The exposure by TikTokers on the cost of manufacturing luxury branded goods or apparels and where they were actually made is sending a tsunami across the Pacific Ocean. An item costing $5 could be sold for $200, an item costing $1,500 could be sold for $30,000. And what were the buyers actually paying for? It was thought to be good material, quality and artisan skills but these cost only a fraction of the final shelf price. 90% of the shelf price is for the branding and the embossing of Made in Italy, France etc etc. The bulk of the shelf price is for the logo or the brand, not the quality of the item.
Buyers and potential buyers of such branded luxury goods are in shock. They have all gone hiding, too ashamed to be seen with their overpriced luxury items. Carrying or wearing them is like telling the world they are fools. They used to brag about how many thousands they paid for these exclusive high quality items. Many are screaming foul, that they have been scammed, cheated, duped, ripped off, overcharging etc etc. This is an unexpected result of Trump's tariff war against China. The OEMs or Original Equipment Manufacturers are mostly from China. And for all their hard work and expertise, they are only being paid a pittance, slave wages. The biggest beneficiaries are the branded companies. They just subcontract everything to China and collecting huge profits by stamping their brands on the goods.
What made the OEMs angry is that they could not even make a few dollars because of the tariffs, unable to sell their goods. They are even called cheats by the Americans. The real cheats are the luxury brand companies for embossing the goods as Made in their countries, not Made in China when more than 80% of the items are Made in China. The OEMs are taking to TikTok and other social media to advertise their products, inviting customers to buy direct from them, for the real stuff at a fraction of the price of luxury brand companies. They are telling the whole world that China can make high quality luxury stuff.
A direct consequence of this development is that customers that paid for the 'real' stuff at thousands or tens of thousands of dollars are now feeling stupid. They have been educated by the TikTokers for being suckers and paying exceptionally high prices for items that cost the OEMs a fraction to make. Now these buyers of luxury brand goods are afraid to carry them or wear them as it is like making a statement, "I am a fool or I am an idiot' for stupidly wasting so much money for something Made in China, not what was embossed on the item.
For buyers that appreciate good designs and quality they now know where to get them at really affordable prices and come out feeling smart and feeling good. They are paying for quality without being made a sucker by the luxury brand companies. These are the people that would be carrying and wearing this good quality stuff bought at reasonable prices and can brag about it. They are booking the next flight to China for a shopping spree. Those that paid foolishly to the luxury brand companies would not dare to talk about how much they had paid for their branded goods as they would look very silly to their friends and onlookers. People would be staring at them for their stupidity.
The stupendous high margins for branded goods are going to take a hit. The luxury brand companies can only blame Trump for this mess. They cannot lie to their customers anymore. Their loyal customers are running away after knowing that they have been cheated and made a fool off.
4 comments:
Good morning Mr RB And All
Actually these goings on of the Frenchies and the Italians CON
making profits should be wary by the Dafts of the World.
Deng Siao Ping ever rebuked the Americunts publicly saying we manufactured for you at a cost of a pittance that you sell and made enormous profits and yet you can accused us of unfair trades practices.
He said a pair of Nike Sports shoes we only do.it for just UASS 5 to 10 and you sell at hundreds and more with some even higher with their CON marketing of limited editions.
The Frenchies and Italians been ripping off those grandeur snobbish idiots who just wanted to show off with their so called high class luxury items.
Likewise in.cahoots those also unscrupulous and Tai Lan Pang Hei profits making scoundrels with even a drop of their blood and sweat slaughter their own.
Just like now the Dotard Trump's socalled Tarrifs collections of the Americunts who actually paid for them.
Likewise in Sinking Land where a manufacture car at $20K or less been paid for by a Sinkie at least 70 to 80 K and now 100 over K with the Collecter NOT even produced a nut or screw.
The Frenchies and Italians simply outsourced all the main bulk of the works to the PRCs and then had the finished products back yo them just to stitched on their insignias and logos which they smartly won't be stupid to give them to the PRCs.
Then claimed them to be manufactured by them
Paying the PRCs at a few hundreds or just a thousand and selling to the SNOBs at hundred of thousands.
They made sure that the PRCs must kept it confidential and fleeced the Imbeciles.
Saved for the Swiss and the Japanese who really made their own and no outsourcing the Rest of the socalled luxurious items are no better than China or even Hong-Kong Replicas and Fakes.
The Rolexes and other Branded Watches Replicas made.in China, you won't be surprised are as the same.as the original ones.
Paid more for those shoddy fakes ones at a few hundreds more and won't be easily identified.
The TikTokers are educating the consumers not to waste too much hard earned money on overpriced luxury goods where the instrinsic value is very low. Over indulging in such fanciful desires is not a good thing. Moderation and spending money smartly is the way to go for both the Americans and Chinese consumers.
Fools are soon parted with their money.
https://vt.tiktok.com/ZSrtkDEAH/
All branded shops selling their Scams luxury goods closing down
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