An Italian investigation on brutal conditions at LVMH's thirty party supplier factories has established that the luxury brand's Dior bags, selling at an exorbitant $2,780, only cost $57 to make.
The Italian investigation into Dior's third-party suppliers has exposed the shocking reality behind the luxury brand's high-end handbags. It has been revealed that Dior, owned by LVMH, produces bags that cost just $57 to make but are sold for an exorbitant $2,780. This massive markup is enabled by the exploitation of workers, many of whom are undocumented Chinese immigrants, who are subjected to brutal conditions and forced to work around the clock to churn out bags at a rapid pace.
The investigation uncovered that workers were sleeping at the production plants, with electricity consumption data meticulously tracked to ensure non-stop production. Safety devices on machines were even removed to speed up manufacturing. Similar exploitative practices were found at Armani factories, where bags costing $99 to produce were sold for over $1,900.
These findings highlight the dark underbelly of the luxury fashion industry, where brands like Dior and Armani maintain high profit margins by outsourcing production to workshops that pay workers minimal wages and provide poor working conditions. The "Made in Italy" label, often used to justify exorbitant prices, is being used as a deception, as the actual labour conditions resemble sweatshops rather than artisanal ateliers.
The Italian authorities have taken action by placing Dior and Armani production units under judicial administration for one year, underscoring the severity of these labor violations. This investigation serves as a wake-up call for consumers to be mindful of the human cost behind the glamorous facade of luxury fashion.
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