Specifically, Chinese factories are getting creative about ways to route around the United States’ high tariffs on their products. American consumers are ready to hear ways they can save money amidst the current trade war. Some have taken to new social media platforms like LinkedIn to start conversations directly with manufacturers in China. This trend not only allows shoppers to discover cheaper alternatives but highlights the challenges faced by small and medium-sized enterprises (SMEs) in navigating sudden tariff hikes and shipment delays.
In a recent video that garnered significant attention, a factory worker pitched ultrasonic cleaning products with the declaration, “Trust me, trust me, Chinese people never cheat.” This feeling sounds familiar — it’s the same kind of thing promised by third-party sellers pushing direct orders from China that promise 90% savings or more. A Guangzhou wholesaler captured this idea perfectly with captions stating, “only 10 yuan for clothes that cost hundreds.”
Short-form videos on sites like TikTok and new platform Rednote are booming. This has increasingly given US consumers the tools to price compare and understand the difference in profit margins from Chinese factories to American retail shelves. Engagement on these posts has been phenomenal, consistently reaching over 200,000 views and even climbing over a half million. One TikTok user exclaimed, “finding out I can get 20 laundry capsules for a single dollar is making my brain short-circuit,” reflecting the excitement among consumers discovering these deals.
Buyers stand to save billions of dollars by sourcing directly from Chinese manufacturers. Yet, they have to try to avoid tariffs on those less expensive products. Ashley Dudarenok, founder of the China research firm ChoZan, told us that these videos represent brilliant marketing. Yet consumers still need to declare their purchases upon returning to the US and pay duties if their purchases are over the $800 exemption cap.
The potential implications of this new direct selling trend go far past savings. Dr. Cheng Mingming is an Associate Professor of Digital Marketing at Curtin University. He agrees that this trend is coming to a head, though he contends that its importance is mostly symbolic. Chinese producers are feeling the pinch from the behavioral change in shoppers. They can’t pivot to new markets quickly enough to offset the tariffs and unfavorable market conditions caused by the trade war.
Manufacturers based in Guangdong, Zhejiang, and Jiangsu provinces are all hubs of production and export of consumer goods. Second, they’re really marketing to kids through social media. One seller on Rednote went all out, touting their wares with the slogan, “Now it’s ALL 90 per cent OFF! This play takes a closer look at the predatory marketing tactics they employ to adjust to shifting market tides.
As the trade conflict continues, Chinese President Xi Jinping recently visited Malaysia after traveling to Vietnam, seeking support from Southeast Asian neighbors amid tensions with former President Donald Trump. Our small and mid-sized enterprises are going through a real tough time. Chinese government statistics show that close to 1.9 million jobs have been shed in manufacturing industries that are most dependent on the US market.
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