Now that Chinese manufacturers have gone ahead and exposed how luxury brands post a 90% markup on top of their products, and offer the public a chance to buy the same products directly from the factory at cost, I’ve been thinking a lot how about the repercussions and I’m listing here some of my thoughts:
High street locations – There are locations around cities where people hunt for these things. They are very posh, very nice areas like BGC or Makati, they attract high end restaurants, have lots of human traffic and charge rent by the millions of pesos. If the top brands are exposed to have less value, the market may think twice, sales may go down, shops will close and the glitter of high street get tarnished. Jobs will surely be affected and the local economy around these as well.
The rich and pretentious – Truly moneyed people will see a 150% markup as a better opportunity to flaunt their wealth. Nothing says you’re rich more than buying a bag everyone knows is now thousands of times more expensive after the tariffs. It’s important though that the brands make a POST TARIFF version of their products to distinguish it from the PRE TARIFF models, which would be cheaper. Brand vloggers and their kind who know these things will make content to make sure everyone knows, making the people who lust after these things even more envious, achieving their goal.
The poor and pretentious – The ones who have had to take out mortgages to buy these will truly suffer. Now, none of their friends and relatives at Sunday church are going to be impressed with their pre tariff bags because they’re considered a scam. You will look like a sucker, and worse they can’t afford the post tariff models. They’re going to have to find new ways to gain the respect they’re trying to buy. It truly sucks to be poor.
The quality conscious – These people will gain the most. The video I reference in this image is of the Chinese manufacturer explaining where they source the leather (Germany, France, Italy), the stainless steel (will never tarnish or rust), the glue, the lining, the stitching, the workmanship is all world class, all top notch. You will be hard put to find a better bag, and it is possibly the best most well made, most high quality bag you may ever own, now available to you at less than a tenth of the cost after its branded.
The timing – Obviously the Chinese government instructed these manufacturers to make these videos, which is the only explanation why so many of them, the makers of Nike, Adidas, Ugg, etc. were published almost at the same time. I’m still wondering about the pros and cons of this to their economy, the manufacturers themselves and the global market as a whole.
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