Luxury fashion accused of 'made in China', exploiting cheap labor, pushing prices sky high

As US-China trade tensions escalate, a new wave is emerging on Chinese TikTok, making a series of accusations about the truth behind luxury goods labeled as Western.

Luxury fashion is facing consumers because of the "Made in China" label - Photo: Vogue

According to Morocco World News, these videos are removing the glitz, opening up a different perspective for consumers about the reality of the origin and true value of expensive fashion items.

They share a behind-the-scenes look at the luxury industry: many products from major fashion houses are manufactured in China at low cost, then sold in the US and other markets at sky-high prices.

Brands such as Gucci, Fendi, Prada, Chanel, Hermès, Louis Vuitton and even expensive Birkin bags are no exception when it comes to allegations that important steps in their production process are done in China.

Luxury fashion in turmoil over 'Made in China' accusations

A video from the TikTok account senbags2 caused a stir, attracting more than 10 million views. In it, a Chinese factory worker shared: “For more than 30 years, we have been an OEM (Original Equipment Manufacturer - referring to companies specializing in manufacturing goods for other brands to brand) for most luxury brands from Gucci, Prada to Louis Vuitton.

The bags are almost completely made in China, then just the logo is pasted on and repackaged elsewhere. I am not proud of the low wages we receive, but I am proud of the craftsmanship, quality control and complete supply chain in China."

Chinese TikTokers race to expose luxury brands - Photo: The Straits Times

Faced with the wave of “decoupling” from China from the US and Europe, luxury brands have tried to move factories elsewhere, but failed.

“OEM factories outside China do not meet quality standards, have high labor costs or inefficient workers, and do not have a synchronized supply chain system like in China.

Therefore, we are always the best partner for manufacturing branded goods. So why don't customers buy directly from us for convenience?" - TikToker concluded provocatively.

TikTokers said that Gucci, Prada, Louis Vuitton, Chanel, Fendi, Hermès... are said to be produced in Europe, but in fact most of them are processed in China - Photo: Fashion Sizzle

Another TikToker commented that luxury fashion is not only a symbol of class, but also a sophisticated soft power tool.

Western dominance in popular culture – from Hollywood movies, to chart-dominating music , to lavish image-building strategies – has created an illusion of inherent superiority for “made in the West” goods.

"80% of Gucci products, more than 60% of Prada products are made in China. The only difference is that they are shipped to Europe and then sewn with a label 'Made in France' or 'Made in Italy'. It's like pulling back the curtain in The Wizard of Oz and realizing there is no magic," said a viral video.

Consumers are now forced to ask themselves: where does the real value of luxury goods lie? Are they just paying for the label and not the quality? - Photo: Dialogue Pakistan

According to 2024 data from Apollo Academy, the average manufacturing wage in China is only about 20% of that in the US. In India, the figure is even lower, at about 3%.

Chinese workers say they suffer the most: working for wages that are not enough to live on, while businessmen reap huge profits from a global sweatshop model.

Now, they are using TikTok as a tool to speak out, demanding not only fair pay, but also recognition for their superior craftsmanship and production capabilities.

In the face of accusations from TikTokers and Chinese people, luxury fashion houses have yet to speak out about the incident. However, this has also partly made consumers hesitant and hesitant when buying luxury goods.

Not the first time being accused

Even before TikTok made the topic popular, several major fashion houses were caught up in legal investigations in Italy for mislabeling the origin of their products, The Print reported.

In June 2024, Dior was embroiled in controversy, while Louis Vuitton and Armani were investigated for alleged labor exploitation at Chinese-run factories.

When the truth about the origin of a product is revealed, luxury goods are no longer a symbol of sophistication, but become proof of the buyer's naivety - Photo: Fortune

That same month, a Milan court ordered the LVMH-owned Christian Dior brand to be placed under judicial supervision for a year after finding that two subcontractors near Milan – both Chinese-owned – had engaged in serious labor abuses.

Although Dior was not prosecuted, the court found that the brand had failed to adequately monitor the working conditions and reputation of its manufacturing partners.

The investigation also revealed many shocking details: workers were forced to sleep at the factory to maintain 24/7 production, safety systems were disabled, undocumented labor was used, and there were absolutely no formal labor contracts.

Consumer Awakening

Besides low production costs and large-scale production capabilities, the rise of a new consumer mindset in China is also shaking up the global luxury industry.

According to CNBC , by 2024, the $380 billion global luxury market will see a 2% decline, largely due to fluctuations in the Chinese market - which used to account for half of global luxury consumption. Now, that number is only 12%.

The report points out that it is not just the post-COVID-19 and rising unemployment rates, but the change in the mindset of young people that is the underlying cause. Young people increasingly prefer "experiences and memories" over "status and material things".

More importantly, a wave of “new nationalism” is driving consumers to turn away from European brands and favor domestic products – which are of comparable quality but much cheaper.

REVELATION

Source: https://tuoitre.vn/thoi-trang-xa-xi-bi-to-made-in-china-boc-lot-lao-dong-gia-re-day-gia-tren-troi-20250624121212503.htm