
For the serious handbag collector, purchasing a Hermès Birkin is a pinnacle achievement. Beyond the eye-watering price tag for the purse alone, being offered a Birkin for purchase is often the result of several thousand dollars in prior sales with Hermès and a positive, established relationship with a salesperson who is authorized to offer Birkin bags to hand-selected customers deemed worthy of carrying a Birkin. The pre-owned market does not offer any price relief, as a Birkin is one of the few fashion items capable of appreciating in value. So, it comes as no surprise that handbag enthusiasts who don’t have the cash for the bag itself, or the time, money, or desire to spend on purchasing other items, look to other options.
And those shoppers with a TikTok account may have learned this past week of a new “option” to source dupes of Birkins and other luxury brand products direct from Chinese manufacturers. In these viral posts, the content creator claims that—in direct response to the U.S. Tariffs—they are exposing many of the world’s costliest luxury goods are made at a sliver of the retail price in China. Many of the videos include links to where individuals can purchase goods directly from the Chinese manufacturer.
To be clear, regardless of whether the goods are purchased directly from a third-party manufacturer that is involved with the designer item’s production, the item purchased is still a counterfeit. But that hasn’t stopped many shoppers from buying $5 leggings said to be produced from the same manufacturer as Lululemon or $50 Louis-Vuitton style bags. As a direct result of these viral videos, the Chinese wholesale marketplace app DHgate jumped to the No. 3 spot of free iPhone apps in the U.S. Apple App Store, from No. 352 less than a week ago.[1] Of course, using DHgate is not a solution for avoiding tariffs, as any Chinese imports to the U.S. will still be impacted by the tariffs and potential seizure by customs officials. But those details may be less important to a buyer who is only shelling out $1,400 for a Birkin dupe instead of the minimum $15,000 for an authentic Hermès purchase.
With this swarm of videos has come the question—how are brands able to identify as being made in one country when a significant portion of the bag is made elsewhere? Much confusion often exists at the consumer level about what the “made in” tag means, with ordinary consumers assuming that if a product is identified as being made in a specific country, say Italy, a consumer may assume that a product bearing a “made in Italy” tag includes all Italian-made materials and craftsmanship. Yet, due to the often-complex supply chain in the fashion industry, there is often not a clear through-line about the country of origin. And the fact that this murkiness exists is no secret. For example, in 2017 the luxury brand Louis Vuitton received heat after an investigative report claimed that near-entire shoes for the Louis Vuitton Moet Hennessy (LVMH) luxury group were made in Romania, with only the soles being added in Italy.[2]
Generally, every article of foreign origin into the U.S. must be marked with its country of origin. The country of origin means the country or territory where the good originates. The marking rules and regulations can vary across different products and industries, particularly when a good’s manufacture begins in one country and is completed in a second country. For textiles and apparel products, the country of origin to be marked is:
(1) The country where the good was wholly obtained or produced;
(2) If (1) is not applicable, the country where the product underwent a change in tariff classification or met other requirements specific to the article, which are specified in 19 USC 102.21 (e);
(3) If (1) nor (2) apply, then the country is where:
a. 50% or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good (“knit to shape”); or
b. The good was wholly assembled;
(4) If (1)–(3) do not apply, the country of origin is where the most significant assembly or manufacturing process occurred; OR
(5) If none of the foregoing apply, the country of origin is the last country where an important assembly or manufacturing process occurred.[3]
In luxury brands, the most labor-intensive part of the production, such as elaborate embroidery and embellishments, are done on panels and then assembled to create the finished product in the “made in” location.[4] High end designers, such as French designer Isabel Marant, have acknowledged that much of haute couture originates with Indian artisans.[5]
Considering the murkiness in the marking rules being an open secret for fashion—assuming what they claim is true, why are these manufacturers now speaking up? Based on comments from the content creators, the videos appear to be a response to the U.S.’s ongoing trade war with China after Trump placed 145% tariffs on Chinese imports, to which China retaliated with its own 125% tariffs on U.S.-imported goods.[6] It’s reasonable to believe some are chasing new buyers, but other commentators suggest that the videos are intended to communicate to U.S. consumers how much they actually rely on China for goods they believe originate in other countries. Indeed, the Peterson Institute for International Economics determined in 2024 that 40% of all footwear and 25% of all textiles and clothing imported into the U.S. came from China.[7] Some of the videos also directly attack “made in China” stigma, where Chinese-manufactured goods are treated as synonymous with being cheap or poor quality. Whatever the reason, the claims made should all be taken with a massive grain of salt—as the claims are directly contrary to the full-throated representations made by various European fashion houses and could be merely a well-timed effort by counterfeiters to sell counterfeit luxury items under the guise of being the “same” as a quality product.
Though the claims by content creators may not change the minds of consumers that believe luxury pieces are a worthwhile investment, there is no doubt that these claims continue to draw negative press to luxury brand markups and the actual “worth” of such products. The surge in popularity of apps like DHgate also illustrate how effectively Chinese creators can leverage platforms like TikTok to influence U.S. consumers.[8] A scandal last year about Dior and Armani utilizing sweatshops in Milan threw water on claims that the high price tags are justified by the brands avoiding human rights violations, and Q1 stock reporting from brands like LVMH signal tough times ahead.[9] It’s undoubtable that these videos call into sharp question, for many U.S. consumers, where these luxury brands are actually crafted and whether the “made in” tags actually reflect the quality they have come to expect with the high price tags. It also calls into question what can be done about these luxury counterfeiters that are offering purportedly Chanel Boy Bags and Hermès Birkins without the hefty price tags.
