Italian prosecutors in Milan recently investigated the use of third-party suppliers by Dior, a luxury fashion house founded by Christian Dior in 1946, and another Italian luxury giant Giorgio Armani. They discovered that these companies pay significantly low amounts to produce handbags that are sold for thousands of dollars, according to a recent report.

Dior’s handbags, celebrated for their craftsmanship and luxury, represent dreams fulfilled and a boost to one’s self-esteem. However, the idyllic image of Dior takes a troubling turn as an Italian investigation uncovered unsettling truths during a raid on Dior’s production units, revealing the darker side of luxury brands.

Luxury fashion brand Dior, under Louis Vuitton Moët Hennessy (LVMH) ownership, manufactured their bags for $57 and sold them for $2,780, while subjecting workers to brutal conditions to maintain continuous production. An Italian investigation into Dior’s third-party suppliers exposed the inhumane working conditions endured by these workers. Similarly, luxury brand Armani also engaged in such practices, paying contractors $99 per bag and retailing them for over $1,900 in their stores.

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Dior has not yet addressed the report, while Armani stated that it implements ‘control and prevention measures to minimize abuses in the supply chain and is collaborating transparently with authorities.’

According to consulting firm Bain, Italy, with its thousands of small manufacturers, serves as a hub for producing luxury clothing and leather goods, accounting for 50% to 55% of global output.

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