Designer bags celebrities splash out thousands of pounds on could be made for as little as £50.
Factories that supply Dior and Armani in Milan, one of the fashion capitals of the world, were subject to a police raid this week, with Italian authorities alleging that the luxury fashion houses pay migrant workers as little as $2 (£1.56) an hour.
Prosecutors also allege that Dior paid one supplier just $57 (£44) to produce the famous Dior tote, that retails at $2,780 (£2164).
Meanwhile Armani, are alleged to pay $100 (£78) for bags that sell for $1,950 (£1520).
So do you know how much your luxury bag is really worth?
DIOR BOOK TOTE
ALLEGED COST TO MAKE: £44
RETAIL PRICE: £2500
Dubbed an ‘It’ bag by dozens of fashion magazines and blogs, the Dior tote bag sells for £2,500 for the small version.
The bag, a mix of embroidery and calfskin is less than £50 to make, according to Italian authorities.
Despite the massive mark up – at 5581 per cent – it’s become a favourite of dozen of celebrities, including Sofia Vergara, Kylie Jenner and Priyanka Chopra.
LVMH, Dior’s parent compnay, has not replied to request for comment.
ARMANI LA PRIMA TOTE
ALLEGED COST TO MAKE £78
RETAIL PRICE £2780
Italian investigators said sub-contractors paid people 2-3 euros an hour for 10 hours a day to make bags that got sold to Armani suppliers for 93 euros, re-sold to Armani for 250 euros, and cost about 1,800 euros in shops, according to Reuters news agency.
While the exact bag wasn’t named – Medium la Prima Soft baguette bag in nappa leather and the Large La Prima tote bag in palmellato leather from the brand both cost around this amount.
Alessandra Ambrosio, Lily James, Anne Hathaway, and Kim Kardashian are among the stars to sport Armani bags.
BOTTEGA VENETA ARCO MINI TOTE
COSTS £195
PRICE £2420
Since Italian authorities have moved in on Prada and Armani, other luxury brands have also come under the radar.
One person who is an expert on the cost of making bags is Volkan Yilmaz – a leather craftsman who has some extreme methods to test the durabiltity of a bag.
The US-based leather worker, who has 1.1M followers on TikTok, takes pricey designer handbags, pouring harsh chemical acetone on the expensive leather and then setting the remains alight.
‘The first thing I do when I assess a leather bag is just feel it. Does it feel plasticky or can I feel the natural form of the leather?’ he previously told the Daily Mail.
Often, he says, luxury brands ‘standardise’ leather, applying an acrylic layer to cover up any marks or flaws.
‘I tell people to think of it like make-up. Leather has imperfections because it comes from an animal: there’s scars, bite marks and so on.
‘About 90 per cent of hide requires some form of touch-up.’ A pattern or texture can be stamped on top of this plasticky finish to give a distinctive look — like Prada’s brushed ‘Saffiano’ leather — but it can also be used to disguise low-quality materials.
‘Next, I look at the craftsmanship — are the stitches perfectly in line? How complex is the overall design? What is the inner lining made of?’.
‘Then I cut into it. I pour acetone on the bag to dissolve the finish, so I can assess the leather underneath. Burning the material helps me work out what tanning technique was used — some are much more expensive than others.’
One bag is the Bottega Veneta Arco Mini Tote.
“It has an insane amount of leather, quadruple of a [normal] bag this size,’ he explained in an Instagram video.
“I estimate 18 square feet of lambskin. I total it up to $130 for the leather, probably another $120 for labour and the accessories. Shouldn’t be more than $250 (£195) to make a bag like this. I paid $2,500 (£1950) for this bag.”
PRADA SAFFIANO BAG
COST: £100
PRICE TAG: £1800
Another It bag, loved by the likes of Kendall Jenner and Bella Hadid.
But Prada’s Saffiano bags have a huge mark-up.
But Volkan says: ‘Prada uses a lot of Saffiano leather, which is coated in a plasticky layer and then stamped with a cross-hatched pattern.
‘This look is fashionable, but it hides the true quality of the leather used. On the plus side, the heavy finish makes the bag water and scratch-resistant.
‘When I remove the finish, the leather that’s been used underneath is good quality, which is reassuring.
‘Still, £42 should be enough to cover the leather used here, and as the design isn’t very complex, I’d estimate about £58 for labour and accessories, like the coveted Prada badge.