What can be done all comes down to the tricky situation of trademark and trade dress enforcement ability in China. Just last year, luxury retailer Burberry won a significant infringement claim and was awarded £675,668 in damages by the Jiangsu Provincial High People’s Court relating to infringement by the holder of a Chinese trademark registration for Baneberry, under which it sold in approximately 40 pop up shops products bearing Burberry’s iconic checked pattern and a logo resembling Burberry’s Equestrian Knight design.[10] In addition to the infringement, the Chinese court found that Baneberry had registered their trademarks in bad faith. This ruling signified to many an increasing ability to bring actual enforcement action against infringers in China, which, according to the Organization for Economic Cooperation and Development, accounts for more than 80% of the world’s counterfeit goods.[11]
But China’s willingness to support U.S. efforts to weaken counterfeiting are inseparably connected to the two countries’ trading relationship. Beijing has taken steps since 2019 to increase IP enforcement efforts by introducing stricter trademark laws, increasing penalties for infringement, and establishing specialized IP courts. But those efforts could stall as tensions increase, putting at risk the ability to challenge infringers, increased counterfeiting, and increased cyber espionage.[12] There are theories that China is considering giving free reign to counterfeiters that target American brands (such as often-counterfeited brands like Ralph Lauren, Tom Ford, Calvin Klein, Coach (Tapestry), Jimmy Choo (Capri), The Row, Estée Lauder, and La Mer) in response to the trade war. Social media content creators have also noted Zara, H&M, and Stanley as at risk since many of their products are known to originate in China. Such a strategy would not be without precedent. In 2023, in response to U.S. and E.U. sanctions related to the Ukraine invasion, Russia ended the requirement for goods entering Russia to provide a certification of IP ownership of the goods.[13] While the products could still be inspected by local authorities, reports reveal these inspections to be relatively lax and many of the certifications clearly faked.[14] As a result, many counterfeit luxury goods have flooded the market in the EU through Turkey. Also at risk is the possibility of retaliatory measures; China has previously threatened to cancel trademark registrations and patents in response to past trade disputes.[15]
For U.S. companies watching these developments, a few measures can be taken to best arm themselves against these volatile times. First, companies seeking expansion in and manufacturing in China should seek to register patents and trademarks early. China has a “first to file” trademark application process that can allow bad faith actors to apply for trademark applications on established brands, complicating the enforcement process when the time comes. Second, companies should also be sure to invest in their security infrastructure to protect proprietary designs and trade secrets.
[1] Sarah Perez, “Chinese marketplace DHgate becomes a top US app as trade war intensifies”, TechCrunch (Apr. 14, 2025) (https://techcrunch.com/2025/04/14/chinese-marketplace-dhgate-becomes-a-top-us-app-as-trade-war-intensifies/).
[2] Alexandra Lembke, “Revealed: the Romanian site where Louis Vuitton makes its Italian shoes”, The Guardian (Jun. 17, 2017) (https://www.theguardian.com/business/2017/jun/17/revealed-the-romanian-site-where-louis-vuitton-makes-its-italian-shoes).
[3] 19 USC 102.21(c). See also “Marking of Country of Origin on U.S. Imports”, U.S. Customs and Border Protection (last accessed Apr. 15, 2025) (https://www.cbp.gov/trade/rulings/informed-compliance-publications/marking-country-origin-us-imports).
[4] Emily Chan, “What Does the ‘Made In’ Label On Our Clothes Actually Mean?”, British Vogue (Jan. 18, 2024) (https://www.vogue.co.uk/article/what-does-made-in-label-mean-clothes).
[5] Kai Schultz, et al, “Luxury Fashion Relies on Indian Artisans. The Labels Tell a Different Story”, Bloomberg (Sept. 28, 2023) (https://www.bloomberg.com/features/2023-india-luxury-fashion-supply-chain/).
[6] Dhani Mau, “Hey, Quick Question: Why are Chinese Fashion Manufacturers Going Viral on TikTok Amid the Tariffs Chaos?”, Fashionista.com (Apr. 14, 2021) (https://fashionista.com/2025/04/chinese-suppliers-manufacturers-tiktok-luxury-fashion-brands).
[7] Id.
[8] Sarah Kent, “’Trade War TikTok’ Takes Aim at Luxury”, BusinessofFashion.com (Apr. 15, 2025) (https://www.businessoffashion.com/articles/sustainability/trade-war-tiktok-luxury-brands-chinese-factories/).
[9] Id.
[10] Maura O’Malley, “‘An important moment in Chinese IP litigation’ – Burberry celebrates trademark infringement win in ‘key market’”, Global Legal Post (May 8, 2024) (https://www.globallegalpost.com/news/an-important-moment-in-chinese-ip-litigation-burberry-celebrates-trademark-infringement-win-in-key-market-1386955387).
[11] “Behind the U.S.-China Trade War is a High-Stakes IP Battle”, The Fashion Law (Apr. 9, 2025 (https://www.thefashionlaw.com/behind-the-u-s-china-trade-tariffs-is-a-high-stakes-battle-over-ip/).
[12] The Fashion Law, note 11.
[13] Noëmie Leclercq, “Putin weaponises counterfeit luxury goods amid Ukraine war”, Glitz.com (Sept. 2, 2023) (https://www.glitz.paris/en/entourage/2023/02/09/putin-weaponises-counterfeit-luxury-goods-amid-ukraine-war,109911779-evg).
[14] Id.
[15] The Fashion Law, note 11.