Are Hermès, Louis Vuitton, and many other luxury brands manufacturing their bags in China?
A recent trend on TikTok has stirred up a storm within the luxury goods community. Some Chinese manufacturers are allegedly exposing Western luxury brands, making huge markups and exploiting consumers by making their products in China but finishing them off in France or Europe to avoid the "made in China" label. The Chinese manufacturers are encouraging Western consumers to buy the same quality product directly without paying the markups. Just like any heated topic, the voices are divided. Some believe what the TikTokers said, but some hold firm on the belief that the luxury bags they bought are genuinely made in France or Europe.
Before we decide what's true, why don't we ask a few questions and discuss both sides of the argument? People make outrageous claims all the time, but why do they believe in this one? This reminded me of one of the lessons I had from my art classes. We were told that with certain art styles, the artists may not paint every realistic detail, but if you give the viewers enough elements, viewers will complete the picture in their heads. So what are the elements presented here to persuade the luxury community to believe what the TikTokers claimed may be true? The first thing that comes to mind is the incident with Dior Book Tote. They were exposed to using Chinese contractors in Italy to make their bags, and workers were poorly treated, far less appealing than the luxury brand claims. When Dior promoted the Book Tote, I remember seeing well-made promotional videos emphasizing the artistry behind the design and how their artisans handmade the bags. When the news about the Chinese manufacturer in Italy came out, it shocked the community. People who buy luxury goods often proudly claim the superiority of the service, the quality, and all the good cause behind that high price tag. The luxury community frequently despises fast fashion because, allegedly, the fast fashion industry is often linked with child labor and unfair treatment toward their employees. With the Book Tote scandal, the people who supported the brand felt betrayed; the good cause they believed in was a mirage. Soon later, people also discovered more luxury brands were in the same boat, the grand facade crumpling down to the point that people avoided using the bags mentioned in the scandals.
Other than the scandals, we have heard about degrading quality and invisible quality control for years. We have seen numerous videos complaining about the leather quality of Chanel bags. Allegedly, some of their leather is heavily coated with artificial material, and some leather started to peel not long after people began to use the bags. In addition, people have frequently made videos comparing the quality of Louis Vuitton's coated canvas. Some people believe the quality of their infamous coated canvas is no longer what it used to be. When I purchased my first Louis Vuitton bag, I was shocked they tried to give me a wonky bag at the store. LV is known for its heritage monogram. People thought it was a fake bag if the monogram pattern didn't align. However, I had seen the bags with misaligned monogram patterns when I shopped at Louis Vuitton stores. I was unsure if the myth was real or if their quality control was not what it used to be. I also saw they tried to sell their client's bags and charms with scratch marks when I was in the store. Within my limited personal experience, I didn't see luxury.
In addition to quality issues, companies like LV and Chanel are well known for their outrageous price increases. During and after the pandemic, luxury brands continued to increase prices way beyond the cost or inflation rates. Consumers grew tired of those behaviors and started to call them out and associate them with the definition of greed. People often defend Hermes' top-tier price tags; it is the heritage, they said. How about other companies? Take Balenciaga, for example; their heritage was more in fashion and clothing but not much in bags. So why are they boldly selling their Rodeo bags for over $5K? Is Balenciaga supposed to be more prestige compared to LV? How about Phoebe Philo? The designer started her brand recently, and her large-size bags are priced between five to ten thousand dollars. She may be an experienced fashion designer, but she is not old enough to have the so-called heritage to support that price range. Supposedly, you can self-declared as a luxury brand and start selling premium-priced items without appealing reasoning. Are consumers supposed to eat it up like an idiot? I am unsurprised that people question the purpose of luxury goods and the fantasy they are selling.
One of the big reasons people believe in these TikTok videos is the shift in the media environment. Some TV stations haven't reported news in their news programs for years. The news is more like the personal opinions of well-known newscasters or TV hosts. Because people see it on TV, they start to believe it is true. The phenomenon is basic brainwash 101. On top of that, some politicians like to make announcements on social media instead of through formal media channels. When you are used to reading the "news" on social media, it is getting harder to differentiate what's real. Americans often follow a culture of belief instead of questioning and doing critical thinking. Unfortunately, sometimes a strong religious community usually has the sheep mindset, which lacks independent thoughts and passively follows.
Now, for all the reasons I mentioned, Do I believe what the TikTokers said was true? Unfortunately, I don't have an answer for you. It is not my place to tell you true or false since I don't live in China and haven't visited those factories. My judgment is not a base for what's real. From my understanding, most people in the videos didn't really claim that they worked for the factories producing luxury goods for the brands. They claimed that luxury brands manufacture their products in China, which could be true, and they can make the same quality products as what you get from luxury brands. Still, it doesn't mean you get the products from the same factory those luxury brands use.
Many people want to know if Hermes makes its bags in China and finishes them in France. I have read arguments from both sides. For example, people claim their Birkin was not made in China because it was custom-made and took three years to make. Sorry to break it to you, but the time involved in getting a bag doesn't indicate anything other than your worth to the brand. People do that all the time in their personal life. When someone asks you out, and you are not interested, you delay the response; you push out the meeting date, which indicates how you feel about the person and not your availability. How often have you told people you are too busy to meet up but were simply watching Netflix at home? Scarcity marketing is used in many companies; almost every brand you can mention has tried it. It is a cheap trick to drive desirability and create a sense of urgency to purchase.
What I would like you to ponder is some numbers. Feel free to look up Hermes's revenue numbers from last year. Google says Hermes' 2024 revenue is $15.2 billion. Feel free to ask yourself, what do people buy from Hermes? Allegedly, you have to buy a certain amount before the salesperson would offer you to buy a bag. So, let's assume 30% of the revenue was from the bags. That's $4.5 billion. Again, assuming the average price for a Hermes bag is $10K. It is 456,000 bags! Hermes claims it takes their artisan 40 hours to create a Birkin bag. You do the math. Where is this giant factory in France? Can I see a picture? Based on the revenue, whatever they sell may not be from a heritage workshop. It has to be a massive production to produce that many products, right? I am not an insider or whistleblower, but I have questions I can't answer. From the promotional videos I could find, I often see blurred backgrounds and places that look like a small workshop. How many small workshops in France produce enough products to gain billions of revenue?
* All the content above is based on personal opinion.
