Can't afford a Birkin bag? The Chinese have a solution
What's the story
Chinese suppliers are offering products similar in quality to those made for high-end brands like Birkin, Louis Vuitton, Chanel, and Bobbi Brown on social media, but without the brands' logos.
The prices quoted by these suppliers are significantly lower than the retail prices of the branded goods.
For instance, a Birkin bag that retails for $34,000 (around ₹29.3 lakh) is available for as little as $1,400 (approximately ₹1.2 lakh) without the brand markings.
Profits
Suppliers reveal cost breakdown and profit margins
These suppliers have been posting videos on X, detailing the high-quality materials and skilled labor that go into their products. They also give a detailed cost breakdown of their items.
A supplier for Birkin bags disclosed that the actual production cost of these bags is much less than their retail price, with most profits going to the brands for their logos.
Trade impact
Chinese are selling directly to customers
The US-China trade war has resulted in higher tariffs on Chinese goods and led suppliers to opt for selling directly to consumers as a strategic response. Even with the additional import duties and shipping costs, these products are cheaper than those sold through American corporations.
Quality assurance
Chinese suppliers challenge quality perceptions
In a bid to debunk the myth that Chinese products are of poor quality, some viral videos have displayed the manufacturing process in Chinese factories.
This move by Chinese suppliers comes in light of US tariffs and is a response to trade tensions.
Meanwhile, the Chinese government's larger plan to bolster its global economic partnerships and stand against US pressure continues as a separate aspect of its strategy.