Louis Vuitton shuts down another store amid fallout from trademark dispute in China
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 retail network as it recalibrates strategy in the world’s second-largest consumer market…
Louis Vuitton announced it would close its sole store in Guiyang, China on August 31, reducing its presence in southwestern China to three stores from a previous peak of six. The move is part of the luxury brand's strategy to optimize its retail network as it navigates softer domestic spending and evolving luxury consumption patterns in China's second-largest consumer market.
This development follows a series of trademark lawsuits filed by Louis Vuitton in China. One notable case involved Molly Tea, which was ordered to pay the brand 10.3 million yuan (approximately US$1.5 million) for using a similar logo in July. The lawsuit sparked both legal proceedings and heated online discussions, with some Chinese consumers standing in support of Molly Tea.
Sandy Lim, director at S&P Global Ratings, suggested that while the immediate sales impact from the Molly Tea incident might be limited, the long-term risk lies in its potential effect on younger Chinese consumers who value cultural respect and brand empathy over exclusivity. Over the past year, Louis Vuitton has been reducing its store count in China, having already closed outlets in Kunming, Yunnan province, Chengdu Tianfu International Airport in Sichuan province, and a non-duty-free store at the Beijing Capital International Airport.
Sandy Lim emphasized that the brand is emphasizing quality over quantity in its store network to enhance consumer experience, catering to China's changing luxury consumption trends where premium pricing is justified by immersive brand experiences and high-touch VIP services. The company is strengthening its flagship stores in top-tier cities like Beijing and Shanghai, recently opening a dedicated store in Beijing's Taikoo Li Sanlitun North after launching "The Louis", a boat-themed conceptual landmark in Shanghai's HKRI Taikoo Hui in June 2025.
Despite ongoing market volatility, China's personal luxury goods market is projected to experience modest growth in 2026, as reported by consultancy Bain & Company.
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