‘Made in China’: the hidden side of the luxury industry

When we look at the universe of major luxury brands and the prestige that accompanies them, it is almost impossible to imagine that behind a ten thousand dollar handbag lies a reality that underscores the dependency of the luxury industry on Chinese production.

With viral videos, manufacturers from China are exposing the hidden productions of this system — revealing that much of what is sold as 'Made in Italy' originates from Asian assembly lines, with the same labor and materials used to create sophisticated copies. This movement not only exposes the fragility of the exclusivity narrative but also reignites a debate about the true value of luxury.

With the gradual escalation of the trade war between the U.S. and China, luxury brands have become thematic targets for Chinese manufacturers — who now flood social media with videos showcasing the production of their pieces. In retaliation to the tariffs imposed by Trump, the posted videos reveal how many brands rely on Chinese manufacturing and cheap labor to produce their products, as well as highlight a consumer incentive to buy directly from their factories.

The current scenario is marked by Trump's imposition of a 145% tariff on all imported products from China. In response to the sudden U.S. government action, China imposed a 125% tariff. At this moment, the Asian country is pressuring Washington to cancel their decision, claiming the practice of reciprocal tariffs is unfair.

"We urge the U.S. to take a significant step to correct its mistakes, completely cancel the misguided practice of 'reciprocal tariffs' and return to the path of mutual respect," stated the Chinese Ministry of Commerce in an official note. This statement highlighted the country's concern regarding U.S. positions, after Trump announced a 90-day pause on tariffs during his speech on Liberation Day, on April 2. The speech focused not only on the resumption of decision-making but also on reconsidering the progression of these trade transactions. Furthermore, last Friday, Trump's administration also announced exemptions for some electronic products — including those manufactured in China — and stated that it is preparing to introduce a separate "semiconductor tariff", which will be announced in the future.

Regarding the exposed content, the most shared video was from @bagbestie1, a Chinese citizen who owns a factory (which was not identified) that claims to have supplied various European luxury brands for 30 years. On his profile, in addition to still being able to see the videos in question, there is also an identical profile called @senbags2, where another man talks about the workings of Chinese factories, as well as asserts the production of bags for major brands.

During his speech, he also highlights that the pieces developed are sent to Europe, where they receive the "Made in Italy" label, countering the supposed truth that all luxury is European, while in reality, it is secretly "Made in China." In addition, the Chinese man discusses the promotion of sophisticated copies of Hermès bags, showing lists of costs and materials used to manufacture the famous Birkin bag.

This was not an isolated case, of course. Various Chinese suppliers and manufacturers responsible for producing luxury brands have turned to media to showcase the artisanal skill of their teams and offer direct consumer sales at prices cheaper than retail. Among the designs available for purchase, Hermès, Louis Vuitton, Chanel, Estée Lauder, and Bobbi Brown stand out.

One of the major brands, namely Chanel, inadvertently propelled the whole discussion after a post on their social media — a video showing the assembly process of their bags, which, in turn, were not made entirely by hand, but by machines. The video shocked some of its consumers and admirers of the brand, who expressed their indignation upon seeing a bag valued at ten thousand dollars — have a production line made with very industrialized processes.

This uproar highlighted not only the industrial aspect but also considerations and questioning of what is considered luxury. The question posed to Chanel stood out in this way: how can a high-end product have so many industrial processes, when the metrics established to justify prices emphasize the quality of materials, brand value, craftsmanship, and especially this issue — the manual execution of products.

The videos accumulate millions of views, showing factory workers detailing materials such as leather, as well as manual sewing techniques and the production lines used in the manufacturing of products. The reality they portray shows the discrepancy regarding product pricing, which is generally above five digits.

"They are the same materials, the same hands, just without the brand," said a seller. Luxury brands may call this piracy. But consumers are calling it "capitalism at its peak," stated one of the suppliers. Some suppliers claim that the real cost of a Birkin bag priced at $34,000 is, in fact, about $1,400. According to them, the value of the iconic bag is more associated with the power of the brand than with the handmade labor involved. The question now is that many of these suppliers are offering the same product (without the logo) for a tenth of the original price, with some even offering the possibility of free international shipping and exemption from import taxes.

When we consider the weight of global trade in relation to China's participation, it is clear to see its importance as the world's largest exporter, supplying not only markets but also electronics, clothing, toys, automobiles, and machines across all continents. But it is not just a supplier: it is also one of the largest consumer markets on the planet. With over 1.4 billion inhabitants, China offers a huge consumer market, attracting international brands that compete fiercely for the attention and purchasing power of the population.

The Chinese influence also extends to investments and geopolitics. The Chinese government and companies invest in infrastructure, energy, and technology in countries across all continents, expanding their presence and influence through projects such as the Belt and Road Initiative. At the same time, China has a significant influence on global commodity prices, as variations in its internal demand can significantly raise or lower the values of products such as soybeans, oil, and iron ore.

Given all this, it is evident that the world economy is strongly intertwined with China — and any movement in the Chinese market resonates immediately and even indirectly around the globe.

In this context, nationalism in the country has gained strength, and as an example, one of the titles of one of the most viewed videos from LunaSourcing, with 2.9 million views, is "Name one thing that China CANNOT do," highlighting the persistence of the Chinese voice in emphasizing the extremely high quality that the factories in the country are capable of providing.

What is clear is the technical precision of the videos, which is accompanied by a massive discourse filled with quick and creative strategies, showing not only the reasons the world cannot function without Chinese production, but also further undermining the confidence of Western consumers.

All this happens in a scenario marked by the trade war between the United States and China, in which the Chinese government even threatened to suspend exports of rare earth elements and semiconductors — essential elements for the manufacture of computers and weaponry. Meanwhile, China, on the other hand, has been strengthening its relations and trade agreements with South Korea and Japan, alongside starting small dialogues with Europe to demonstrate its role in global trade.

The reason in question is that the luxury sector is being directly affected, and it seems that luxury brands are remaining reticent regarding this issue. However, considering that the uncommon hashtag #chinesemanufacturers already has 74 million views — and #chinasourcing, an impressive 157 million — a possible reckoning seems increasingly inevitable.