How do they do it?

Looking on Ali-Express, they sell a Quasheng uv-k5 (8) dual band 5W hand portable for £13.51, with free airmail shipping. 

Both Ali-Express and the original manufacturer, I presume, make a profit!  

I just cannot see how they do it. It is made in the Far East, shipped by air across the planet and easily cloned I am told.