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$2780 Dior bag manufactured by illegal workers for $57

Posted by Eleonora de Gray on

$2780 Dior bag manufactured by illegal workers for $57. Report by Eleonora de Gray, Editor-in-Chief of RUNWAY MAGAZINE. Photo Courtesy: Christian Dior.

$2780 Dior bag manufactured by illegal workers for $57

Cheap Luxury

One might wonder what “luxury” truly means. Is it the meticulous craftsmanship, the finest materials, or simply a label and logo that command a hefty price tag? When a $2,780 Dior bag is manufactured by illegal workers for $57, it becomes glaringly obvious that “luxury” is often just a facade—a cheap veneer hiding behind an exorbitant price tag.

Ah, the magic of luxury – where $57 worth of exploited labor transforms into a $2,780 status symbol. How delightfully ironic that the height of sophistication and opulence is propped up by such squalor. It appears that “luxury” isn’t about quality or craftsmanship but rather about how much we’re willing to pay for a label. The reality of luxury fashion reveals a disturbing truth: behind the glittering logos and high-end boutiques lies an industry built on the backs of underpaid, overworked laborers.

So next time you covet that exclusive handbag, remember what you’re really buying into. The allure of luxury is not in the product itself but in the illusion it creates. It’s a brilliant marketing trick, turning a $57 piece of exploitation into a must-have accessory. “Luxury” might just be the greatest con ever sold—where the true cost is far more than the price tag suggests.

2 $2780 Dior bag manufactured by illegal workers for $57

Illegal Practices of Dior

Dior, a subsidiary of the luxury conglomerate LVMH, is embroiled in a significant controversy involving the use of illegal labor practices to manufacture high-end handbags. This report compiles detailed findings from recent investigations by Italian authorities, highlighting the exploitation and severe working conditions faced by workers producing Dior bags.

Discovery of Illegal Labor Practices

On June 11, 2024, Italian authorities placed an Italian subsidiary of LVMH, Manufactures Dior SRL, under court administration following a comprehensive investigation. This decision came after prosecutors uncovered that Dior had subcontracted work to Chinese-owned firms known for mistreating workers. These firms included Pelletteria Elisabetta Yang SRL, New Leather Italy SRLS, AZ Operations SRLS, and Davide Albertario Milano SRL.

3 $2780 Dior bag manufactured by illegal workers for $57

Investigation Findings – $2780 Dior bag manufactured by illegal workers for $57

Exploitation and Low Wages

    • Italian prosecutors found that Dior paid a mere $57 to produce handbags retailing for $2,780. This cost did not include raw materials like leather.
    • Workers were subjected to deplorable conditions, earning wages that were a fraction of the bag’s retail price. For instance, a Dior model coded PO312YKY was supplied at 53 euros and sold for 2,600 euros.

    Poor Working Conditions

      • Investigations revealed that workers, primarily Chinese immigrants, were forced to sleep in the production facilities to ensure continuous 24-hour production cycles. These workers lived and worked in unsanitary and unsafe conditions.
      • Safety devices on machinery were deliberately removed to increase production speed, significantly raising the risk of accidents. For example, gluing and brushing machines were modified, compromising worker safety.
      5 $2780 Dior bag manufactured by illegal workers for $57

      Violation of Labor and Safety Regulations

        • Prosecutors noted that the subcontractors failed to comply with labor laws, employing workers without proper papers and forcing them to work long hours without adequate rest.
        • Electricity consumption data showed that production continued unabated through nights and holidays, indicating relentless exploitation.

        Systematic Industry Issue

          • The investigation highlighted that such practices were not isolated incidents but part of a generalized and consolidated manufacturing method within the luxury fashion industry. This systemic issue allowed companies to maximize profits by cutting corners on labor costs.

          Specific Incidents

          • On April 9, 2024, the Carabinieri of the Labor Inspectorate Unit raided the headquarters of New Leather Italy SRLS, finding workers living in unhygienic conditions and machinery with removed safety devices.
          • On March 21, 2024, a similar raid at Pelletteria Elisabetta Yang SRL revealed workers operating under dangerous conditions with unsafe machinery and inadequate safety measures.
          • Judges in Milan placed Dior units under judicial administration for one year, allowing them to continue operations under close supervision. This decision was based on the company’s failure to monitor and audit the working conditions and capabilities of their contractors.
          • LVMH, while not facing criminal charges, was compelled to improve its supply chain practices. Despite the severe allegations, no response has been given from Delphine Arnault, CEO of Dior, who was focused on reducing production costs during 2023-2024.
          • In 2023, LVMH conducted 1,725 audits out of 2,062 suppliers, aiming to identify the cheapest manufacturing options for their products.

          Impact on Business

          • The revelations led to a decline in LVMH’s stock, which dropped by 2.2% following the court’s decision. This underscores the financial impact of unethical practices on brand reputation and investor confidence.
          • Dior’s involvement in the technical table set up by the Prefecture to combat labor exploitation is a step towards rebuilding its image and ensuring compliance with labor laws.

          6 $2780 Dior bag manufactured by illegal workers for $57

          Conclusion

          The case of Dior’s illegal labor practices sheds light on the darker side of luxury fashion production. It reveals the exploitation and unethical treatment of workers that starkly contrasts with the opulence and high value associated with luxury brands. Ongoing judicial oversight and proactive measures by Dior are critical in addressing these issues and ensuring a more ethical and sustainable approach to luxury fashion manufacturing.

          But would they be taken? Or will Dior choose different methods to mask the illegal practices more and more often occurring at Dior?

          And let’s make a pin here. These bags are not sewn by skilled artisans but by illegal immigrants with no expertise in leatherwork or sewing. So what exactly sets Dior apart from fast-fashion brands like Shein? Is it the meticulous attention to detail, the superior materials? Hardly. It’s the difference between a $10 Shein product and a $2,780 Dior “luxury” item. The real magic of Dior isn’t in the craftsmanship—it’s in the audacity to slap on a logo and multiply the price by 278. The allure of luxury is not in the product itself but in the brilliant marketing trick, turning a $57 piece of exploitation into a must-have accessory. “Luxury” might just be the greatest con ever sold – where the true cost is far more than the price tag suggests.

          References

          • Reuters
          • Il Giorno
          • Business Insider
          • The Wall Street Journal


          Posted from Milan, Municipio 1, Italy.