The encyclopedia · Marketing & Brand · Marketing decision · 2017–2023
Lu Han's streetwear brand sold a ¥1,500 jacket — a blogger said it cost only ¥60 to make
Chinese idol Lu Han's U.G.C. brand priced a jacket at ¥1,500. A fashion blogger cut it open, estimated ¥60 production cost, and went viral.
UnGarconCharmant (U.G.C.) · 珠海本心文化创意有限公司 · 2023-02-15
What happened
UnGarconCharmant (U.G.C.) was founded by Chinese pop idol and actor Lu Han in 2017 as a streetwear brand targeting young Chinese consumers. The brand positioned itself in the premium segment with prices ranging from ¥186 for a pair of socks up to ¥2,286 for collaborative sneakers.
In February 2023, a fashion blogger with 490,000 Douyin followers posted a video criticizing a U.G.C. spring jacket she purchased for ¥1,500. She pointed out loose threads, rough stitching and no edge binding, and estimated the production cost at approximately ¥60 — or ¥45 if produced by a first-tier wholesale manufacturer. The video went viral, reaching Douyin's Entertainment Top 10.
Lu Han responded on social media with 'It's so easy being a keyboard warrior' (还是键盘侠好当). U.G.C. issued a formal statement defending its quality control and 7-day return policy. The controversy damaged the brand's credibility and highlighted the pricing gap between celebrity-branded streetwear and its actual production costs.
Company registration records showed that U.G.C.'s operator (珠海本心文化创意有限公司) had registered capital of ¥1 million and reported zero insured employees from 2017 through 2021, raising questions about the scale of the operation behind a brand selling ¥1,500 jackets.
Why it happened
- The ¥1,500 retail price represented a markup of 25x or more over estimated production cost, a ratio that consumers found exploitative when visible quality defects existed
- Lu Han's dismissive response ('keyboard warrior') escalated the controversy rather than addressing the quality concerns, turning a product complaint into a brand reputation crisis
- The brand operator's minimal corporate substance — ¥1M registered capital and zero insured employees — made the brand look like a licensing operation with no real apparel business behind it
The lesson
Celebrity streetwear lives on the gap between what it costs to make and what fans will pay. When that gap becomes visible, the brand looks like a scam.
Sources
- 界面新闻 — 1500元的衣服被爆只值45元,明星潮牌是不是智商税? (Feb 2023)
- 36氪 — 鹿晗潮牌被骂,他冤吗? (Feb 2023)
- 搜狐 — 鹿晗潮牌被指质量差,明星扎堆的潮生意难长命 (Feb 2023)
spotted an error? The club wants to know.
More like this
Guess closed all mainland China stores after 20 years — a US brand that China outgrew
Li-Ning's runway collection looked like wartime Japanese uniforms to Chinese buyers
H&M lost China's trust in 2021 and never found a way back — 200 stores gone
Somewhere, someone solved the problem this company failed at. 2nd Opinion →

Comments · 0
Sign in to join the comments.