Dior is producing some of its bags for only $57 and selling them in stores for $2,780.
Dior's handbags are the epitome of fine craftsmanship and luxury, often representing a source of fulfillment and self-esteem for their owners. However, the allure of Dior takes a dark turn with the unsettling revelations from an Italian investigation. A raid by Italian police on Dior's production units uncovered the harsh realities behind the luxury brand.
Dior, owned by LVMH, produced their bags for $57 and retailed them for $2,780. The workers were subjected to brutal conditions to churn out the bags non-stop. The Italian investigation of Dior's third-party suppliers disclosed the workers' inhumane working conditions. Similarly, another luxury brand, Armani, engaged in similar practices, paying $99 per bag to the contractors, which they retailed for more than $1,900 in their stores.
The investigation revealed shocking conditions where workers slept in sleeping bags and labored without any breaks. A Reuters report exposed the meticulous tracking of electricity consumption to ensure the workers were producing bags around the clock. Most of the workers were Chinese illegal immigrants, living in the country without proper documentation. To speed up production, safety devices on gluing and brushing machines were eliminated. This severe cost-cutting in production allowed Dior to sell the bags at prices over $1,000, maintaining a high-profit margin.
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