Socially, culturally, financially and beyond, we’re in the thick of some tense times. Donald Trump’s trade war is just one piece of the big, disorienting puzzle of what the world is facing right now.
As many businesses grapple with the heat of the tariff wars, Chinese manufacturers and influencers are fighting back. They are offering a behind-the-scenes peek at how the world’s most luxurious brands produce high-priced items—and just how much extra we pay for a logo.
Tariffs vs Consumerism
Right now, the U.S. has 145% blanket tariffs on Chinese goods, while China implemented a 125 rate on U.S. goods in response.
The Western world and top brands have long benefited from the exploitation of cheap labour and extreme consumerism. Balenciaga jumpsuits and Chanel blazers hold incredible power as status symbols.
Consumer culture is inherently connected to fanaticism with brands and labels as a reflection of our individual, personal worth.
Amidst the tariff chaos, Chinese social media pages have exploded with content shattering the illusions brands create to give their collections greater prestige, and of course, make the price somewhat more justifiable.
Factory workers and retailers have revealed how Made in US or Made in Italy stamps are often placed or sewn into goods that are, in fact, Made in China.
Cat’s out of the Birkin Bag
One luxury handbag maker, @Senbags2 on TikTok, went viral for showing how a signature Hermes Birkin bag costs approximately $1,400 to make and can be sold for $100 in China. Meanwhile, Birkin’s retail anywhere from $10,400 to $2 million in US stores.
In his video, he provides a step-by-step guide of making a Birkin.
He states: “This Birkin bag at Hermes boutique will cost you $38,000. But what is the real cost out of the factory? Welcome to the real world”.
As the video proceeds, he explains different structural elements of the bag, how much each piece typically costs and the manpower involved. He explains that to finish one bag, the resource cost is $600, totalling at $1450.
“But why does Hermes charge you $38,000 per bag? That’s because more than 90 per cent of its price is paid for its logo,” he said.
“But if you don’t care about the logo and just want the same quality, same material, you can just buy from us. because for our bags we use exactly the same material. From our factory, it only costs $1000.”
Truth or Scam? Or both?
Lululemon and Louis Vuitton are also prominent in the viral videos of Chinese workers claiming to have access to the very factories, materials and production lines that belong to those brands.
They also claim that they can sell essentially the exact same product, possibly sans logo, for as little as $5 per piece.
However, many fashion industry experts say these are false claims and are simply scams trying to lure shoppers into purchasing low-quality, knock-off goods.
”They’re trying to conflate the fake manufacturers in China with the real manufacturers. They are very clever with social media and they’re very effective at driving demand in the West” —Conrad Quilty-Harper, Author of Dark Luxury.
There are strong arguments for both sides and there is surely truth in each.
China is considered the epicentre of the global counterfeit industry. $1.8 billion in counterfeit goods were seized as US customs in 2023 alone.
At the same time, it is no secret that big brands and megacorps, like Nike and Dior (owned by LVMH), exploit looser labour regulations in China as well as other countries.
Values & Ethics vs Glitz & Glamour
This topic sheds a lot of light on our understanding and value of luxury brands: Why we desire them and what the true human cost (not to mention environmental) of purchasing them is—behind the veil of glitz and glamour.
It’s completely human to be attracted to beauty and the social reward that comes with luxury. At the same time, we must take into account the harsh reality behind what fuels consumer culture.
And that reality is that it is more often than not rooted in the suffering of factory workers, exploited animals and the environment.
If you want to learn more about the ethics of popular brands and discover lesser-known ones, we recommend visiting the website for Good on You.
It is an Australian company with a mission to “use the power of people’s choices to drive a sustainable future.”
It aims “to make sustainable shopping easy for millions of people around the world by being the best, most trusted source for brand ratings, articles and expertise on more sustainable fashion and beauty.”
Their website and online app offer a vast catalogue of different brands and companies, providing each a score based on the transparency of their business practices and sustainability efforts.
At the end of the day, assess your values and consider how and where you can practice them more through your choices as a consumer.
