TikTok is becoming the breeding ground for videos that accuse luxurious brands of producing their high-end products covertly in China, with the aim of selling them at reduced rates. However, these allegations are mostly unfounded and tend to obscure the underlying issue of a flourishing black-market for fake merchandise, which is largely exploiting the ambiguity brought about by trade tariffs. The individuals making these accusations often present themselves as factory workers or business liaisons within the luxury product realm, suggesting that Chinese authorities have abandoned non-disclosure agreements with domestic enterprises to counter United States President Donald Trump’s significant increase in custom duty.
These self-proclaimed insiders argue that the new directive from the Chinese government allows them to expose the unseen aspects of luxury goods production in China. They sway Western buyers to procure directly from web-based platforms that sell these items, which supposedly, do not show any distinctive logos or labels, but promise equivalence in quality to their costly counterparts. The price difference is decidedly enticing, with luxury bags that usually cost $38,000 being offered for just $1,400.
Noteworthy brands on the alleged list include Hermes, Chanel, and Louis Vuitton, with their goods declared as made in Europe and the United States on official websites – however, these companies have refrained from commenting regarding the accusations proliferated in such viral videos. In opposition to these claims, Jacques Carles, who presides over the French Luxury and Design Centre, which offers management consultancy and services, dismisses the idea of luxury brands outsourcing production to China as nothing short of ‘ridiculous’.
‘It would be fatal. If there was any substantial proof – which there isn’t – it would spell their doom. These brands aren’t mindless,’ he pronounced. While TikTok creators commended the dexterity of the Chinese craftspeople, often painted as anonymous craftsmen behind the famous luxury brands, ‘these bootlegging workshops are far from adhering to the mandatory steps of the manufacturing process,’ Carles emphasised.
To put this into perspective, Carles used the hallmark Hermes’s Birkin bag as an example. The iconic bag necessitates ‘hundreds of hours of meticulous craftsmanship.’ He believes that these virtual content producers, by instilling uncertainty, are actually creating an opportunity ‘to offload their stocks’ of imitation merchandise. ‘Countering a viral campaign on social platforms is a rather tricky affair,’ he remarked.
But instead of countering these allegations, luxury brands have decided to adopt a silent strategy against the mud-slinging and choose to ‘treat the matter with disdain’. Carles rubbishes the suggestion that luxury goods, claimed to be manufactured in Europe, are secretly being produced in China. He characterizes such accusations as nonsensical and dismisses the notion that this is a response from China to the strain of US trade sanctions.
‘It’s ludicrous to assume that inflicting harm upon European luxury brands will alter anything for the US government, as they have no affiliation with these brands,’ Carles pointed out. He categorically debunked the claims erupting online, asserting that luxury brands produce their goods in China and then falsely label them ‘Made in France’ before releasing them to the market.
The very idea of this is utter ‘nonsense,’ as it’s against the law and no brand would dare to run the risk of being apprehended conducting such an act. China’s trade ministry’s e-commerce division issued a clarifying statement, condemning ‘any deceptive marketing, infringement, or counterfeiting activities’ by entities that pose as offshoots for distinguished brands. Any such cases ‘will be promptly referred to law enforcement agencies for investigation and appropriate measures.’
Global perception is notably tilted against China, by continuously accusing it of being the paramount producer of counterfeit products. Some approximations indicate that 70 to 80 per cent of all bogus items are manufactured within its borders. In countries such as the European Union member states, and several others, there are severe punishments enforced on the purchase and possession of fake merchandise.
In France, for instance, individuals involved in such dealings could face a jail sentence of up to three years and a substantial fine of 300,000 euros ($340,600). Customs officials may also seize the imitation articles and impose a penalty equivalent to the original item’s worth.
According to the European Union Intellectual Property Office (EUIPO), the counterfeit market impose a cost on the European industry to the tune of 16 billion euros annually. The industries most heavily impacted by fraudulent imitation products include the apparel, cosmetics and toy sectors, where substantial losses are incurred.