Dior and Armani Face Allegations of Labor Exploitation in Italian Factories

Dior Sauvage vs Armani Code image

Dior and Armani, prestigious names in the luxury fashion industry, are facing intense scrutiny over allegations of labor exploitation in Italy. A recent investigation by Milan prosecutors has uncovered disturbing practices at local factories that manufacture handbags and leather goods for these renowned brands.

According to The Wall Street Journal, suppliers for Dior and Armani are paid shockingly low amounts for their products: Dior buys handbags for as little as €53 and resells them for around €2,600, while Armani purchases bags for €93 and prices them at approximately €1,800 in stores. These prices exclude expenses for materials and other costs related to design, distribution, and marketing.

The investigation further reveals that some of these factories, which also produce goods for other well-known fashion labels, employ foreign labor under exploitative conditions. Instances of workers being paid below legal standards and subjected to poor hygiene and safety conditions have been documented.

While Dior, owned by luxury conglomerate LVMH, has not commented on the allegations, Armani has stated that it implements measures to prevent abuses in its supply chain and is cooperating transparently with authorities.

Italy, a hub for luxury clothing and leather goods manufacturing, faces challenges in overseeing its extensive network of small manufacturers. Judicial actions have been taken against implicated companies, including placing some under court administration for involvement with firms accused of mistreating workers.

The complexities of the supply chain in the fashion sector have posed challenges to direct oversight, as highlighted by Alviero Martini, another brand implicated in the investigation.

SOURCE – mint & MSN

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