Home Estate Planning Chinese TikTokers spark debate on source of luxury goods as they fight tariffs

Chinese TikTokers spark debate on source of luxury goods as they fight tariffs

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A debate over the source of luxury goods has taken TikTok by storm after Chinese manufacturers jumped on the app to ‘lift the veil’ on luxury production.

According to multiple hugely popular videos on the social networking site – notably a user called @senbags2 – luxury goods are made in China, then shipped to Italy for boxing or a logo to earn the accolade ‘Made in Italy’.

Speakers stand in front of rows of Hermes, Chanel and Gucci bags, asking watchers: Why not buy from us directly?

The videos have generated millions of views across TikTok, Instagram and X.

The debate has been construed by commentators on the app as an attempt by Chinese manufacturers to profit from tariff uncertainty by cutting out the middleman and offering lower prices for ‘luxury’ goods.

“I love that the Chinese manufacturers are coming on here and asserting that they are producing these luxury bags and luxury goods,” user Shelby Ivey Chrstie said, also pointing out the unknown role of African sourcing in the process.

The videos by Chinese manufacturers have sparked a huge debate online, with many questioning the value of luxury goods and pledging to buy them from wholesale – or dupe – sites like DHGate instead.

Many have also pointed out that Westerners can be unfairly derisory of China-made goods.

A popular video starts with the line: “Some say, as long as there’s a tag saying ‘Made in China’, the bag can never be luxury,” and goes on to claim that more than 80 per cent of luxury bags in the world are made in China.

But how much truth is there in these claims? Are luxury goods really quietly made in China?

According to the brands themselves, no.

Hermes, for example – which videos call out as a key offender – employs no staff in China, according to its financial statements.

Around two thirds of its staff are employed in France, with the remainder in European countries like Italy, Switzerland and Spain.

That’s not to say none of its supply chain is in China: it openly sources cotton from Inner Mongolia, for example.

Chanel – which was trending earlier on Monday on the app – too, sources silk from Fenggu and Antai in China, but produces goods at key factories in France and Italy.

Birkenstocks, another popular target, are made in Germany at the company’s own production facilities, employing around 5,500 staff.

The finished products touted online by manufacturers are more likely to be straightforward dupes or counterfeit goods, designed to appeal to Americans concerned that the prices of luxury products will rise due to tariffs.

Dupes are slightly different to counterfeit goods in that dupes do not contain the brand’s logo but do have the same design, while counterfeit products are made to look identical.

DHgate, which has emerged as a key place to buy cheap luxury goods, was described by the United States Trade Representative in its 2024 Review of Notorious Markets for Counterfeiting and Piracy as containing ‘a high volume of counterfeits’ on its site.

Many luxury brands do have problems with their supply chains – but they’re problems in Europe.

The fourth edition of BHRRC’s KnowTheChain Apparel and Footwear Benchmark found that luxury brands were failing to protect workers int heir supply chains.

Áine Clarke, head of KnowTheChain, told Vogue that luxury brands have tried to drive down prices and increase production volumes, putting pressure on workers.

Last year, Dior and Armani were both investigated by Italy’s competition watchdog for unfair commercial practices over allegations they used suppliers that underpaid and overworked their staff in their Italian factories.

Both brands were separately placed under judicial administration earlier in the year due to concerns over labour law violation by subcontractors, although both companies denied wrongdoing.

A BBC investigation similarly found that Lancôme used minors to pick jasmine for its perfumes.

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