On 14 April 2025, a viral TikTok trend from China rocked the luxury goods market, propelling the Chinese e-commerce platform Dhgate to the pinnacle of the US App Store. Fuelled by intensifying US-China trade tensions, videos from Chinese manufacturers exposing the production secrets of brands like Gucci, Chanel, and Hermès have captivated millions, as reported by TechCrunch.
Known as 'Trade War TikTok', these clips reveal jaw-dropping markups, driving a surge in DHgate's popularity. What's powering this global phenomenon?
READ MORE: What Is DHGate: Is It Safe To Purchase From, Why Are The Products So Cheap And More
Manufacturers Pull Back the Curtain
The trend ignited as Chinese suppliers, hit by US tariffs raised to 145%, turned to TikTok to demystify luxury goods production. A viral video claimed a Hermès Birkin bag, sold for £29,600 ($39,000), costs just £1,090 ($1,400) to produce, with brands adding logos in Europe to claim 'Made in Italy' status.
TechCrunch highlighted creators targeting brands from Louis Vuitton to mid-tier names like Lululemon, asserting Chinese factories use identical materials for both. Their message resonates: why pay thousands for branding alone?
This transparency has struck a chord. On 12 April 2025, DHgate's downloads soared to 35,400 across app stores, a 56% jump from its 30-day average, per Appfigures. By 14 April, it hit No. 3 among free iPhone apps in the US, up from No. 352 days earlier. The videos, showcasing factory floors, workers stitching bags, and detailed cost breakdowns, challenge trust in luxury pricing, funnelling users to platforms offering near-identical goods at a fraction of the cost.
Trade War Heats Up the Narrative
The backdrop is a fierce US-China trade war. Trump's tariff hikes, countered by China's 125% duties, have disrupted global supply chains. The Financial Express noted on 14 April 2025 that Chinese creators frame these videos as defiance, with one stating: 'We make all the cards.'
By revealing China's role in crafting goods from Prada bags to Rolex watches, they underscore its manufacturing dominance, dismantling Western branding myths.
DHgate, offering over 30 million products from apparel to jewellery, has capitalised on this shift.
Yet, navigating its marketplace is complex. Bloomberg reported on 14 April 2025 that communities like Reddit's r/DHgate guide users to distinguish authentic factory goods from counterfeits, or 'dupes'.
Another app, Taobao, climbed to No. 10 on the US App Store, reflecting a broader pivot to direct-to-consumer platforms. The trade war's ripple effects continue to reshape shopping habits, amplifying these platforms' appeal.
Consumers Rethink Luxury's Value
The videos have sparked a global debate about luxury's worth. Clips detail costs—like leggings costing £3.90 ($5) matching Lululemon's £78 ($100) pairs—prompting viewers to question markups.
The Independent reported on 15 April 2025 that while brands like Lululemon deny heavy reliance on Chinese production, the narrative persists: consumers feel misled by branding. Social media amplifies this, with X posts on 14 April celebrating the 'UNO reverse' on luxury giants. Posts from @sensbags2 on Tiktok started the ball rolling and went viral with many others joining in.
Despite tariffs on non-electronics imports, DHgate's affordability drives its rise. The end of the US de minimis exemption, per Reuters, may increase costs, but for now, the app thrives.
As videos flood feeds, they're reshaping perceptions of value, turning TikTok into a battleground for trade disputes and consumer awakening. With global trade valued at £83 billion ($109 billion) at stake, per Goldman Sachs, the trend's impact reverberates across markets.
