Hermes Made in China?

This morning I woke up to a wave of viral videos from China alleging that the bags from the top luxury brands including Hermes, Louis Vuitton and Chanel are made in China and then sent back to Europe to do the final packaging there. They claim that the manufacturing costs of these products are a fraction of the cost they are finally sold at.

With the number of these similar videos all coming out at the same time, this  does appear to be a coordinated move. Perhaps it is a response to the Trump tariffs to get overseas buyers to buy directly from them? Or perhaps it is to cast doubts on the claims by luxury brands that their products are made in France or Italy and then create volatility in that market?

I do own Hermes and Louis Vuitton bags. They cost a lot but to their credit, they do last a long time. I do not believe Hermes and Louis Vuitton make their products in China.

But the prices have also been increasing steadily over the years and with hefty rises since Covid. I think a Birkin has more than doubled over the last 15 years. I remember it used to cost about $7k for the Birkin if you bought it in Paris. I am sure the production cost has not increased by that much. The pricing now, I suspect, has more to do with the fact that to maintain a luxury image, the product has to be priced to keep it away from the masses and at a level to create a yearning to obtain it. Unaffordability seems to be key nowadays to maintaining a high end image. Of course making a healthy profit out of selling luxury doesn’t hurt.

A Hublot watch, when they first started becoming known to the market, then cost me $7k. Now it’s going for about $20k. Inflation?

Maybe the fault is that of the consumer. We have started becoming brand and image conscious and we buy brands without asking whether the asking price for the product makes sense. There are numerous quality products out there which are much more affordable but without a French or Italian brand name.

Perhaps the purpose of these Chinese videos is to educate you on the cost price for these products should be. What you are ultimately paying for in the stores is for the image and the marketing and packaging. Also by showcasing these products in their videos another subtle message may be that they can manufacture products as well as their French and Italian counterparts at a fraction of their price.