Is it true that HERMÉS is made in China?
TikTok videos get viral claiming that Hermès bags are made in China, with logos later added elsewhere. $1400 for a bag costing over $30000 on resale market? Could it cause a turmoil for Hermés Fashion House as well as other high-end luxury designer brands?
Let’s look into it.
Hermès stands out in the luxury world for several key reasons, which together create its unique position in the market. It's more than just a brand; it's a symbol of craftsmanship, heritage, exclusivity, and timeless luxury. The scarcity on the market drives resale value x3 times. Most popular bags like Hermès Kelly, Hermès Birkin, Hermès Constance minimum doubling if not tripling in price as soon as bag leaves the store.
A viral video on X (formerly Twitter) has sparked significant discussion, amassing around 9 million views. The video claims that a Birkin bag, which usually retails for about $30,000(roughly Dh110,000), could be produced for as little as $1,400 in China.
It’s important to note that this revelation came into place after Donald Trump imposed tariffs on China.
In the video, the supplier suggests that a significant portion of the bag's price—over 90%—can be attributed to the power of the Hermès brand and its logo, rather than the cost of materials or labor involved in production.
This revelation has ignited a heated debate online, with many users expressing surprise at the potential markups and questioning the true value of luxury brands. On platforms like TikTok, a growing trend has emerged, where Chinese manufacturers are offering luxury-inspired items directly to consumers at a fraction of the retail price.
We are yet to see if that will anyhow affect sales of high-end designer items.
There are a lot of non authentic Hermés bags circulating in the market which are mostly made in China with a very attractive price tags.
Counterfeit products pose a serious concern for luxury brands. Many direct-to-consumer deals may involve counterfeit or "knockoff" items, which infringe on intellectual property rights. While these imitations may look similar to the originals, they often fall short in terms of quality and durability, lacking the strict quality control standards that authentic products undergo.
Buying counterfeit goods can also result in legal trouble in certain countries. Leading luxury brands, such as Hermès and Louis Vuitton, emphasize that their products are not produced in China, with most of the manufacturing and craftsmanship taking place in Europe. This is part of their commitment to preserving brand prestige and adhering to "Made in" regulations.
Although a TikTok video may claim that luxury bags are made in China, this is highly unlikely when considering labeling regulations in both the U.S. and the EU.
In the U.S., for a product to be labeled "Made in USA," it must comply with the Federal Trade Commission's (FTC) "all or virtually all" standard. This means that nearly all significant components, processing, and labor must originate from the U.S., and the final assembly must take place in the country. Additionally, the product cannot undergo "substantial transformation" abroad.
In the EU, product labeling is regulated under EU Regulation 952/2013, but countries like France and Italy have even stricter rules in place to protect their luxury and artisan industries. These guidelines ensure that luxury goods maintain their authenticity and meet the highest standards of quality.
French fashion brands, including but not limited to Hermès, often take their commitment to quality a step further by ensuring that every aspect of production—design, material sourcing, cutting, assembly, and finishing—takes place in France. Many of these brands also follow the Origine France Garantie (OFG) certification, a stringent national standard. To meet OFG requirements, a product must have its essential characteristics created in France, with at least 50 percent of the unit cost coming from French operations. This certification emphasizes the brand’s dedication to maintaining the highest levels of craftsmanship and supporting local industries.
