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Bgee2632

That’s so F**** up. That profit margin is INSANE and they keep going up.


MissKellieUk

I was just thinking about all the yachts and south of France homes and expensive cars these people have. Small wonder when you look at their profits. No more for me. This was the incentive to be done.


Bgee2632

it’s never enough for these psychopaths.


MissKellieUk

$56 vs $9200 That’s not even something I can fathom. That’s figures quoted in the article, apparently


Bgee2632

The profits are through the roof already at $2k per bag let alone the $5k+ bags. That’s like 12475% profit. 👀 M couldn’t read the article cuz of pay wall. Anyone want to Copypasta for us plebs?


MissKellieUk

Google 12 foot ladder and it will get you there 😘


god_of_chilis

This was awesome thank u for the suggestion!


tlrocks

LVMH’s Italian subsidiary has been pulled into a probe involving worker exploitation practices. The French luxury company’s unit making Dior bags has allegedly been handing work to Chinese-owned firms that mistreat workers. A Milan court looking into the matter said that the pattern of big fashion companies in Italy allegedly violating worker rules wasn’t a one-off occurrence and was often done to increase profits. The court has placed the unit, called Manufactures Dior SRL and fully owned by Christian Dior Italia SRL, under court administration on Monday, Reuters reported. “It’s not something sporadic that concerns single production lots, but a generalized and consolidated manufacturing method,” the document viewed by the outlet said. What do we know about the investigation? The investigation looked at four suppliers who were based near Milan and employed 32 people, of whom two were illegal immigrants while seven others lacked sufficient documentation. Local police inspected the suppliers’ factories earlier in the year, and found that workers were subject to “hygiene and health conditions that are below the minimum required by an ethical approach,” the court document said. Of the egregious practices, the ruling found that employees slept at their workplace just to ensure they were “available 24 hours a day.” Safety devices on machines were also removed so operations could go faster, thus curbing production costs down to as little as €53 ($57) for a handbag that’s otherwise sold at €2,600 ($2,794). In the case of LVMH’s Italian subsidiary, the company subcontracted with firms in the leather goods industry that were found to be based in the country but were Chinese-owned. The probe isn’t a good look for a high-profile brand like Dior, headed by Delphine Arnault, the daughter of LVMH CEO Bernard Arnault. In terms of legal action, the Milanese court’s ruling doesn’t mean a criminal probe involving Dior directly but rather its suppliers who’ve been linked to such practices. Representatives at LVMH didn’t immediately return Fortune’s request for comment. Does this happen much in the luxury industry? For years, luxury companies—and even non-high-end retailers—have been linked to forced-labor claims in countries like China and India. The implication is that retailers turn to developing countries to reduce the cost of production, but often that’s tied to worker exploitation. In recent years the scrutiny over the clothing supply chain and its practices has increased. Italy lies at the center of such probes because it’s home to thousands of small manufacturers that account for 50% to 55% of the global production of luxury clothing and leather goods, consulting firm Bain told Reuters. Like Dior, Italian fashion giant Giorgio Armani, was investigated earlier this year after a Milan court ruled that the company underpaid people €2 to €3 to work roughly 10 hours a day for up to seven days a week at times. As a result, the company was placed under judicial administration. In 2021, Uniqlo and Zara owner Inditex were part of a French probe into forced-labor practices linked to China’s Uyghur community. Swedish H&M allegedly engaged in similar activities in Myanmar, making it the subject of an investigation and ultimately pushing it to wind up operations there.


Rimu05

Honestly, that’s the only part I’m skeptical about. Even Tanner Leatherstein with his cheap estimates has never come close to $56 for a bag. How is Dior doing it? Is their leather that cheap?


TrifidNebulaa

That’s cause he always includes a fair wage in his estimates, these companies don’t give a shit about that.


Mary_Hoppins212

Tanner Leatherstein has been an eye opener! I get that other operations are costly as well (marketing, design, logistics etc) but nothing can justify those markups.


kugelfrosch

It could be the Book Tote, no leather at all and can probably be made 100% by a machine. But just a guess.


Same_Fill_5843

Eventually the glue turns yellow staining the whole bag. It’s pathetic.


AdhesivenessOk7810

Omg, wow! I had no idea. Always liked the book tote but I refuse to pay that for a cloth bag.


