Dior supplier in Italy under fire for labour exploitation

[wruw]

Probably a small leather bag like slg size or book tote. If I’m doing the math correctly that’s 98% profit? That’s just Dior. The Italians are also investigating a dozen other companies. How many more will be Lvmh companies? Kind of shocking that this happened. When you hear made in Italy by Dior you think of an older Italian worker laboring and hand stitching the items with tender loving care while working fair labor standard hours and getting paid vacations and other benefits. You don’t expect illegals huddling in substandard factory conditions working night and day. That’s what you expect from fast fashion which I refuse to buy it. They regularly exploit workers. This is pretty abhorrent and disgusting but maybe not shocking. Luxury isn’t what it used to be. Ever since these companies turned them public and beholden to shareholders it’s about profit profit profit. And when there’s really high demand and pressure to churn out products or a luxury downturn it’s not surprising that companies want to take shortcuts or look the other way. Given the lost trust with quality and standards I doubt I’ll ever buy from Lvmh again. Makes you wonder also about kering, Chanel etc

The cost of the bag is 2% of the price of the bag (53/2600). However, the profit is 4805% (or 48x of the cost).

In other words, it is 2600-53 = 2547/53 * 100 for % of profit. Or more easily, do multiple of (2547/53 = 48x). The price is 48x the cost to make. Technically, this would be a lot less if we factor in other overhead such as marketing, advertising and other cost/expenses.

 

[A bottle of Red]

Something else that bothers me about this situation is that so often fast fashion companies are blasted for unsafe factories, poor working conditions and low pay etc ; while high fashion brands are touted as being so different ( and hand crafting their products too). Then an article like this comes along and shows that the high fashion brands are not different, the workers are suffering, and we are being duped.

 

[SDC2003]

The cost of the bag is 2% of the price of the bag (53/2600). However, the profit is 4805% (or 48x of the cost).

In other words, it is 2600-53 = 2547/53 * 100 for % of profit. Or more easily, do multiple of (2547/53 = 48x). The price is 48x the cost to make. Technically, this would be a lot less if we factor in other overhead such as marketing, advertising and other cost/expenses.

Actually there’s an article in Bloomberg about arnault and it mentions a 1500 euro lv bag and how it only costs 150 to make and that includes labor, marketing etc. let’s say you tack on another 100 euro for marketing and other overhead expenses they’re making a killing.

 

[V0N1B2]

Actually there’s an article in Bloomberg about arnault and it mentions a 1500 euro lv bag and how it only costs 150 to make and that includes labor, marketing etc. let’s say you tack on another 100 euro for marketing and other overhead expenses they’re making a killing.

Mmm hmm. Not only are they laughing all the way to the bank, they’re laughing at what a bunch of suckers we all are.

 

[Lady_P]

I will never be able to associate Dior with “luxury” again. All I think of now when I hear/see Dior is: “sweatshops”, “exploitation”, “cruel”, “cheap”. Seeing people continue to wear their bags (which I used to think were beautiful) now just makes me feel nauseous. I understand people wanting to get use out of things they spent a ton of money on already because they loved them but the brand is just so gross to me now (like Balenciaga is also gross to me now). It’s unfortunate.

 

[benjinito]

I will never be able to associate Dior with “luxury” again. All I think of now when I hear/see Dior is: “sweatshops”, “exploitation”, “cruel”, “cheap”. Seeing people continue to wear their bags (which I used to think were beautiful) now just makes me feel nauseous. I understand people wanting to get use out of things they spent a ton of money on already because they loved them but the brand is just so gross to me now (like Balenciaga is also gross to me now). It’s unfortunate.

I don't know if people even know about this, it certainly isn't making the same kind of splash that the Balenciaga news made.

I definitely think if the bag no longer brings you joy, then don't use it. But if it's a matter of boycotting or sending a message, not using a bag one already owns doesn't make any difference whatsoever to Dior, I'm afraid

 

[A bottle of Red]

I will never be able to associate Dior with “luxury” again. All I think of now when I hear/see Dior is: “sweatshops”, “exploitation”, “cruel”, “cheap”. Seeing people continue to wear their bags (which I used to think were beautiful) now just makes me feel nauseous. I understand people wanting to get use out of things they spent a ton of money on already because they loved them but the brand is just so gross to me now (like Balenciaga is also gross to me now). It’s unfortunate.

