Chinese manufacturers purportedly behind big-name brands like Nike, lululemon and Ralph Lauren are hitting back at US tariffs on TikTok by exposing the actual cost of making their products.
In a video from user LunaSourcing China, which has now clocked more than 12 million views and 1.4 million likes, a woman claims to reveal the manufacturers of brands like lululemon, Fila and Under Armour.
“They sell you a legging pants for $100. And guess what, here in these two factories you can get them for around five to six bucks,” she says in the video.
The woman also claims that “the material and craftsmanship are basically the same because they all come from the same production line.”
TikTok has exploded with thousands of videos like this, with factories encouraging users to purchase direct from them and avoid the inflated prices expected to come from many US brands with manufacturing centres in China as a result of tariffs imposed by their government.
In a statement to The Sydney Morning Herald and The Age, lululemon denied any association with manufacturers featured in online videos and urged consumers “to be aware of potentially counterfeit products and misinformation”.
“Authentic lululemon products are only available for purchase at our lululemon store locations, registered lululemon e-commerce sites, and select authorised and specialty stores.”
Dr Marina Zhang, an associate professor at the Australia-China Relations Institute at the University of Technology Sydney, says the trend is indicative of China’s dominance over the global supply chain.
China is the leading manufacturer of textiles, producing 65 per cent of the world’s clothing in 2021. But the US introduction of steep tariffs on major textile manufacturing hubs, including China at 34 per cent and Vietnam at 46 per cent – has sent the global supply chain into a tailspin.
Historically, consumers have had little insight into the origins of their clothing, and the price breakdown of each piece. But social media platforms like TikTok allow manufacturers to speak directly to potential customers halfway across the world. Chinese e-commerce sites like Alibaba and Taobao (both owned by Alibaba Group), which function as marketplaces for suppliers, are also collapsing the relationship between consumer and manufacturer.
The popularity of such videos among consumers in the US and abroad, Zhang says, also reflects American consumers’ fears around the introduction of tariffs.
“The reality is the [US] domestic market is not ready to absorb all the production capacity from China.”
She also thinks such videos convey a sense of “[Chinese] nationalism on social media, even implicitly directed by the Chinese official media.”
“The Chinese have this determination to fight to the end with the US, and they’re not bending down to the US bullies,” she says.
Indeed, much of this content coming out of China carries a disdainful, mocking tone. Zhang points to a viral AI-generated video circulating on Chinese social media sites last week showing overweight Americans working in garment factories.
While steep tariffs on goods from countries like China will mean all incoming packages from overseas will be subject to duties and fees, Zhang doubts the US will have the “institutional power” to enforce regulations around individual parcels arriving from China.
At home, Zhang expects US tariffs – and the ensuing clapback from China – to have “a strong negative impact on some Australian brands”, many of which rely on manufacturers in Vietnam and China.
Lululemon has denied any association with manufacturers featured in online videos.Credit: Getty Images
While these videos mainly seem to target US brands, many also feature luxury goods from European companies such as Dior, Louis Vuitton and Hermes. All three manufacture their bags in Europe, despite claims on social media.
Marine Guillou, a principal at Phillips Ormonde Fitzpatrick who specialises in anti-counterfeiting and IP, says it’s extremely unlikely these claims from Chinese factories are legitimate. She points out that many are actually sourcing agents, rather than manufacturers.
“That’s completely different from manufacturers. Anybody can be sourcing items. I would be extremely cautious as a consumer, if someone said ‘I’m from this company and I have it 10 times cheaper’.”
While it’s impossible to say for sure, she suspects most manufacturers of these Western brands would be bound by strict non-disclosure agreements. And she says most legitimate manufacturers would not want to jeopardise their relationship with brands.
“If you have a contract with them, you want to keep them. It’s a long-term partnership.”
Whether the legitimacy of these products matters to customers remains to be seen – suppliers and manufacturers in China certainly seem to be taking advantage of current conversations around Trump’s tariffs.
“Most people who are going to watch a video on TikTok, they’re never going to crosscheck anything. It’s not even the point,” says Guillou.
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