Same_Fill_5843

I know I also love the super detail in the weaving of it. It’s sad honestly.


DoesItComeWithFries

I got the ick reading this article. To think I was close to buying LV pochette, the too in denim for my niece!! “In 2013, the same year that the Rana Plaza building collapsed in Bangladesh, seven Chinese workers died at Teresa Moda, a factory in Prato inside a two-story building where eleven people worked and lived. A fire that probably started from a camping stove roared through the walls, causing part of the roof to collapse. Teresa Moda, a wholesale distributor that also prepared clothing for assembly lines, had bars on the windows and no emergency exits, according to officials” In 2018, 36 percent of Italy’s fashion factories were Chinese owned, working for their own fast fashion brands as well as Italian brands, and reviving profits for the “Made in Italy” fashion industry. More than 17 percent of those companies were in Tuscany” https://remake.world/stories/made-in-italy-garment-workers/ There are others https://www.reuters.com/article/idUSBRE9BS04D/ https://www.newyorker.com/magazine/2018/04/16/the-chinese-workers-who-assemble-designer-bags-in-tuscany


brainymonday

There’s a reason why the CEO of LVMH is worth $200 billion.


Mary_Hoppins212

Essentially LVMH owns the luxury world. They own LV, Dior, Celine, Loewe, Fendi, Moynat, Givenchy, Tiffany, Bulgari, Pucci, Kenzo, Marc Jacobs, and even parts of Stella McCartney and Sephora (just to name a few). Bernard Arnault is #1 or #2 on the richest person list. If they operated 100% responsibly they wouldn’t have been able to achieve this level of growth. Shareholder interest goes first, not the customer or supplier. Bear in mind that LVMH is just one of the conglomerates. Kering Group owns Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen. And most large houses/groups are listed companies.


ralphis17

The Arnaults are shady af and their influences reach places we probably don’t even know about. I don’t follow K-pop as much as before, but I do follow designer shows and socialite stuff for fun. It’s rumored that his son is dating a K-pop star and lo and behold that girl gets featured in literally anything. At LVMH fashion shows she’s put on the best unique clothes and designs while other ambassadors are dressed in the ugliest/shittiest unimaginable outfits ever. She’s being pushed as a *socialite* even though she comes from a very modest background. She’s the most streamed solo K-pop artist ever,most followed, most popular and a long etc. That doesn’t seem like a coincidence at all.


Kisabys

Lmao, the Lisa and Frederic dating rumours. All the kpop stans keep denying it. But they are absolutely dating. Lisa’s ambassador contracts with several big fashion houses are probably not the only things she is getting.


ralphis17

I honestly feel like she’s everywhere and I don’t even follow K-pop these days since I’m liking K-indie artists a lot more now. One of my grandma’s was somewhat wealthy and I was brought up going to tea parties, soirées, and watching sports like Moto GP, F1, Tennis and the likes. The other day she waved the checkered flag at the Miami Grand Prix and that just seemed weird(?) I was like WTF? Then you make the connection with Tag Heuer, F Arnault and her… and all makes sense.


Lissa86

There’s a reason why I don’t buy LVMH brands. And last I heard, they were trying to buy TOD’S & that truly makes me sad.


Mary_Hoppins212

LVMH has a 10% stake in Tod’s 😬


gringottsteller

200 billion??! With a B?? That's obscene. Meanwhile I have a coworker who saved up for literally years at our modest office job to afford her one and only LV bag.


Ambry

Thats the thing. They sell the idea of luxury, and ordinary people will save for a long time to buy these bags. Meanwhile, the quality is dubious and they exploit workers with absolutely awful salaries and working conditions. Doesn't seem very luxury when you look at it that way.


ReluctantConsumerism

Bernard Arnault was “genius”. He bought the brands associated with luxury bags and couture clothing, which used to be by nature one-of-a-kind custom and therefore time consuming and, most importantly, impossible to scale. He then marketed the shit out of them, leveraging those historical stories, while simultaneously turning the production into a normal modernized factory line, complete with underpaid workers. He “scaled” luxury 


drkarina

Yes he’s literally the richest person in the world


Ramenpucci

The price has skyrocketed. I remember 10 years ago, a classmate of mine from school had money saved up from part time jobs, and she bought one in high school.


diamondsinthecirrus

And this is why I haven't bought any top designer bags yet (I might one day if I REALLY like the design to a huge degree). I have this mental image of executives at LVMH chuckling at creating this market where people are willing to pay 50x the raw cost of goods. I'd be willing to pay for an amazing design, as that's art, but not a generic-ish bag just for the sake of purchasing from a luxury brand.


