BUSINESS

Viral Videos Promising Dirt-Cheap Luxury Goods Spark Doubts

By Feng Yiming, Qu Yunxu and Wang Xintong

Published: Apr. 23, 2025 7:29 p.m. GMT+8

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One typical video featured a user going by the name Wang Sen, who claimed that he was a contract manufacturer for major luxury brands like Gucci and Prada. Photo: Screenshot from TikTok user wangsen99998

A wave of viral videos claiming Chinese factories can supply customers with branded luxury goods — from handbags to apparel — at a fraction of their retail prices has ignited debate over the authenticity of these claims.

One typical TikTok video featured a user going by the name Wang Sen, who claimed that he was a contract manufacturer for major luxury brands like Gucci and Prada. Wang claimed that “more than 80% of luxury bags in the world are made in China,” and that a Hermès Birkin bag, which retails for at least $38,000, costs just $1,400 to make. Wang suggested customers could buy bags of equal quality directly from his factory. The video garnered millions of views before being taken down.

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Viral videos claim Chinese factories can produce branded luxury goods at much lower prices and similar quality, but industry insiders dispute their authenticity.
Major brands like Hermès, Louis Vuitton, and Chanel state most production occurs in Europe and the U.S., with strict supply chain controls and limited Chinese involvement.
Experts suggest these videos likely promote counterfeits, as legitimate Chinese factories rarely produce top-tier luxury goods and lack intellectual property rights.

AI generated, for reference only

Who’s Who

Gucci: According to the article, a TikTok user named Wang Sen claimed to be a contract manufacturer for major luxury brands, including Gucci, and stated that many luxury bags are made in China at much lower costs. However, the article casts doubt on these claims, noting that luxury brands like Gucci maintain strict control over their supply chains and rarely produce bags in large-scale Chinese factories, focusing such production mainly in Europe and the U.S.

Prada: According to the article, Prada does utilize manufacturers in Dongguan, China, unlike luxury brands such as Hermès and Chanel, which have never produced bags in China’s large-scale contract factories. However, only a few established Chinese firms are involved in luxury handbag manufacturing, and the majority of luxury brands’ production facilities are located in Europe and the U.S.

Hermès: According to the article, Hermès states on its official website that the majority of its production facilities are located in Europe and the U.S. An industry insider also said Hermès bags are not produced in large-scale contract factories in China. Furthermore, the supply chain for luxury bag raw materials like leather is still heavily reliant on European suppliers, reinforcing Hermès’ commitment to quality and authenticity outside China.

Lululemon: The article mentions Lululemon as one of the luxury brands referenced in viral videos claiming that Chinese factories can supply branded goods at much lower prices. However, there is no evidence presented that Lululemon products are manufactured in China in a way that supports these claims. Industry insiders express doubt about the authenticity of such offers and stress that legitimate partnerships are unlikely to risk supplying individual retail customers directly.

Nike: The article mentions that some viral videos claim Chinese factories can supply branded goods, including those from Nike, at much lower prices. However, apparel industry insiders cast doubt on these claims, suggesting they are likely high-quality counterfeits rather than genuine products made in legitimate contract factories that supply major brands like Nike.

Louis Vuitton: The article states that Louis Vuitton has claimed, via its official website, that the majority of its production facilities are located in Europe and the U.S. It also says that handbags undergo strict supply chain controls and are not produced in China’s large-scale contract factories. While some Chinese firms manufacture for certain brands, this mostly applies to more accessible labels, not to Louis Vuitton.

Chanel: According to the article, Chanel has stated on its official website that the majority of its production facilities are located in Europe and the U.S. Industry insiders also report that Chanel bags have never been produced in China’s large-scale contract factories. Additionally, Chanel employs rigorous supply chain management and factory audits to maintain product authenticity and quality control.

Sitoy Group Holdings Ltd.: Sitoy Group Holdings Ltd. is a Hong Kong-based company that produces handbags for luxury brands. According to the article, Sitoy’s manufacturing primarily focuses on more accessible names like Coach and Michael Kors, rather than ultra-luxury brands such as Hermès or Chanel. The article mentions that only a few established Chinese firms, including Sitoy, are involved in luxury bag production, highlighting their limited role in the high-end segment of the market.

Superl Group: According to the article, Superl Group is an established Chinese firm that produces handbags for luxury brands, but their work mainly focuses on accessible names like Coach and Michael Kors. The company has five factories, with three now located overseas, reflecting a shift in production due to escalating trade tensions and customer requests to move manufacturing outside China.

Coach: According to the article, only a few established Chinese firms, such as Hong Kong-based Sitoy Group Holdings Ltd. and Superl Group, produce handbags for luxury brands, but their work mainly focuses on more accessible names like Coach and Michael Kors, rather than top luxury brands like Hermès and Chanel. This suggests that Coach does use Chinese manufacturers, but mostly through established and reputable partners.

Michael Kors: According to the article, established Chinese firms such as Sitoy Group Holdings Ltd. and Superl Group produce handbags for luxury brands, but their work mainly focuses on more accessible names like Coach and Michael Kors. This suggests that while some Michael Kors bags may be manufactured in China, they are produced by legitimate, established manufacturers rather than the unauthorized factories featured in the viral videos.

AI generated, for reference only

What Happened When

as of 2025：: Only a few established Chinese firms, such as Sitoy Group and Superl Group, produce handbags for luxury brands, mainly for more accessible names like Coach and Michael Kors.