Chinese manufacturers expose luxury brands’ production secrets

Chinese manufacturers and content creators are pulling back the curtain on the luxury fashion industry, revealing that many high-end products from renowned brands are produced in China at a fraction of their retail price before being sold with European labels.

The viral TikTok trend is challenging consumer perceptions about luxury goods, showing that items from prestigious labels including Gucci, Prada, Chanel, Fendi, Hermès… are often manufactured in Chinese factories before receiving “Made in France” or “Made in Italy” tags, reports the news outlet Morocco World News.

“China’s showing that 80% of anything you buy that’s Gucci is made in China, that over 60% of what you buy from Prada is made in China,” noted one TikToker. “It’s like pulling the curtain back in The Wizard of Oz and realizing there’s no real magic behind the person running the show.”

This revelation comes amid significant shifts in the $380 billion global luxury market, which experienced a 2% decline in 2024, partly due to changing Chinese consumer behavior. According to CNBC, China’s contribution to global luxury sales has plummeted from 50% a decade ago to just 12% today as post-pandemic economic challenges and rising nationalism drive younger shoppers toward domestic brands offering similar quality at lower prices.

The timing is particularly significant given recent U.S.-China trade tensions. President Trump’s administration recently imposed steep tariffs of up to 145% on Chinese imports, though electronics received an exemption following pressure from tech companies.

Labor costs remain a key factor in China’s manufacturing advantage. The Apollo Academy reports that manufacturing wages in China are approximately 20% of those in the United States, while working conditions often fall below Western standards.

As Chinese content creators continue exposing the realities behind luxury pricing, consumers worldwide are increasingly questioning whether premium brands will maintain their perceived value or if Western consumerism is beginning to lose its grip on global markets.