Some Chinese factories and its workers have recently uploaded few videos online claiming that 80% of the global luxury brands are developed in-house in China with “Made in Italy” and “Made in France” labels. China is misusing its social media platforms to create a sense of doubt in the mind of the global buyers regarding the authenticity of luxury brands such as Gucci, Prada, Louis Vuitton, Hermes and etc. and by doing so they are quietly dismantling the luxury brand market. For example, as per few videos by TikTok user ‘senbags2’ a Chinese worker claims that they are the Original Equipment Manufacturer (OEM) of luxury handbags from Gucci, Prada, and Louis Vuitton while boasting about its craftsmanship and supply chain. Many such ‘misleading’ short videos are doing round in the social media as part China’s strategy to counter 145% tariff imposed by the United States and at same time create chaos in the luxury brand market.
The European company Hermes manufactures its products in France and has high-end consumers for its handmade, rich-quality goods. Now, these consumers are flocking Chinese e-commerce apps for a much cheaper buy of the same products that actually priced in thousands of dollars. The Chinese workers claim in the videos that because the labor in France is high and the overall cost of Hermes handbags, including leather, chains, threading and oiling, involves too much investment that makes it overpriced. Therefore, the Chinese workers claim that they can sell the same quality, same material bags at much cheaper rates, as the exorbitant price is actually for the brand’s logo. However, the reality is that these handbags that Chinese are claiming to be original are just a spin-off of the original Hermes products. Hermes procures the leathers for its products from three top-level suppliers – Nuti from Italy, Weinheimer from Germany, and Haas from France. The thread used to knit on these bags is called Fil au Chinoise from France and metal chains are also of top-notch quality, which makes these bags stands out in global market and brand marketing makes them premium. But China through its viral videos is trying hard to attack the luxury brands claiming that they are the original manufacturers and can offer the same products at “affordable” rates.
These ‘propagandist’ videos from China are getting a lot of eyeballs online claiming that China-made products can rival top western brands and websites selling these Chinese dupes are getting high traffic too. Chinese website DHgate has secured number two spot in America by selling the Chinese spin-offs of original luxury brands that not only includes handbags and other leather accessories, but also apparels and shoes. These videos are not just on TikTok, but also on other Chinese platforms such as Waybo and Rednote fueling the trade war with the European brands. A viral meme of American President Donald J Trump sewing a MAGA (Make America Great Again) hat in a Chinese factory is again an example of offensive content against the US.
However, the US tariffs can shut these Chinese factories down with shipping costs doubling and the prices of key materials going off the roof. Chinese commerce ministry is looking for a dialogue with its US counterparts to take back its tariffs and indulge in meaningful discussions. Earlier, President Trump’s administration had chocked China’s supply chains by imposing 145% tariff, which on record is the highest on consumer goods and fashion imports, while there is exemption on certain electronic goods. The move is lauded by the experts as bold that will re-vitalize the American manufacturing cost. The US companies now would not rely much on Chinese supply chain network and manufacturing, and after few hiccups would eventually found their own standing in the global markets.
China has a shaking economy that is further rattled by the White house diplomacy. The Dragon is trying hard to keep its sinking boat afloat by selling duplicate products in the local markets; but globally its manufacturing industry has taken a hit. Though, there is an impact on luxury brand industry, where there is a visible decline of 2% in sales figures of 2024, with China’s contribution dropping from 50 per cent to just 12 per cent of global sales. China is still going for an eye for an eye approach imposing its own retaliatory tariffs on the US goods. However, the global luxury brands have realized that as US-China trade stand-off escalates they need to reassess strategy to win back the consumer’s trust and build a status that doesn’t gets impacted by online defamation originating from China.