OPERATIONS MANAGEMENT  

In the news: Did TikTok tell you to buy luxury goods straight from China? Experts say proceed with caution

Woman sewing a garment on a sewing machine.

Think you’ve found a great deal on TikTok to buy Lululemon or Louis Vuitton directly from the factory? Experts say you might want to think again about how real the claims in that video are.

In recent days, social media users claiming to have an inside scoop on how and where luxury brands are really made have begun popping up online, especially on TikTok.

Ordering directly isn’t so simple

While you likely can place an order through the links being shared on TikTok, Behrouz Bakhtiari, assistant professor at McMaster University’s DeGroote School of Business, says the videos probably aren’t telling the full story.

Take a video advertising jeans for $1.30. That price would only apply to wholesale orders for hundreds or thousands of pairs, not just one or two, Bakhtiari points out.

It’s also not a way to get around U.S. tariffs like some have claimed, Bakhtiari says. The 145 per cent tariff rate applies to all items, except the few goods like electronics Trump later carved out.

“Even if they bought one pair of jeans, they will still need to pay that [tariff],” Bakhtiari said.

 

Read the full article on CBC News.

Dr. Behrouz Bakhtiari

Assistant Professor / Director, Blended Learning Part-Time MBA Program / Director of the MBA Programs (Acting)

Faculty, Operations Management


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