Big western fashion brands, including US sportswear giants Lululemon Athletica Inc (NASDAQ:LULU), Nike Inc (NYSE:NKE, ETR:NKE) and French luxury behemoths Louis Vuitton Moet Hennessy (EPA:MC) and Hermès International, are being targeted by Chinese manufacturers using TikTok to claim they can make much cheaper knockoffs using the same production lines.
It follows Donald Trump launching 145% 'reciprocal' tariffs on China, with a $800 tariff-free parcel limit exemption also expiring in May.
A key reason the US President has imposed the tariffs is that he wants to bring manufacturing back to the US.
In the wake of the tariffs, a slew of videos has flooded onto TikTok, claiming to be selling $5 yoga leggings from Lululemon’s own production lines, in one example, with the retail price standing at over $100 in the US. "The material and craftsmanship are basically the same," the TikTok creator says.
Louis Vuitton knockoffs for $50 are also on offer if you send a direct message to the Chinese chap videoed pacing his factory floor.
While LVMH and the other big brands deny making goods in China, the viral clips have been blasted to 10 million pairs of eyeballs and are more about selling an idea.
The playboook for these Chinese manufacturers is clear: flood the feed, ship the dupe, blame Trump & Co.
A senior partner at Shanghai-based consultancy Tidalwave Solutions suggested to Bloomberg that the trend is part of a broader shift in sourcing practices.
"In the past, you might use a middleman or a trading company to source your products, for your deal with quality control, or go visit the factory, establish those relationships, and then maybe you would come on occasion," he said. "But now what we're seeing is just a complete democratization of sourcing products."
Other TikToks from China have mocked the potential shift of manufacturing from Asia to imagined US sweatshops, using AI video charactering US factory workers as overweight and struggling to handle the small details of assembling electronics or making clothes.
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A recent Reuters story noted the problems that LVMH had when it tried to move manufacturing to the US in the first Trump presidency.
The factory in rural Texas, built to make designer Louis Vuitton handbags, was plagued with waste and was 'significantly' underperforming other facilities for LVMH globally, with high levels of waste.
Former Louis Vuitton employees said leather workers at the Rochambeau Ranch factory lacked the skills to hit the high targets needed for the bags to pass quality control, prompting many to try to cut corners.