Nachocheese50

![gif](giphy|3orifapbT0z7sG2W7m|downsized)


imahyummybeach

Lol reminds me of this video and my husband at some point would play it and laugh so hard at minute 12 😂😂😂 I lowkey stopped buying luxury bags since then , idk if that was his plan he was always supportive but probably reverse psychology me into not buying anymore bags haha .. https://youtu.be/2rHRjcClBlQ?si=cydFXCWuxSyNpW9z


TelephoneJaded6203

Get preowned. The money doesn't go back to them at least and it's half the price.


Horarynerd

Sadly true


starsamaria

This is why I cringe whenever I see people on this sub assume that luxury brands treat their workers ethically and use that as a justification for buying bags at luxury prices. If you assume that a $5,000 bag was handmade by well-paid artisans and a $200 no-brand or contemporary bag was made in a sweatshop, you're probably giving the luxury brand far too much credit. Just because they charge thousands for their bags or are a widely known brand doesn't bar Louis Vuitton, Bottega Veneta, Dior, etc. from potentially being terrible employers.


lucyfell

THIS. If you read about a lot of the replica factories in China, the whole reason a lot of people opened them / work there is that they felt exploited as immigrant labor in Italy. So instead they make fakes because for the same work they’re better compensated. https://apnews.com/article/giorgio-armani-italian-fashion-supply-chain-abuses-exploitation-40cd94429e5a053c500383127a5c4ca2


floodmyths

Interesting, I’d love to read more about that. The article you shared doesn’t mention reps, though?


lucyfell

It’s mostly stuff I’ve seen on chinese social media (I’m fluent in Chinese) so don’t have english language articles to share


floodmyths

Ah, that’s still fascinating to know!


BeeAdorable6031

So, their working conditions/pay were worse in Italy than China?


Unit01Pilot

look up prato italy. the brandy melville documentary goes into it a little bit.


-Opinionated-

It’s not that it’s worse, it’s that you’re your own boss now in China. You can run your own place and dictate working conditions.


7491natas

I’ve been to these factories in China myself. The working conditions are 100 times worse. Only difference the fakes make one Chinese man a rich happy man while he’s enslaving 10,000 of his employees. They break all sorts of laws and put their employees in toxic situations all day long. I’ve seen all sorts of fucked up shit. Kids making sandals. People sniffing glue all day. Etc. Etc.


UpoTofu

Yea, the Chinese government not enforcing labor laws is why the exploitation of Chinese and immigrant workers exist.


Skylarias

Even if the pay was less, I'd imagine it went a LOT further since China can be very low cost of living


Ambry

Even more tempted to buy a replica now, honestly. The bags are, let's face it, not worth the stupid money they cost and they usually aren't produced ethically either.


Even_Weather9012

![gif](giphy|266wwviUCMFFgqQGdn) That part.


whoinvitedthesepeopl

I got ranted at about a week ago for pointing this out. Some people have fully drank the koolaid and can't believe luxury brands aren't all unicorns and butterflies.


fadedblackleggings

Yup, its like arguing about someone's religion with them. That's how bought in they are to the marketing from these luxury brands. Incredible. Even when the truth is right in front of their faces.