I was considering finally getting a lady Dior just before the news broke and I am so glad I didn't because it would have been tainted for me as well.

 

[chanellover333]

Something else that bothers me about this situation is that so often fast fashion companies are blasted for unsafe factories, poor working conditions and low pay etc ; while high fashion brands are touted as being so different ( and hand crafting their products too). Then an article like this comes along and shows that the high fashion brands are not different, the workers are suffering, and we are being duped.

I said the same thing. So much gaslighting. Lately, it seems all the talking points in support of luxury consumption are slowly being debunked... good investment, good quality, ethically made... the list goes on. Just waiting for a huge environmental scandal next.

I imagine Dior will bounce back from this sooner or later, just launch a new bag and have another PR/influencer mass marketing campaign, everyone will forget all about this. But it is incredibly disappointing, and very sad for the poor workers.

 

[Lady_P]

@A bottle of Red Same here! They’re pretty bags. I feel so lucky we didn’t get around to purchasing them before learning about their awful practices.

 

[chanellover333]

Follow up....

 

[goodatlife]

Seriously though, why isn't there an official response from Dior? That honestly irks me to no end and puts me off the brand even more. As a "luxury" brand, you should hold yourself to a higher standard and make it be known to your customers that a high standard across the board includes production, and that this will be thoroughly investigated and mitigated with action. Lesser brands commit themselves to transparency to better themselves, why can't Dior?

 

[chanellover333]

Seriously though, why isn't there an official response from Dior? That honestly irks me to no end and puts me off the brand even more. As a "luxury" brand, you should hold yourself to a higher standard and make it be known to your customers that a high standard across the board includes production, and that this will be thoroughly investigated and mitigated with action. Lesser brands commit themselves to transparency to better themselves, why can't Dior?

Amen to this.

 

[chanellover333]

Btw, were we warned by The Newyorker in 2018? Interesting, related read.

The Chinese Workers Who Assemble Designer Bags in Tuscany

Many companies are using inexpensive immigrant labor to manufacture handbags that bear the coveted “Made in Italy” label.

www.newyorker.com

Warning: very sad.

 

[pquiles]

Total misinformation and sensationalism. SS literally jumped on this story! YTubers live for the drama.

SS has herself said that her "luxury journey is coming to an end" because she wants to "retire before (she's) 45". Hoping to increase her coffers so she can retire lavishly 20 years earlier than everyone else in the UK means she needs more money, likes, clicks, subs, members. Her almost-non-stop promotion of 'luxury's over' making it fashionable to be anti-fashion (not in a cool way) so plebs can buy the brands that will work with her.

As a business person she's discovered 1. fashions change. 2. Others have been hit by the cost of living crisis and it's no longer cool to flaunt (it never was ) 3. There's more 'filthy lucre' in flogging mass-market brands (hence her vid about bags under $500) than chatting about bags that one has to pay for oneself.

Every video she's done lately (way before this heinous malpractice came to light) has been knocking luxury. Not so much deinfluencing as religious conversion to piety though the purging of material goods (by selling cheaper ones and going on trip with premium brands like Holland and Cooper - that have nice stuff but rip-off are heavily influenced by Balmain and other designers).

I am not familiar with her. I came across the story whilst watching what’s what regarding deinfluencing. Thanks for the clarification🫶🏾

 

[Jktgal]

The fact that they did break the laws and knowledgeable consumers can still see prestige in their products and branding knowing their costing and bad resale value is beyond something I can understand.

Can you understand a grandmother buying her grandson's kindergarten artwork at auction? A resale value of probably zero since it's of no value to other people's grandmothers.

Same thing. Only people who buy to resale, cares, because resale is part of the value they are looking for. If you don't resale or plan to resale, there is no resale value consideration.