As a fallout of the US's trade war with China--during which US president Donald Trump has been urging companies to manufacture in the country--Chinese suppliers have taken to social media to reveal how they manufacture products for top luxury brands such as Birkin, Louis Vuitton, Chanel, Estee Lauder, and Bobbi Brown and are offering to sell directly to consumers at one tenth the marked price, and sometimes even lower.
X has been flooded with videos of several such Chinese suppliers detailing the high-quality materials and highly skilled labour they use to produce the luxury items, explaining the cost break-up before offering to sell the products without the brands' logos.
The videos appear to be a concerted attack by China, aimed at huring the businesses of leading American luxury brands amid the ongoing trade tussle with Trump.
A supplier who makes bags for Birkin said that the cost price of models that sell for $34,000 (about Rs 29 lakh) are actually as low as $1,400 (Rs 1.2 lakh). He added that the bag makers get a very low profit margin, while the majority is pocketed by the brands for their logos.
Some of the Chinese suppliers also offer to cover the import duties and provide free shipping. The videos have added fuel to the fiery discussions on social media that the US cannot win the trade war against China.
Some of the viral videos also showcase the manufacturing process in Chinese factories to dispel the myth that products made in China are of poor quality and are, hence, available at low prices.
The videos have raked in millions of views.
The US tariff on Chinese goods currently stands at a whopping 145 percent, with Beijing showing little inclination to back down by increasing its own retaliatory duties to 125 percent. Instead of attempting to make peace with Trump, China has pursued an alternative strategy, prioritising internal reforms and expanding its economic partnerships globally.
The move falls in line with Beijing’s vow to “fight to the end” after Trump’s tariffs targeted the country. Chinese President Xi Jinping has also called out the “unilateral bullying” by the US--a sentiment echoed by his ministers--and has declared that they are not inclined to give in to a bully's demands.
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