What happened : As a part of its counter-response to rising US tariffs, China (China Exposes) has begun revealing how global luxury brands rely heavily on Chinese manufacturing—despite marketing their products as “Made in Europe.” This move is exposing long-hidden practices in the high-end fashion industry.
Why it matters:
This strategy by China could tarnish the image of global luxury brands like Louis Vuitton and Gucci, which often charge premium prices based on their European craftsmanship and exclusivity.
Key details:
- Many luxury handbags are primarily manufactured in China and then sent to Italy or France for minor finishing. This allows brands to legally label them as “Made in Italy” or “Made in France.”
- Chinese platforms like Dewu (Poizon) are thriving by selling the same luxury goods—authentic but often cheaper—bypassing official brand channels.
- Sales on Dewu have in some cases surpassed those on platforms like Tmall, showing how price-conscious and informed Chinese consumers are becoming.
- This exposure challenges the traditional luxury pricing model and the illusion of European exclusivity.
Impact on brands:
5Major brands like LVMH and Kering are facing pressure to justify their high price tags as more consumers become aware of where and how luxury items are truly made.Big picture:
By shedding light on the real manufacturing sources and fueling a parallel luxury market, China is pushing back against US trade pressures (China Exposes)—not just economically, but by changing consumer behavior and industry transparency on a global scale.