A 200,000 Taka iPhone costs only 12,000 Taka to produce – says China.

A 200,000 Taka iPhone costs only 12,000 Taka to produce – says China.

The U.S. seemingly dug a hole for its rival but ended up falling into it themselves. China has begun to expose the hidden secrets behind the luxury world, turning the tables on America’s most prestigious brands. You might be shocked to hear this – that luxury handbag you use, sold for 3 million Taka, may have only cost 21,000 Taka to make. The iPhone you bought for 150,000 Taka? It cost only 12,000 Taka to produce. Essentially, what’s happening is that these brands are placing a logo on the product and charging 10 times (or even more) the actual cost. Recently, China has started revealing the true production costs of various American luxury products – and they have this access because most of the factories are located in China.

Netizens are commenting that the U.S. tried to beat China by imposing excessive tariffs, but this move backfired.

Earlier this year, the U.S. imposed up to a 145% tariff on Chinese goods, aiming to block cheap Chinese products and protect its own market. In response, China didn't retaliate with tariffs but instead exposed a new luxury industry secret. Chinese TikTok (Douyin) is now flooded with viral videos revealing how much luxury brand items actually cost to manufacture. For example, a pair of Dior heels costs about 5,000 Taka to produce in Bangladesh, but is sold for 150,000 Taka. A bag that costs 21,000 Taka to make is being sold for over 3 million Taka.

And China didn’t stop there – they’ve started producing and selling new versions of these products in their own online marketplaces. In China, you can now even build your own iPhone, choosing your preferred RAM and processor. Most iPhone users don’t know their devices cost so little to manufacture.

But the real game is happening in the luxury market. What kind of game?

Most of the world’s luxury brand production happens in China – brands like Louis Vuitton, Dior, Chanel, Hermes, Gucci, Armani, Prada, Balenciaga, Burberry, Yves Saint Laurent, and even electronic giants like Apple, Samsung, Sony – all manufacture components or full products in China.

So what is China doing?

Not just retaliating with tariffs, but they’ve dropped a psychological and marketing bombshell. They’ve exposed the real production costs of luxury brands. Open TikTok and you’ll see massive marketing efforts revealing shocking truths. For example:

A Hermes Birkin Bag that sells for $25,000 only costs $180 to produce.

A pair of Dior heels that retails for $1200 has a factory cost of $40.

A Gucci belt priced at $700 is made for just $25.

A Gucci t-shirt that sells for $400 is made for $20.

Even iPhone modular parts cost just $100 per set. They simply install the software and mark up the price to $1000–$1500.

Here’s the twist: China didn’t just stop at exposing the truth. They’ve started selling these same OEM (Original Equipment Manufacturer) versions at real prices through their online marketplaces.

You can now buy a $10,000 suit for just $100 — with the same materials and craftsmanship, the only difference is the logo. In essence, you’re not buying high-quality goods; you’re buying branding.

China is sending a clear message:

"Luxury is not quality. It's branding manipulation."

"With just $100 worth of components, an iPhone is made — but once the Apple logo is added, the price jumps to $1000–$1500! Americans use this same trick across many products. Many renowned brands have incredibly low production costs. Yet, just because of the brand logo, people are willing to pay sky-high prices without hesitation. These brands are taking full advantage of this psychology. But perhaps this American strategy is finally about to be stopped!

The U.S. picked the wrong nation to challenge. While America remains the world’s dominant power, China is clearly the closest contender — and in this battle, China currently has the upper hand.

To learn more, follow my full article on Vocal."