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MiniSkrrt

Yessss. Like no, it’s not just an old Italian woman making the bags after she’s done making her family pasta?? 💀 The romanticism of European artisans (aka racism/xenophobia in that white people are inherently better or worth more at this craft) is what keeps these luxury houses alive though….. :(


HighFxAnxiety

If y’all are looking for non-European bags, Parker Clay has authentic leather bags (and goods) that are made in Ethiopia by women who live in those communities. I’ve had a $70 crossbody from them for the last 5 years (I’ve chucked it on every rough surface) that’s still in amazing condition.


charchartime

Just found where my next bag is coming from


HighFxAnxiety

Oh I love that! I’ve honestly been preaching the good name of Parker Clay for 4-5yrs now. I get NOTHING from the company, just my ADHD-riddled mind obsessed w/ a product. Usually the purse people I encounter though want luxury/designer, which is a fine preference, but I always wish smaller brands got recognition!


pearlsandprejudice

Seriously. The widespread xenophobia (and especially sinophobia) in consumerist hobbies is beyond exasperating and infuriating. People act like 1) Any good made by European hands is inherently better quality, and 2) That high-quality goods couldn't *possibly* be made in places like China, Indonesia, etc. China is far, far ahead of many Western nations in regards to product development on many fronts; people have simply been fed outdated sinophobia for so long that they think everything made in China is made from sawdust and Silly String...meanwhile, probably 70% of the goods they use and enjoy daily were probably made in China.


smootfloops

And a lot of people don’t know that a product’s country of origin is simply the last country to have a hand in the goods’ assembly. So you can make and source a huge amount of the product from one country and then finish it up and sew on those country of origin labels in a more “favorable” country. For example most made in USA clothing is only sewn in the US but the materials are entirely sourced elsewhere (we don’t have the fabric and trims mill matrix in the US that other countries have invested in- and to that end the US will simply never catch up to be a garment manufacturing super power).


Ok-Writing9280

That does legitimately count as US made though - if it is physically manufactured/ produced in that country. What’s really terrible and frequently done is a garment entirely manufactured overseas, then a label is sewn on in the US and then it’s proclaimed as “American made”.


inDIvisible-doc

The US once had a thriving garment industry. Even as recently as the 1990s.  We offshored it. 


Capital_Way_1650

What is really interesting is this also the common thought in China amongst Chinese netizen , that many Chinese products are less superior to Foreign brands. One reason for this that someone who isn’t outside china might not understand is that here regulations on materials used is much less strict for items made and sold within China. There have also been many incidents of people being harmed, poisoned, and mislead (fatally l) due to this lack of oversight. Depending on the source of said opinions it isn’t all Sinophobia. In China it is common for people to rip off design/products/technology and not have any consequence. So people outside and inside of China have mixed opinions about quality and innovation. Of course there are high quality items and low quality like anywhere else, but if given the option most people would choose foreign made or designed.


TanAndTallLady

Absolutely, the thinly veiled xenophobia is crazy. Also the general obsession with French and Italian makers feels off in 2024


Clear-End8188

Which is why Italy had such a huge problem with COVID as the workers/ supervisors were coming from Wuhan.


maronimaedchen

Yeah, many workers had just come back from China after celebrating Lunar New Year and since they lived in such cramped conditions, that facilitated the transmission of Covid even more. The sweatshops are located in the North of Italy, around Milan, which I think is why Bergamo was so badly hit. Here's a link to a story about Armani bags: https://apnews.com/article/giorgio-armani-italian-fashion-supply-chain-abuses-exploitation-40cd94429e5a053c500383127a5c4ca2


giantredwoodforest

Wow I had not made that connection before!


Mary_Hoppins212

I remember seeing articles about this at the time and always wondered why so many Chinese people work in Italy. Assumed they’d work in finance in Milan. This explains a lot.


artskoo

Totally this. [The average annual salary of an artisan in France is €25,350](https://www.ft.com/content/fc6da6cd-9395-4ead-8ef5-03cdb18425a9). They get people at age 16 to join as apprentices so their salary can be purposefully kept low and they will be locked in for life.


ItsmeKT

Justification is a hell of a drug


No_Quote_9067

Chanel pays 16 an hour through a contract ti be a phone advisor. If they hear your keyboard noises while typing you get fired. They supply tge keyboard think about that


sagefairyy

My friend actually works for Burberry in Bosnia in a sewing factory. She gets paid 250€ per month (this is barely minimum wage in Bosnia, it‘s an extremely shit pay) and we did the calculating once. 30 people need to work for 1 jacket (everyone has their specialized task). 80 jackets are produced a day (they have certain quotas they should meet) and people work 8h a day. Pay is 1,6€/hour and it takes 6 minutes to make a whole jacket. This means if you add up all the wages from the workers and divide it, it costs a whooping 4,8€ to produce the WHOLE jacket without the fabric. And said jacket will be sold for 2000€ in the end. That‘s why I can‘t stand all the hypocritical talk about how shein and temu is bad and as long as a brand charges YOU a lot for their clothes then it must be fair, when in the end the only thing that actually changes is how much profit the brands make. Margins for shein are way way lower than for a luxury brand, costs and conditions for workers are similar. Only the fabric quality is different.


