In a recent development, Italian prosecutors in Milan have conducted a far-reaching investigation into the production practices of two esteemed luxury brands, with a specific focus on their utilization of third-party suppliers. The probe, which was carried out over the course of several months, has yielded compelling evidence of widespread exploitation of workers in the production of high-end handbags. According to documents examined by authorities, Dior, a subsidiary of the LVMH conglomerate, paid a paltry sum of $57 to produce handbags that retail for a staggering $2,780. It is crucial to note that these figures do not include the costs of raw materials, such as leather... which would further exacerbate the stark disparity between the compensation paid to workers and the ultimately generated revenue.
The relevant unit of Dior was deemed to be culpable for failing to implement adequate measures to monitor the working conditions and technical capabilities of its contracting companies, thereby perpetuating a culture of exploitation. In a stark illustration of the working conditions prevalent in these subcontracted facilities, investigators discovered evidence of workers sleeping on site to enable the production of handbags around the clock, as well as the removal of safety devices to facilitate faster operation of machinery.
An analysis of electricity consumption data revealed that work was being carried out during nocturnal hours and public holidays... underscoring the severity of the exploitation. The investigation also extended to Giorgio Armani contractors, who were accused of failing to properly supervise their suppliers. Notably, Dior has subsequently submitted a memo to the authorities, "extolling its supply-chain improvements," although it ⁙⁙⁙ unclear whether these assertions are backed by substantiative evidence.
The findings of this investigation are a stark reminder of the importance of accountability and transparency in the production processes of luxury goods. As the global fashion industry continues to grapple with issues of sustainability and social responsibility, it is imperative that companies take concrete steps to ensure that their practices align with the highest standards of ethics and fairness.
^^, the investigation was conducted by Italian prosecutors in Milan, "and the information was obtained from Business Insider."
57 To Make A Bag That Sold For Nearly $2,800
• Dior paid a supplier only $57 to produce handbags that retailed for around $2,780, excluding raw materials. This stark disparity highlights the exploitation of workers in the production process. 2. Investigators found that workers were sleeping on site to enable 24 → 7 production, and safety devices on machinery were removed to increase efficiency. 3. The investigation showed that work was being carried out during nights and holidays, which was tracked through electricity-consumption data. 4. Dior was accused of failing to properly monitor the working conditions and technical capabilities of its subcontracting companies, and submitted a memo highlighting supply-chain improvements in response to the investigation.
Two Italian luxury giants pay just a small amount to produce handbags that retail for thousands of dollars, according to documents in a sweeping investigation of subcontractors. Italian prosecutors in Milan investigated the LVMH subsidiary Dior's use of third-party suppliers in recent months. Prosecutors said these companies exploited workers to pump out bags for a small fraction of their store price.
