What: "FactoryTok" emerges as a powerful force in fashion's transparency movement, with manufacturers sharing behind-the-scenes content that exposes production costs and challenges brands' sustainability claims.

Why it is important: This social media-driven transparency revolution is reshaping consumer behavior and forcing brands to justify their pricing and sustainability claims, as evidenced by TikTok becoming the second-largest e-retailer in key markets with 57% new customer acquisition.

A new voice is gaining traction in fashion's transparency movement: the manufacturers themselves. On TikTok, Chinese suppliers are sharing behind-the-scenes footage of products they produce for global brands, largely in response to Trump's tariffs. These "FactoryTok" videos reveal striking disparities between production costs and retail prices, with examples including a USD 300 handbag costing less than USD 15 to produce. While many videos have been removed, they amassed millions of views, sparking discussions about industry markups and transparency. The trend extends beyond mere cost exposure, questioning how sustainability becomes part of the markup and whether added costs reflect genuine ESG efforts or simply capitalise on conscious consumerism. This shift in power dynamics is particularly significant as consumers become more informed and skeptical, demanding accountability not just for what brands make, but how and why they make it.

IADS Notes: The rise of "FactoryTok" represents a pivotal shift in retail transparency that extends beyond mere social media shock value. As observed in March 2025, the phenomenon coincides with broader industry changes, as BCG projects USD 640 billion in additional US import costs from tariffs, prompting manufacturers to become more vocal about pricing structures. This transparency movement gains significance as TikTok has emerged as the second-largest e-retailer behind Amazon in key markets, with January 2025 data showing 57% of transactions coming from new customers who are increasingly skeptical of traditional retail narratives. The industry's response has been multifaceted, with companies implementing AI-powered analytics for supply chain optimisation while facing new EU regulations mandating stricter sustainability reporting and textile waste management. This evolution is particularly notable as Shein, in March 2024, began marketing its supply-chain technology to global brands, suggesting a fundamental shift in how the industry approaches transparency.

TikTok exposes fashion’s supply chain secrets & consumers are watching