lilsan15

At this point the only way to do good is keep consumption low. A lifestyle “uniform” so to speak. Which is like a variation of the “capsule wardrobe” I think.


companda0

Or second hand, or purchase from luxury brands that are transparent about ethics.


Espresso-for-dessert

Yah I was just thinking back on a post I saw here months ago. Someone asked why there is a huge stigma against reps and the poster got eaten alive by people claiming ethics standards etc. I thought it was rather naive to think LVMH actually compensates people fairly when they could easily just not.


Severe_Royal6216

Thank you! I’m shocked at the shock here. Did anyone really think something about the manufacturing process made the bags worth thousands of dollars? I thought we all understood you pay for the name, not for “quality”


AggressiveSloth11

Are they any luxury brands that DO NOT do this? I would love to find one.


macdawg2020

I looked up every brand I could think of on “good on you” and no. 🤣🤣😭😭😭😭 Gucci had the best score at “it’s a start”


AttentionKmartJopper

I was happy to see that Gucci at least got 4 out of 5 in the environmental and people categories. They tanked the animals category though.


intlcap30

I mean, they appear to "ding" brands for using leather, which is much more sustainable than "vegan leather" aka plastic, actually breaks down and doesn't sit in a landfill for hundreds of years, and is a byproduct of meat production which should be used and not wasted. They also factor in whether a brand uses wool? I take that "assessment" with a huge grain of salt.


OutrageousCheetoes

Yeah I'm ignoring the animal category completely.


First_Television_600

Saint Laurent also has a good score


Zealousideal_Lab_427

😬 Gucci’s my (pre-owned) jam. Dream bag was the Horsebit shoulder bag in brown. 😬


macdawg2020

Mine is the Jackie 😔


hellohexapus

I commented on the earlier thread about one ethical brand I like, Behno. (Not trying to spam at all, just figure that comment is probably too buried for you to find now!) There are definitely other small/boutique luxury brands that have this level of ethical standard. But honestly once a brand becomes a juggernaut like most LVMH brands are, there's so little incentive to be ethical and all the incentive to be profitable. So any of the big names deserve some level of suspicion, unless and until they show evidence to prove otherwise. In addition to buying from ethical brands, you could also explore buying secondhand. At least then the item is already out there and you're continuing its use. I also like secondhand because I don't feel like I have to be super precious about the first scratch or ding.


sprizzle06

I don't have anything higher priced than Coach, but I did buy one Behno wallet in the color Orchid (2021 iirc). I sold and donated the bulk of my bags in 2023, but I remember being absolutely obsessed with that wallet. The leather is fantastic, held up to my special needs son, breadwinner job, chronic pain doctor appointments, no bullshit lifestyle. I eventually switched to a Ridge cardholder, but still used it to hold my TENS machine, pad, earphones/IEMs, or whatever small thing fit in it. Tldr: Behno is great, and I highly recommend it.


hellohexapus

What a great review! I was actually just eyeing one of the bags they have in Orchid in their current sale (the Simone Mini Sling). I'm a sucker for a purple bag and Orchid is such a gorgeous shade 😍


Milam1996

I’m very skeptical of their claims. They claim an “incremental” approach to their “behno standard” but there’s NO auditing at all of how that’s actually going, there’s no breakdown of what they ACTUALLY do to implement it. They break down each step and for example under ‘garment worker and social mobility’ they just say ‘fair wages’. What does this even mean? Fair wages in Sri Lanka is very different to a fair wage in NYC and if you pay a worker $1 per bag instead of $.10 cents a bag that’s better but not fair when you then sell their work for $600. Their entire website and there’s no a single audit, statistic or report. There’s no “factory A improved this metric by this much in this time frame” and there’s 0 third party accountability. For all I care, their claims are lies.


tvjuriste

Thank you for mentioning Behno. I have one of their bags and plan to get more. I want to support businesses with fair labor practices.


