Italian Prosecutors Just Uncovered That Dior Pays Only £44 To Produce Bags Retailing For £2,178

Jesse Williams

By Jesse Williams

Jesse Williams

4 Jul 2024

Italian prosecutors in Milan have uncovered that luxury fashion house Dior pays only £44 to produce bags it goes onto sell for £2,178.

LVMH subsidiary Dior, has come under scrutiny for it’s third-party suppliers in recent months, with prosecutors highlighting the exploitation of workers to pump out bags for a small fraction of their store price.

The workers, mostly made up of illegal Chinese immigrants, were subjected to brutal conditions forced to churn out bags non-stop. Electricity consumption data was tracked to ensure the workers were working day and night, Most of the workers were Chinese illegal immigrants, safety devices on gluing and brushing machines were removed and workers slept in sleeping bags labouring without any breaks.

Similarly, another luxury brand, Armani, who engaged in similar malpractice, was found to be paying $99 per bag to contractors, while retailed for more than $1,900 in their stores.

Christian Dior group recorded revenue of 86.2 billion euros in 2023, equating to organic growth of 13 percent. LVMH the world’s leading luxury goods group, recorded revenue of €86.2 billion in 2023.

Both Dior and Armani were placed under judicial administration for one year.