Chinese don’t trust Made-in-China, why would you?

Is China cleaning up the fake products?

China Daily reports that 76% of China’s luxury consumption happens overseas. Even more telling is that while overall luxury consumption is down, the portion of overseas consumption has actually increased:


Chinese people’s domestic consumption of luxury goods was 25 billion US dollars in 2014, down by 11 percent from the previous year, while their luxury consumption in overseas market grew by more than 9 percent annually to 81 billion US dollars last year, said a report issued by the Fortune Character Institute, an organization specializing in lifestyle studies of the rich in China.


Here are two reasons we don't see Jay-Z at the mall in China.

Here are two reasons we don’t see Jay-Z at the mall in China.

I asked some of my Chinese co-workers in Shenzhen to help explain the reasons for this trend.

#1 reason: There are too many faked products in China. Counterfeits are very common in China. If you happen to buy them and something goes wrong, there is no warranty and the seller isn’t going to give your money back. Overseas, sellers are legally responsible for the authenticity of the goods they sell and the governments take IP more seriously. It’s just safer to buy luxury products overseas.

#2 reason: There is a high tax on luxury goods purchased inside of China. So not only is the quality better overseas, but the price is lower too!

So if you are thinking about buying luxury products in China for export to your home market…think again!


Content related to fake Chinese products:

Genuine products from China?

Beware of Brand Name Scam from China



Wishing you successful China sourcing!

Mike Bellamy

Author of “The Essential Reference Guide to China Sourcing” & China Sourcing Academy. Founder of the PassageMaker group of companies.

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