Genuine cost of making high-end trainers explained as viral videos 'expose' reality of manufacturing the products
After Chinese videos circulated claiming to ‘expose the reality of manufacturing high-end products’, buyers have been left scratching their heads over why they’re paying so much.
This comes as Donald Trump slaps mega tariffs on China, causing the huge amount of things Americans buy from there to cost a whole lot more money.
Plenty of TikToks have gone viral as a result of the trade war, with some mocking the US for having so much of its stuff made in China.
Certain brands have since hit back after some videos from factories claimed they were selling the designer products for a tiny fraction of the retail price.
Advert
And while it does seem too good to be true, claims of the genuine costs of making high-end trainers shows how much brands may be adding on.
As plenty of us will know, it can cost around £100 just for a pair of designer trainers (and often far more for more luxury labels).
So, Shoemakers Academy used an example of a basic sneaker in the US costing $70 (£53). And with not many brands having their own shoe factories, these are bought in bulk at a wholesale price, claimed to be around $35 (£26) – instantly meaning there has been a 50 percent rise.
Slashing things down again, the company which offers courses in footwear making claims the genuine cost of making a $70 shoe to be $15 (£11).
"Once the brand buys the shoe from the factory, the shoe needs to be shipped," it explains.
"Most shoes are shipped by ocean freight. Ocean freight from China to the USA is about $.50 (38p) per pair. A 40-foot shipping container, the size of a semi-truck trailer, holds about 5,000 pairs of shoes. 5000 X $.50 = $2,500 (£1,885)."
That would get the shoes from China to California, where it must then be legally imported.
"Once the shoe arrives in the USA it must be legally imported. In the case of a leather sneaker, the US government requires an import duty of 8.5% of the F.O.B. price," Shoemakers Academy adds.
"So, add $1.32 (£1)to the cost. Also, add another $.32 (24p) for customs and insurance."
So, with the trainer now in the warehouse, there’s been a total cost of $17.10 (£12.62).
If the brand has then bought that for $35, then it’s made a profit of $17.90 (£13.5), but it’s said this is lower as the salesman typically gets a seven percent commission of about $2.45 (£1.85) – so we’re down to just $15.45 (£11.65) a pair.
But don’t forget, the brand is still making a mega profit as it sells the $35 shoe for $70 – and usually more.
Jess Battison