#77: Molly Tea's LV fine backfires, Shein nears HK IPO, Luckin and Duolingo's babies, Chef Fei to enter the U.S. | Following the Yuan
LV's courtroom victory over Molly Tea has turned into a PR defeat, as Chinese consumers and state media question who owns traditional Chinese patterns.
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Brands mentioned in this issue: Heytea, Luckin (OTCMKTS: LKNCY), Duolingo (NASDAQ: DUOL), Chef Fei, Louis Vuitton (parent’s ticker EPA: MC), Molly Tea, Shein, Chanel, Taobao Flash Shopping (parent’s ticker HKG: 9988, NASDAQ: BABA), Tencent (HKG: 0700; OTCMKTS: TCEHY), UBTech, Salomon (NYSE: AS), H World Group (HKG: 1179), Grand Ji Hotel, Gambol Pet (SHE: 301498), Pure & Natural
🎭 CONSUMER CULTURE
Real names take over actor credits // Chinese actors typically use their stage names, which helps with building their larger-than-life persona, but that will change this month.
After disputes over actor credit rankings stalled productions and fueled wars among different fan groups, three entertainment industry associations issued a joint notice to demand actor credits to be in their legal names and ranked by surname stroke count. The rule took effect July 10 for all newly premiered dramas.
💄 FASHION & BEAUTY
How did Molly Tea’s 10 million RMB fine turns Chinese consumers against LV // A Suzhou court ruled that the tea chain’s four-petal flower logo infringed LV’s registered trademarks, ordering 10 million RMB ($1.4 million) in damages plus 300,000 RMB in legal costs — among the highest awards ever in a new-tea-drinks trademark case. Molly Tea’s founder says he will appeal.
The ruling sparked heated debate online, with many arguing LV’s monogram itself resembles traditional Chinese motifs, including People’s Daily’s official commentary. Netizens piled on by unearthing other luxury logos that resemble ancient Chinese patterns — from Van Cleef & Arpels’ four-leaf clover to Gucci’s double-G.
SHEIN’s Hong Kong IPO enters the final countdown // China’s securities regulator has issued a filing notice allowing Shein to issue up to 342 million shares on the HKEX. The company is reportedly targeting a September–October listing at a $40–50 billion valuation — a steep discount from its $100 billion peak in 2022, but hopefully, the end of a years-long saga after failed attempts in New York and London.
Cosplay wigs enter the 3D-printing era // Cosplay wig makers are adopting 3D printing to produce gravity-defying anime hairstyles in a more accessible manner.
Conventional wigs for cosplayers take a long time to build, and are difficult to transport and heavy to wear. The guzi economy (from the English “goods”) — China’s booming anime and game merchandise market — seems to be reshaping upstream production techniques.
Chanel eyes Wuxi for its first prefecture-level city store // Chanel is reportedly in talks with Hang Lung Properties to open a store in Wuxi, Jiangsu province — which would be its first in a prefecture-level Chinese city. The brand currently operates in 12 mainland cities. A signal that luxury’s China playbook is shifting: from defending tier-one flagship locations to betting directly on the spending power of wealthy secondary cities.
🍽️ FOOD & BEVERAGE
Heytea launches DIY drinks // Customers can now build their own drinks when ordering HeyTea — choosing tea base, juice, toppings, and even naming their creation, with over 10,000 possible combinations. Pun-laden drink names went viral, hitting Gen Z’s appetite for personalization and emotional consumption squarely on the nose.
Luckin × Duolingo turn their co-brand into a soap opera // A year after the “wedding of the century” between Duolingo’s owl and Luckin’s deer mascot, the pair announced they’ve “laid 11 eggs in their first year together” (1 co-branded drink + 4 packaging designs + 6 merch items), complete with a scripted mini-drama sequel. While netizens begged the bit to stop, other brands from Alipay to Midea happily joined in the comments.
Chef Fei’s first U.S. store set to open // Hunan-cuisine chain Chef Fei is landing in San Diego’s Westfield UTC, pivoting its hero dish from the beloved “stir-fried pork with chili” to the more America-friendly “Broccoli Beef,” and offering U.S. store managers $110K–150K a year. The franchise has around 200 restaurants across China.
🛍️ RETAIL
Taobao Flash Shopping quietly tests social app “LitCircle” // Alibaba’s on-demand instant delivery Taobao Flash Shopping recently launched a new standalone app LitCircle,” has no chat function and no endless feed.
Instead, users share what they just ordered and join local interest groups — think finding concert buddies, then splitting a late-night delivery order together. It’s Alibaba’s entry into the local “activity-buddy” race, where Meituan, Douyin and JD.com have all launched similar apps.
🧠 TECH
Tencent launches “Toast” on iOS // On July 7, Tencent launched Toast, a vibe-coding app that lets users generate and tweak their own applications. Developer-facing features — one-stop app publishing and monetization tools will arrive in August.
Companion robots are selling out // On June 30th, UBTech unveiled its ultra-humanlike U1 series in Shenzhen, priced from 119,800 RMB (half-body) up to 880,000 RMB (female) and 990,000 RMB (male), racking up 13,361 orders on launch day.
Positioned for emotional companionship, the robots also drew criticism over 2–4 hour battery life and controversy over its potential role as intimate companions.
🏃♂️ SPORTS
Salomon launches “China Next Gen Project” // Salomon officially announces its China Next Gen Project, signing an initial cohort of six young athletes aged 18 to 24 and bringing them into the brand’s global Next Gen athlete development program. It marks a shift among international outdoor labels from selling products to cultivating athlete assets and local communities — a bid to lock in China’s trail-running boom.
🌍 TRAVEL & TOURISM
The first Chinese hotel brand at Paris Design Week // H World Group’s premium brand Grand Ji Hotel will exhibit at the 16th Paris Design Week this September as an official annual partner, showing at a permanent exhibition hall inside the event’s main venue. The hotel concept debuted at the 2025 H World Partner Conference, and opened its first location in Hangzhou in 2026.
🐾 PET
Premium cat food faces safety scares // Pet owners in China reported over 5,000 cases of cats developing hind-leg weakness or paralysis, with suspicion pointing to cat food from Pure & Natural (backed by LVMH’s private equity fund L Catterton) and Gambol’s premium brand Fregate. Both companies claimed that multiple rounds of testing have found no safety issues. 🔚
🗓️ UPCOMING – PICK & CHOOSE YOUR CHINA ITINERARY IN JULY/AUG 2026
Jul 23-25, China Daily-use Articles Trade Fair, Shanghai
Jul 31-Aug 3, 2026 China Joy, Shanghai
Aug 19-23, 2026 World Robot Exhibition, Beijing
News gathering & writing: Rongrong Zhuge
Editor: Yaling Jiang
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