From factory to feed: How TikTok is 'exposing' the pricey illusion of luxury brands

In the latest twist in the US–China tariff war, Chinese manufacturers are turning to TikTok to do more than vent frustrations — they're blowing the lid off the luxury fashion industry.

By claiming to showcase the origins of high-end goods and their true manufacturing costs, these manufacturers are upending the glossy illusion of luxury pricing, sparking a growing wave of consumer doubt and demand for cheaper alternatives.

Armed with smartphones and access to mass production lines, some Chinese suppliers are now revealing just how little it costs to make products that are later sold at enormous markups under luxury brand names.

Viral videos show handbags, yoga leggings, and other high-end goods being produced in factories and packaged with care, sometimes for less than $30, only to be resold for hundreds, if not thousands, in Western markets.

One bag that looks nearly identical to a Hermès Birkin reportedly costs around $45 to produce. The real thing? Prices start at $10,000 and can go up to $300,000 depending on exclusivity.

A key reason, one of the manufacturers explained, is just the logo. No logo will cost less than $1000. With the logo and the prices skyrocket.

The rise of 'factory direct' shopping

The exposé videos have given rise to a new kind of online shopping experience.

Users are skipping the brands and sourcing directly from manufacturers offering "dupes" or "unbranded originals" — items produced in the same factories or by the same workers who make goods for luxury labels.

Platforms like TikTok Shop and Chinese e-commerce sites are helping these businesses connect with buyers globally.

Items like Lululemon-style leggings, sold in the US for upwards of $100, are now available for as little as $10–$15 from Chinese sellers.

Similarly, Birkenstock-inspired sandals — retailing around $120 in the West — are popping up online for under $20.

The appeal is undeniable. With economies squeezed by inflation and incomes stagnating, especially among younger consumers, price transparency has become a quiet rebellion against luxury markups.

In a post-pandemic world that increasingly values authenticity and affordability, this shift is not just about price — it's about principle as well.

Chinese Tiktokers are now also giving website links to order from and people are flocking, albeit some criticism.

One reddit user, scarletofmagic, pointed out there was more to the trend than just a tariff war.

"These factories are not producing the real, authentic products. They are not Hermes or LV or even Gucci factories, they are using the tariffs to scam people. These counterfeits and replicas talk have been around since forever in countries which are infested with them like SEA, Indian, etc. It's just the sellers tell you they are "leak", "faulty" products from the factory when they are indeed fakes."

The user pointed out that counterfeits had always been around, but Westerners were only being exposed to it on such a massive scale, calling the entire thing a scam.

Others said the real scam was being run by the luxury brands, not the manufacturers.

The murky truth behind the 'Made in' label

The reality behind luxury labels is more complex than it appears.

"It's neither a clear yes, nor a clear no," Regina Frei, professor at the University of the Arts London, told CNN when asked if expensive handbags and watches are made in China.

Often, parts like watch hardware or bag components are preassembled in China and then finished in Europe.

"If you talk about very expensive handbags that involve a lot of manual work, they will probably be preassembled somewhere, and then they will be finalised, say, in France," she added.

Even factories in Italy or Switzerland may have links to China, whether through management, ownership, or components sourced from Chinese suppliers.

This deliberate ambiguity allows brands to maintain the allure of European craftsmanship while quietly benefiting from China's cost-efficient manufacturing.

Despite their origins, buying directly from TikTok sellers comes with no warranties or quality assurance, and looming US tariffs could soon make those cheap deals more expensive.

Luxury brands on the defensive

The luxury industry, however, sees this as a threat to both brand identity and consumer trust. Many have accused these TikTok "wholesale finds" of being fakes.

A recent Forbes article warned that some of the products circulating online may be knockoffs, not officially tied to the brands they mimic, even if they appear to be made in the same region, or by the same labour.

Yet others argue that the distinction between "fake" and "factory-made" is becoming increasingly blurry. After all, when a luxury bag and its $45 dupe are made side-by-side in neighbouring factories, sometimes with the same materials and techniques, what are consumers really paying for?

This movement comes at a time when Chinese consumers themselves are also pushing back against Western brand dominance. As NPR noted, a younger generation is embracing national pride and questioning why foreign logos are needed to validate quality.

For international consumers, especially Gen Z, this exposure has sparked a reckoning. Many are now questioning the value of luxury branding itself.

Is a logo worth a thousand-dollar markup? Or has the trade war simply peeled back the final layer of an industry built on image rather than cost?

While luxury brands continue to justify their pricing through claims of craftsmanship, heritage, and exclusivity, TikTok is offering something far more disruptive: radical transparency. And for a generation raised on social media and price-conscious shopping, that may be the most luxurious thing of all.