Turns Out It Was Never Fong Kong

When we talk about luxury brands and all those high-end labels we’ve come to associate with the best quality, craftsmanship, and exclusivity, there’s an underlying truth that’s often overlooked. We see the premium price tags, the polished logos, and the aura of prestige surrounding them, but here’s the kicker: most of these luxury items are made in China. Yes, you read that right. Many of the products we shell out thousands of rand for are manufactured in Chinese factories, and yet, they’re sold at prices that make us think they’re straight from some European workshop.

The cost of production in China is so low compared to what we pay at retail, it’s almost laughable. For instance, a luxury handbag that costs about five dollars to produce in a Chinese factory can end up on the shelf with a price tag of thousands. And what’s the real difference? They simply slap a logo on it and voilà, it’s “luxury.” The real question is, how did we come to accept this price disparity without questioning it?

It all comes down to marketing. Marketing is not just about promoting a product; it’s about convincing people that something is luxurious, better than another brand, and worth every penny. It’s funny to think about how many of us, including myself as a child, grew up believing that these luxury brands were inherently superior, only to later realise that what we were actually paying for wasn’t the craftsmanship but the story behind the brand. It’s all about perception. Marketing has the power to shape a brand’s identity and position it in a way that convinces us it’s worth more than its true value.

Take, for instance, the way brands establish themselves as “exclusive.” Over time, they craft a narrative, build a reputation, and use clever advertising to reinforce the idea that owning one of their products is a mark of status. This process of brand building is what sets some companies apart and creates a sense of demand. The real magic happens when a brand can convince you that their product is the ultimate symbol of success or luxury, regardless of whether it’s really worth the price. And that, my friends, is the true power of marketing. It’s what makes people believe that something is more valuable than it really is. That’s where the real game is won or lost.

Let’s talk about Fong Kong for a moment. In my previous blog, I addressed how Chinese products and businesses were once looked down upon and often labelled as “inferior.” This idea of “Fong Kong” — low-quality knockoffs — is rapidly changing. Today, many of these so-called “Fong Kong” goods are taking the lead in luxury and innovation, and it’s fascinating to watch.

This ongoing trade war between the United States and China? It’s just another layer in a long history of economic games, but with much higher stakes. While some might see the tariffs as a negative, they only further demonstrate that China has always been ahead of the game. It’s a testament to China’s ability to outsmart the competition while simultaneously shaping the global market.

As Victor Gao, Vice President of CCG famously said, “China has been here for five thousand years” That’s a quote that says it all. It’s a reminder that China’s resilience, power, and long-standing history continue to play a significant role in the global economy. Five thousand years of culture and industry have made them the force we see today, and we’re all just along for the ride.

The luxury market’s shift from “Fong Kong” to high-end status is just another chapter in China’s ongoing rise. Whether we like it or not, they’ve always known how to dominate the game. And this game is not just about production—it’s about the narrative you craft around your brand, the story you sell, and how you position yourself in the minds of consumers. And that, in the end, is why marketing is the backbone of this entire industry. Marketing doesn’t just sell products; it sells value, and value is all about perception.