Posted on 04/18/2025 4:03:33 AM PDT by EBH
Amid the tariff war, China floods social media with videos revealing the truth about designer products.
China has let ALL the cats out of the luxury bag. With social media capturing global attention amid the tariff war between China and the US, the contender in the red corner has unleashed a flurry of short video jabs that have essentially exposed the entire luxury goods industry.
You may have seen a few (or many) already, and if not, you likely will soon. International platforms like Instagram, Threads, X, and LinkedIn are currently flooded with content creators and factory representatives detailing exactly how designer products are made. As many have suspected, most are manufactured in China. Once a stigmatized label, the “Made in China” stamp is now, in a way, a badge of authenticity.
Many of these videos reveal that a bag from a luxury brand is largely produced by Chinese workers in China, then shipped to, say, France or Italy, for final embellishments. This process “earns” the product its “Made in France” or “Made in Italy” tag, which mainstream consumers perceive as “luxurious.”
If you’re in the industry, this is likely old news. However, China’s timing is impeccable, broadcasting this fact to the mainstream during a painful tariff war and global recession. “Is your Birkin bag even costlier now? Can’t afford it anymore? Just buy one from the original manufacturer in China.”
While many of these videos are clearly factories marketing their own products—while still OEMs for notable labels—they’re part of China’s broader, subtle agenda to destigmatize its consumer industries for a global audience. To further this, China now offers a 240-hour (10-day) visa-free transit policy for many countries, including the United States and several in Europe. Add point-of-purchase rebates and easy-to-join shopping tours, and, well… you might as well buy a luxury suitcase in China to carry all those white-label luxury goodies you’ll snag there.
I think the real damage is to the cachet of these luxury products—which is the whole point of buying them.
It’s like flashing a Rolex in front of your friends and associates and then having it exposed as a knockoff from a Times Square street vendor.
The value isn’t just in the materials—it’s in the illusion. Once that’s gone, so is the appeal.
“The best knockoffs are made in Korea. Better quality than the “real” ones made in China.”
On Canal Street in lower Manhattan, vendors have been selling the Chinese made luxury handbags to people. These are the handbags that never made it to France for repackaging. A broken thread here, a piece of plastic there. It’s the same bag.
The only thing I ever saw when I shopped Canal Street that was obviously faked was China’s “Rolecks” watch. Can get one for about $50 bucks.
I’m more concerned with my medicine, rare minerals etc. from coming from China. Google NIOCORP. We need the political will to start developing raw materials in the USA.
I had someone “gift” me a Michael Kors handbag. I knew it was reject, but it is darn close. Even the hardware on it is correct, the lining inside though was upside-down.
These big brands have complained for years about the knock-off industry. There’s even laws about selling the off label stuff. But as many may be waking up to realizing it is all made in China and the good knock-off may very well be made in the same factory.
The endless videos on Youtube show all the luxury goods retailers in miles after mile of shops, thousands of square meters of empty malls and air port stores....... closed
You can’t take a luxury shopping tour if there are no shops
https://youtu.be/i6Bpwv0f2tQ?si=mxT8uytR81JA7YCY
As Trump raises tariffs on China to 245%, Xi hits back with another counterfeit. China’s new move has stunned both luxury brands and global shoppers. After weeks of social media takedowns showing how luxury goods are made in Chinese factories, Beijing is now offering visa-free entry for travellers from the U.S., Europe, and beyond — with a twist
The factories sell through outlet centers, not retail stores - as in the USA, the latter are often independently owned and in big financial trouble right now. The CPC will of course make sure the economic hit falls hardest on the small business owner, rather than any party-connected industry.
But as someone who has had up-close and personal experience with the Chinese luxury goods market, here's how it worked - at least pre-tariff.
Guangzhou has a large luxury leather goods center, not far from the Guangzhou South railway station. All of the leather factories have showrooms there - it's a perfect place for a tour group to visit. You will notice many touts outside trying to give you cards with phone numbers, unlike Las Vegas these are trying to sell you the "good stuff." There are also many police officers outside, who will steer these touts away from foreign-looking buyers under threat of arrest. These guys, however, are not a necessary part of the process - more like independents who get a commission if they bring in any sales, and they usually work for smaller factories who can't afford the rent in the big building.
Inside the building, leather goods factories have showrooms - some of them very nice. Contrary to popular opinion many of these showrooms feature very high quality products, including exotic bags bade of materials like crocodile leather and stringray - illegal to import into the USA but the plentiful Middle Eastern buyers have no barriers like this. These are not the cheap knockoffs you see in tourist areas all over Asia.
Some of the factory showrooms feature designer-style handbags with no logo. Some of these are mere approximations of the designer bags - some are exact copies. And I mean exact, made of the same quality materials and constructed using the same methods - again, missing only the logo. These bags are for sale for what would be a "fair" prices for such an item without the brand attached - usually $50-$100 US. You can buy one and take it home, no problem - as long as it isn't crocodile. :)
But there is another layer. Tell the sales rep quietly that you are looking for a genuine designer bag. The rep will show you one of the exact copy, logo free examples. When you agree on the one you want, you will pay the rep (in cash, RMB or USD) maybe $200 and give your hotel address and room number.
Later that day, when you get back to your hotel, a designer bag will be waiting for you in your room, complete with logo, certificate of authenticity, brand packaging - all identical to what you would get at a luxury brand retail outlet.
Now, the brands have for years tried to call these types of bags "fake" to protect their value. US Customs (fervently) and the Chinese police (indifferently) try to enforce laws against export and import of these bags, although if you buy one as a private individual and carry it through the airport as your own they can't really do anything about it.
What is actually happening is that these bags are genuine and the Chinese factories are selling out the back door to make more money, usually to clear off overstock or excess production. This is what the Chinese factories are now starting to publicize on TikTok: "We make these, we can sell them to you direct for $200, why are you paying a European brand $5,000?"
The brands' protests ring hollow - they moved a lot of production out of Europe decades ago, and should have known this day would come. To them, it's all Trump's fault - but Trump's tariffs just pulled back the curtain and exposed what they are doing. The myth that an old world craftsman in Tuscany made your bag dies hard, but you have to go to Tuscany and talk to one directly to get something like that. Big branding requires a streamlined supply chain and a much higher markup.
More Chinese propaganda the the media is too ready to swallow whole.
China does not understand that the stigma of low price will prevent upscale shoppers from buying their crap. They certainly will not want to buy a bag that someone in flyover country could afford. The original companies that offshored the expensive crap will never come back either after what China has done to them. They really shot themselves in the foot yet again.
This was known for years but covered up and most people not willing to listen...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.