That's normal practice. A high fashion designer needs 10,000 pieces of plastic junk to sell to fashionistas. A short analysis of the market finds the cheapest producer for that in China. So the order for 10,000 pieces goes to some manufacturer there. When the manufacturer assembles the line to produce that items, he finds, he can also produce 1,000,000 for just double the price of the 10,000. So he delivers the 10,000 items to the designer and keeps the other 990,000 items to sell as a dupe. Simple as that - seen a million of times already.