou court awarded LV RMB 10.3m against local brand Molity, Chinese social media recast the monogram case as an attack on Tang-dynasty motifs. LV's China sales reportedly fell about 30 percent in July and 20–25 percent in August; Gucci and Hermès also declined. Chinese shoppers are roughly 30 percent of LVMH revenue; the figures (Seoul Economic Daily, corroborating Nikkei, Caixin and WWD) are indicative. Read-through: weaker mainland demand raises the value of Chinese spend abroad, Doha included — but LV enters the second half defensively, and its landlords should expect caution on new commitments.

Sources: Seoul Economic Daily, 11 Sep · Seoul Economic Daily, 11 Sep