China Exposing Luxury Brands Go Viral Driving DHgate to Top of US App Charts

On 14 April 2025, a viral TikTok trend from China rocked the luxury goods market, propelling the Chinese e-commerce platform Dhgate to the pinnacle of the US App Store. Fuelled by intensifying US-China trade tensions, videos from Chinese manufacturers exposing the production secrets of brands like Gucci, Chanel, and Hermès have captivated millions, as reported by TechCrunch.

Known as ‘Trade War TikTok’, these clips reveal jaw-dropping markups, driving a surge in DHgate’s popularity. What’s powering this global phenomenon?

Manufacturers Pull Back the Curtain

The trend ignited as Chinese suppliers, hit by US tariffs raised to 145%, turned to TikTok to demystify luxury goods production. A viral video claimed a Hermès Birkin bag, sold for £29,600 ($39,000), costs just £1,090 ($1,400) to produce, with brands adding logos in Europe to claim ‘Made in Italy’ status.

iTechCrunch highlighted creators targeting brands from Louis Vuitton to mid-tier names like Lululemon, asserting Chinese factories use identical materials for both. Their message resonates: why pay thousands for branding alone?

This transparency has struck a chord. On 12 April 2025, DHgate’s downloads soared to 35,400 across app stores, a 56% jump from its 30-day average, per Appfigures. By 14 April, it hit No. 3 among free iPhone apps in the US, up from No. 352 days earlier. The videos, showcasing factory floors, workers stitching bags, and detailed cost breakdowns, challenge trust in luxury pricing, funnelling users to platforms offering near-identical goods at a fraction of the cost.