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This case explores the predicament Louis Vuitton Moet Hennessy (LVMH), one of the world''s leading luxury products maker, faces with respect to brand management while expanding its operations in China. LVMH, a US$13 billion group of companies with operations across the world - 1,500 retail stores in about 60 countries, had conquered the luxury goods market successfully in Europe, the US and some parts of Asia. In the early 1990s LVMH decided to expand its operations in China and South Korea. A decade later, LVMH made its entry into India. In 2004, Asia accounted for about 40% of the sales of LVMH. LVMH is determined to capture the growing Asian market. It however faces several challenges in its expansion plans in Asia; one of its major concerns is protecting its brand against dilution. China, although a huge market, is also a place where phoney branding is endemic. In addition, LVMH''s expansion plans in Asia also opened up the issue of private ownership versus franchising with regards to the profitability of companies in the luxury goods industry.