Luxury Brand 'Louis Vuitton' Becoming China's Prey [Correspondent Diary]

China Raises White Flag on Canada Goose, Immediately Targets Louis Vuitton Refund Policy
China's Two Faces... The World's Largest Luxury Market and Notorious Counterfeit Manufacturer

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese state-run media harshly criticized the French luxury brand 'Louis Vuitton,' accusing it of discriminating against Chinese consumers by applying different refund policies within China.

[Image source=Reuters Yonhap News]

Previously, Chinese state media targeted the Canadian brand 'Canada Goose' for having different refund policies in China compared to its global refund policies. Under pressure from public opinion in China, Canada Goose eventually conceded, stating, "If it complies with relevant legal regulations, products sold at all specialty stores in mainland China can be exchanged or refunded."

Chinese media outlets such as CCTV and the state-run Global Times reported that the French luxury brand Louis Vuitton applies a 'double standard' refund policy in China. The day after Canada Goose announced it would allow returns and refunds according to relevant laws, Louis Vuitton became the target of Chinese public opinion.

CCTV reported that in the United States and Canada, full refunds are available within 30 days of purchase, but China is excluded from this refund policy. The outlet cited a Louis Vuitton specialty store official who confirmed that exchanges or refunds are not actually allowed in China.

However, it added that refunds are possible within 7 days of receiving the product when purchased online. CCTV emphasized that in the US and Canada, both in-store and online purchases allow exchanges and refunds within 30 days.

Chinese media pointed out the exchange and refund policies stated on Louis Vuitton’s official websites in the US and Canada. They reported that consumers in 11 countries, including China, Brazil, Colombia, the Dominican Republic, India, Jordan, Kazakhstan, Mexico, Russia, Lebanon, and South Korea, are being discriminated against by Louis Vuitton.

Following reports on Louis Vuitton’s dual exchange and refund policies, posts flooded Chinese social networking services (SNS) such as Weibo (the Chinese version of Twitter), calling for the Chinese government to step in to protect the rights and interests of Chinese consumers, according to the Global Times.

The controversy over luxury brands’ exchange and refund policies in China began with Canada Goose. Last month, a Chinese consumer in Shanghai purchased a padded jacket worth 11,400 yuan (approximately 2.1 million Korean won) from Canada Goose and requested a return citing quality defects such as the logo, but was refused.

[Image source=Reuters Yonhap News]

As the controversy grew, Chinese authorities intervened. On the 1st, the Shanghai Consumer Rights Protection Committee summoned Canada Goose for a scheduled meeting. According to the investigation by Chinese authorities, Canada Goose applied a 'refund within one week' policy in China, unlike the 'unconditional refund within 30 days' policy applied worldwide.

In an article dated the 1st, the Global Times criticized overseas luxury brands for their double standards, stating that Canadian companies seem to hold 'prejudices' against mainland Chinese consumers and tend to blindly believe those prejudices. Here, the prejudice is presumed to refer to counterfeit products. The price of counterfeit Canada Goose padded jackets sold in South Korea, which retail around 2 million Korean won, varies by grade but is generally around 1,500 yuan. The prejudice is also presumed to include suspicions of 'swapping counterfeit and genuine products.'

Meanwhile, Chinese media reported that many other overseas luxury brands besides Louis Vuitton and Canada Goose discriminate against China and Chinese consumers, suggesting that additional reports on other brands are expected. Considering China’s purchasing power, it will be difficult for overseas luxury brands to maintain their existing refund policies.