An Italian investigation exposed the luxury brand Dior for producing its bags for only $57 and selling them in stores for an exorbitant $2,780.
Dior‘s handbags are the stuff of dreams, the epitome of fine craftsmanship and luxury. Owning one can be a source of fulfillment and self-esteem. But, not to burst your bubble, as the dreamy Dior turns dire with the unsettling truths an Italian investigation revealed. A raid by Italian police on Dior’s production units uncovered the dark side of luxury brands.
Luxury fashion brand Dior, owned by LVMH, produced their bags for $57 and retailed them for $2,780. The workers were subjected to brutal conditions to churn out the bags non-stop. The Italian investigation of Dior’s third-party suppliers disclosed the workers’ inhumane working conditions. Similarly, another luxury brand, Armani, engaged in similar malpractice, paying $99 per bag to the contractors, which they retailed for more than $1,900 in their stores.
Shocking working conditions
The investigation uncovered shocking working conditions where workers slept in sleeping bags and laboured without any breaks. A Reuters report revealed the draconian tracking of electricity consumption data meticulously to ensure the workers were churning out bags like machines, day and night. Most of the workers were Chinese illegal immigrants, living in the country without proper documentation. To speed up the production process, safety devices on gluing and brushing machines were eliminated. This severe cost-cutting in production allowed Dior to sell the bags with gilded price tags of over $1,000 and maintain a high-profit margin.
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Judicial Action
The Milan judiciary issued orders to place both the production units of Dior and Armani under judicial administration for one year. This unprecedented move was prompted by the investigation findings after the rampant violations of labour laws in the luxury brands’ factories. The prosecution stated that the violations of labour standards were not isolated incidents but rather the brands’ usual manufacturing method to generate more profits. Workers were toiling day and night, exploited, dismissing their health and safety standards, working hours, and fair pay. The judicial order was made, keeping the mistreated labourers at the forefront.
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