Chinese suppliers have been flooding social media, asking American consumers to buy luxury brands directly from them as the tariff war between the U.S. and China ramps up.
Many videos trending online allege that the clothes and other items sold by high-end brands are originally made in Chinese factories at a fraction of the cost they are later sold for.
In one TikTok video, which has since been taken down by the app, a user named Wang Sen claims he is the original equipment manufacturer for luxury brands, while standing in front of what appears to be a wall of Birkin bags.
“Why don’t you just contact us and buy from us? You won’t believe the prices we (will) give you,” he says in one clip.
These videos claim the luxury products are made in China, then transported to regions like Europe and the U.S. where they are relabelled.
How dependable are these TikToks?
Experts told CTVNews.ca that it is highly improbable that these items touted to be “luxury” are the real deal.
Regina Frei, professor of sustainable and circular systems at University of the Arts London, told CTVNews.ca that although some brands do source materials from China, where they complete the pre-production of these items, these TikTok items are “highly unlikely” to be authentic.
Legitimate manufacturers must sign non-disclosure agreements when they are hired, so it’s highly unlikely that these creators are trying to sell the authentic items, experts say.
An operation, supply chain management and project management researcher shared Frei’s sentiment.
“I don’t think any international contract for the big brand allows suppliers to do so. From the supplier’s perspective, not only the legal consequences, but they would be afraid that if they do such things, they will lose their contract, especially under the current economy,” Hao Dong, who is also a senior lecturer of management at the University of Southampton, told CTVNews.ca.
Frei says it doesn’t make sense that these manufacturers would put their long-term, high-volume contracts with the brands in the crosshairs just to sell a few items on TikTok.
Meanwhile, she says, there’s another element to this situation: overproduction.
This can lead to the sale of items that are “faulty” in markets where tourists and locals can buy them for a discounted rate.
These items have some production defects and cannot be sold at the high-end brand stores, she says.
“China is very well known for fakes and some really good fakes as well. Fakes that… unless you’re an absolute expert, you cannot distinguish,” she said.
“But they’re still fakes in the sense that they don’t come from the factory or the brand, and it ends their designated suppliers.”
These items are not up to the luxury brand’s standards of quality, equipment and manufacturing, she says.
“No way they can do still hold up to that high quality standard, because that’s high failure rates, which translates into high costs while they are selling at a very low price. Which doesn’t make much sense,” Dong said.
Most of the world’s clothing is generally made in China, executive director of Fashion Revolution Sarah Jay told CTVNews.ca.
“It has the hugest garment labour force. And there’s a misconception generally that the Big Four (cities) – London, New York, Paris, Milan – are the fashion capitals of the world, but this trend points to the true fashion capital of the world,” she said.
She noted that luxury brands often mark up products significantly, selling goods at inflated prices. However, the concept of “luxury” is changing, with emphasis on quality of materials and fair labour practices, which can be among the reasons behind the costs of luxury goods.
Consumerism the real issue: sustainability expert
The reason that so many people are fascinated by the TikTok videos is because they seem “almost too good to be true,” Frei said.
She says the real problem is people wanting to buy things for a cheaper cost, ordering from discount websites like Temu and Shein without considering the environmental impact.
It’s not something that has happened overnight, she says. This culture has existed for decades and has just gained popularity on social media amid sweeping tariffs and cost-of-living challenges.
“The internet is just giving people a new platform,” Frei said.
People are always trying to find new ways to sell products and persuade consumers, she explained. Dong said the industry is partially to blame.
“This nature of the industry allows that, and clothing is essential. People buy it every day now, especially with the cheap prices and the convenience of having delivered to your door,” Dong said.
Different countries have different rules and regulations when it comes to declaring that a product is made in a particular country, the experts say.
“For instance, to be able to claim it’s made in Italy or in the U.S., you need to have mostly materials from that country, and most of the work will have to have been done in that country,” Frei said.
Other countries are more lenient with the proportion of the work and value addition that must have occurred within its borders, according to her.
What is interesting is that an increasing percentage of consumers now are aware about sustainable, ethical and fair trade, she said.
The Trump Administration has signalled that it is looking to de-escalate the tariff war between the world’s two largest economies, which has affected the trade between the U.S. and China and raised fear of a global recession.
“The tariff war is going to make already vulnerable members in the global supply chain increasingly vulnerable,” Jay said.
China has since exempted some U.S. imports from its 125 per cent tariffs. China’s economy relies on the U.S. for key imports that are needed to make plastics and some drugs.
With files from Reuters.
