A factory in China has gone viral after releasing a video revealing that the true cost of producing a luxury Hermès Birkin bag is $1,400.
This stark contrast to the bag’s $38,000 retail price has reignited global scrutiny of luxury markups and intensified debate over the future of high-end branding in an era of economic tension.
The viral video, part of the growing “Trade War TikTok” trend, features a worker breaking down each component of the bag:
- $450 for premium leather sourced from Italy, France, and Germany;
- $25 for high-end French thread;
- $150 for saltwater-resistant stainless steel hardware;
- $50 for imported edge paint;
- $100 for the suede interior; and $10 for the zipper.
Labor costs, which are significantly lower in China than in Europe, help keep total production costs between $1,000 and $1,400 including packaging.
The man concludes with a message that sparked interest: “If you don’t care about logos, you can get the same materials, same quality, for less. Buy it for $1,000 from our factory.”
The timing is notable. As a fallout of the U.S.’s escalating trade war with China, during which President Donald Trump has urged companies to shift manufacturing back to American soil, many Chinese suppliers are pushing back by lifting the veil on the luxury supply chain.
Several are now openly advertising their manufacturing roles for top global brands such as Hermès, Louis Vuitton, Chanel, Estée Lauder, and Bobbi Brown.
What to know
These suppliers are not just sharing the real cost of production; they are offering to sell directly to consumers at one-tenth the retail price, and sometimes even less. Some go further, pledging to cover import duties and provide free international shipping.
- The videos have added fuel to fiery discussions across global social media platforms, with many commentators suggesting that the U.S. cannot win the trade war against China, especially in the face of such radical transparency.
- Hermès has not publicly responded to the viral claims. The French luxury house has built its prestige on limited-edition, handcrafted pieces often associated with wealth and status. But this episode underscores a deepening shift—consumers, now more digitally savvy and economically conscious, are beginning to challenge the assumptions luxury brands have long relied on.
With global supply chains under strain, social media now emerging as a channel for whistleblower-style disclosures, and Chinese manufacturers increasingly embracing direct-to-consumer models, the traditional luxury pricing model may be heading for a reckoning.