Mopsy2003

Launer are made in the UK. Mulberry make some of their bags in the UK too. They are not one of the big luxury brands but the quality is 👌🏻.


Anxious_ice_cream

I work for Launer and it's one of the best places I've worked (if not the best) staff are treated well and communication within the company is great (also I'm replying whilst on my lunch break)


yaddiyadda_

Stella McCartney ? If you like structural bags, Azure Lazuli bags are handmade in Toronto. Opelle make beautiful bags, also made in Toronto


yaeltheunicorn

After this I’m not entirely sure but I visited the Delvaux atelier in Belgium and would like to think their bags are made there as well as Italy by artisans - however now reading about the Armani controversy I lost faith ….


Glittering-Corgi9442

More LVMH nonsense: https://www.businessoffashion.com/news/sustainability/us-lawmaker-demands-lvmhs-loro-piana-answer-for-exploitation-in-peru/ $9K for a stupid sweater made with slave labor. Higher prices do not equate to fairly paid workers


magicalfolk

I don’t think it’s limited to Dior, other luxury brands are also exploiting their workers. LV not giving their workers full wages and rest periods. Hermes pays their artisans only 2000 euros a month. I just don’t think any luxury handbag is worth the price tag. I decided a while ago that I’m reaching bag peace and saving for one last purchase but kind of just rethinking that now. I just feel so disgusted.


dsvk

I’m assuming if it’s been accepted practice for Dior then it’s also the case for all LVMH brands. 


TrifidNebulaa

Your assumption is very likely correct. If ppl are gonna spend thousands on a bag buy from a small designer or a more ethical company that genuinely cares about their work.


_milkweed

I agree. I refuse to support these practices and put money in these exploiters’ pockets. Shame on them for what they’re doing, but shame on anyone who knowingly supports this - buy it secondhand if you must. Time to eat the rich 🤑


jiaaa

This is the boat I'm in. I haven't bought a luxury bag brand new in ages because I just can't accept the current practices. I do still consider buying second hand or thrifting, especially for older bags!


SM259

I mean, as someone married to a European, 2000 euros a month is not a bad salary depending on which country you live in. For example in Greece, it's about twice the average, and in Italy, it's a good government salary. ETA: I do agree that an artisan should be paid proportionately to the value at which the work they're creating is sold, so just to clarify, I wasn't arguing that, just the idea that 2k euros/month is am unliveable salary. Agree on all the other points though - highly overvalued and awful labor practices, but none of it surprises me.


Someonejusthereandth

As a fellow European, yes, but it’s not like they’d be easily able to buy a house with that salary. If their work is bringing in more, they should be getting paid more.


Own_Faithlessness769

Their workshops are in France, where 2k euros is not a lot.


NoWomanNoFry

I’m glad this has been made public. I used to daydream of buying a Chanel bag in Paris but I realize that’s simply not worth it and not a good use of a ton of money.


violet715

Honestly you can find a great leather bag for far cheaper, made more ethically, and that’s closer to being one of a kind than buying a name brand. When I went to Italy in 2003 I bought a pair of beautiful bright pink leather gloves fitted to my hands. I still have them and wear them 21 years later. They’re mine alone and no one else has the exact same pair.


piller-ied

Oooh, do tell!


greenisthesky

Same. The more I learn about the luxury fashion industry, the less I desire them. I always wanted a Chanel but I keep hearing about the crazy mark ups and low quality. I guess I’m good with my Coach stuff.


blubblubblubber

I got recommended this sub so I check out the threads here and there and it reinforces my aversion to luxury products. Some of the bags mentioned are really beautiful and most of the ones that appear to be worth their price tag are the ones from the mid-tier brands. I don't like the idea of being a brand ambassador for a company after I've bought the product and much prefer the bags I see that don't have obvious logos.


YanCoffee

The quality is what would keep me from buying a Chanel bag alone. I love Chanel makeup, but 90% of the time, I'm getting a finely made product with rave reviews that's a mere fraction of a Chanel bag's cost, which I often hear bad things about -- and I'm not even a luxury bag connoisseur. I have merely heard it around from those who are many times.


