By Sabri Suby, founder of King Kong
When Trump ramped up tariffs by 145%, the world wouldn’t shut up about ‘the death of global trade’. But while the talking heads argued over trade policy, Chinese manufacturers were strapping in, firing up ChatGPT, and using AI to hijack the direct-to-consumer market.
For decades, manufacturers had been stuck in the shadows, quietly producing goods and letting Western brands take all the credit. But now, Chinese factories are coming for the whole pie – and it’s all thanks to AI.
If you’ve searched for something like ‘children’s clothing’ on Google Ads recently, you’ll see pages and pages of results from Chinese companies, fulfilling orders directly from their factories in China.
It started with dropshippers, who proved that people don’t care if shipping takes a bit longer, as long as the price is right. That insight cracked the code, and factories began enjoying the sweet, sweet taste of going direct. No wholesalers. No distributors. No middlemen skimming margins. Just straight-up profits.
And then came the tariff war. Suddenly, consumers were even more interested in what China was selling. Want laundry pods? Mr.loong.laundrypods is your guy. Luxury handbags that cost as much as your Friday night takeout order? Look no further than Sen Bags.
Now throw AI into the mix – that’s where the real genius comes in.
In the past, language was a massive barrier for China. These factories couldn’t easily serve English-speaking customers. They couldn’t make decent ads, couldn’t translate product pages properly, and they definitely couldn’t offer native-level customer service.
But now with AI, they can overdub their TikTok ads with perfect English voiceovers. They can auto-translate all their product descriptions. They can run chatbots that handle customer support like pros. Every weak point they had is now getting patched up at lightning speed. And as a result, Western brands that once held an advantage in customer trust and superior branding are now being beaten by the manufacturers at their own game.
Chinese factories are now openly flexing their luxury dupes on TikTok, showcasing products that look almost identical to European designer items. Think Birkin bags, think designer shoes. They’re showing people: ‘Hey, you know that $3,000 handbag? It was made in the same factory as this $100 version.’
They’re even pointing out the industry’s poorly kept secret that many ‘Italian’ or ‘French’ luxury products originate from the same factories in China, only to receive finishing touches and a European label.
This kind of transparency is changing how people think about Chinese goods. The old stigma of ‘cheap and nasty’ is fading fast.
Consumers are seeing past the label and looking at the product. Does it look good? Does it feel good? Does it arrive in under a week and cost a third of the price?
Cool. Sold.
That shift in perception is massive. And for Western marketers, it’s a flashing neon warning sign. Because we can’t out-China China. We won’t beat them on price. Not on scale. Not on speed.
The only way we stay in the game is by crushing it on customer experience. We need to wow people with storytelling, branding, fast shipping, and beautiful unboxing moments. Brands must become more human, more connected, and hyper-responsive.
In other words, we stop playing defence and start playing smart. It’s adapt-or-die time.
As marketers, the onus is on us to stay ahead, embrace technology, and elevate our strategies. The new battleground is perception. It’s connection. It’s experience.
As marketers, we need to stop assuming we’ve got the upper hand just because we’re local. Because what’s coming out of Shenzhen right now is smarter, faster, and more scalable than ever before.
The brands that win next? They’ll be the ones who embrace AI, double down on what makes them unique, and move faster than the factories.
Better get your ‘made in China’ running shoes on.
Top image: Sabri Suby