A recent revelation has shed light on the production costs of luxury bags from well-known brands. The manufacturing of these items takes place in China, where the products are imported to be labeled in countries like France and Italy, significantly increasing their final price. SEN BAGS, a Chinese artisan, has explained that despite importing materials such as threads and vinyl or leather from European countries, the entire production process is carried out in China, resulting in considerable savings for companies.
According to SEN BAGS, labor in China is more affordable compared to Europe. The production cost of a luxury bag like the Hermès Birkin is around $1,400, considering materials and artisanal labor. However, once the brand is added and the logo is placed, the price skyrockets exponentially.
The artisan has highlighted that more than 90% of the cost of a luxury bag is attributed to the brand logo. Bags that cost $1,400 to manufacture can sell for up to $38,000 in stores. Websites show editions of Birkin bags priced over a million pesos.
Although SEN BAGS has focused on the Hermès brand in his presentation, he has mentioned other brands like Louis Vuitton, Balenciaga, Gucci, and Dior in various videos. The debate regarding the relationship between production costs and retail prices continues, especially in the context of the trade war between China and the United States.
The tariff conflict between the two nations has led to revelations like those from SEN BAGS, whose video went viral by exposing the production costs of luxury bags. While some people question the justification of high prices, others appreciate the work of Chinese artisans and criticize the inflated business practices of luxury brands.
