The ongoing trade war between the US and China has now taken a new and interesting turn. When US President Donald Trump imposed a 145% tariff on Chinese goods, China also retaliated with a 125% tariff in response. But China did not stop here. It made TikTok a weapon and made such a move that luxury brands lost their sleep. Chinese TikTok users are now making videos and telling that the products of big brands like Gucci, Dior, Versace are actually made in factories in China. Not only this, these people are now talking about selling cheap copies of these products directly to the customers.
In a video on TikTok, a Chinese man proudly said, "For the last 30 years, our factories make goods for luxury brands. But we only get wages, the brands take the profit." He said that Chinese factories procure leather, zippers, everything immediately, and such quality and speed is not available in other countries. He joked, "Luxury brands tried to leave China, but failed. Now buy goods directly from us!"
Another TikTok user exposed Dior's supply chain. He said that Dior's sweaters and cardigans come from Hangzhou's Beyond Garments, which also supplies Sandro, Maje and Versace.
Another video mentioned cosmetics, where it was revealed that Dior, Lancome and L'Oreal are produced by Thai Ho Group.
These videos are not just limited to exposing. Chinese users are telling that the same products, which are called “first copy”, are available at very cheap prices. These copies are made from the same material and factory that is used for the original products.
One user said, “Luxury brands will hate me, but this is the truth.” Earlier these factories used to remain silent, but the trade war gave them a chance to speak openly. Now these people are talking about selling goods directly to the customers, due to which the profits of luxury brands are in danger.
Earlier also everyone knew that China is a hub of luxury brands due to cheap labor. But now China has made it a weapon instead of hiding it. These videos on TikTok are not only exposing the truth of the brands, but are also creating a stir in the market by selling “first copy” at cheap prices.
This move by China can become a problem for luxury brands, because customers are now raising questions that when the product is the same, then why is it so expensive? On the other hand, China can also suffer losses, because brands can move their factories elsewhere. This trade war has now gone beyond tariffs and has become a war of zippers, clothes and TikTok.