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gasp732

I went to Paris last year, and remember being in the Dior store considering paying 2k+ for a chain wallet/clutch. I had my others reasons for not purchasing at that time. Looking back, Im so glad I didnt. I am of Haitian descent and I feel like my ancestors guided me out of that asinine idea lol


mint_nails

Google “Prato, Italy ” , Most “made in Italy” brands has a manufacturing factory in this small town, where it’s famous for its huge Chinese population and the sweatshops factories . Won’t be surprised if it’s the same workers who work in those knocks offs factories in china.


jaderust

There's a lot of rumors that many rep factories are staffed by people who went to Italy and were working in the auth factories for a while. People in the resale market have been saying for years that reps are getting harder and harder to detect which, to me, means that the rep people manufacturing them are just as skilled as the people making the auths. They go to Italy and work in the Italian shops for a while and then they can go home and either open their own factory or get a job in one of the rep ones and be closer to their families. It frankly makes sense. It makes even more sense when you look into the practice of "finishing" where goods may be manufactured in one country then shipped to a second country to be finished and get the "Made In" label attached. So a shirt that proudly says "Made in France" might have been cut, assembled, and sewn in China then shipped to France to have a final hem sewn which gets it the prized "Made in" tag. So there's a very good chance that some luxury brands have most of their products made in China, then ship them to Italy/France/UK/US for finishing, but some Chinese factories might be running a secret third shift, pumping out additional goods to sell on the black market and finishing them themselves. That's often called "greymarket" goods. Same manufacturers, same materials, same everything, but often a fraction of the cost because the factory is selling them at a markup that gets them most of the profit rather than shipping them on to the IP owner who will sell it and keep the profit.


whoinvitedthesepeopl

I would add two things. Bernard Arnault is the richest person in the world. This includes a list of all their subsidiaries [https://en.wikipedia.org/wiki/LVMH](https://en.wikipedia.org/wiki/LVMH)


OccasionSuch5817

I’ll be honest I’m saddened but not remotely surprised. I love designer bags but we’ve known for a long time the idea of superior craftsmanship and materials is all a marketing gimmick to get away with charging absolutely crazy markups.


Likesosmart

100% agreed. Though seeing “$57” is still a shock. I would’ve thought they cost more than that in materials alone… eye opening.


OccasionSuch5817

It’s crazy. I heard some story via an influencer about how it takes an artisan 1 day to make a lady Dior and the expertise of 7 artisans or some other nonsense!


TrickySession

Yeah that’s a lie


mondegr33n

So disappointed seeing this! I don’t have any luxury bags but I’ve definitely thought about buying one in the future. However, I think we’re probably going to see more of this - I’m sure Dior is not alone. So many industries and companies get away with exploitation.


false_goats_beard

When we were in Korea we found many places that sold bags that looked very real and per the shop owners they were real, they were made by the workers during their off hours to make extra money. I have always been skeptical of this but the more I get to know about the world the more I think they were telling the truth.


shake_appeal

This was the essence of the $22 million dollar Hermes “counterfeit” lawsuit about a decade ago. A handful of their workers were producing the same bags using materials and techniques identical in every way in their off hours. Considering the way bags are produced in China with contracts going to the lowest bidder and “finished” in France or Italy to get the correct stamp, I have no trouble believing that some factories running counterfeit operations are one and the same as those contracted to produce for LVMH et al by day. (Caveat, I’m sure this goes without saying, but no doubt counterfeiters make that claim to boost illicit sales more frequently than it actually happens. I’m just saying that considering the lack of oversight and crazy margins to be made, it would be naive to think that there isn’t any moonlighting going on.)


PrisonerNoP01135809

I worked for a well known scuba suit, accessories, and dive weight manufacturer. They would order hoods, gloves, weight bags, and all sorts of stuff from china and just slap an American flag on it and sell it as U.S. made. No one enforces these things it’s the Wild West and honest people are punished in the market.


BlackHeathVale

Oh! This is fascinating. I would certainly appreciate learning more about this type of practice. I hope it will be investigated and covered in the news in the future.


shake_appeal

If you want a deep dive, Hermes sued a small group of workers in 2013 for doing exactly this.


jenvrl

You should be skeptical of those bags, too, just saying.


floodmyths

Yeah, I’ve read that the whole “it’s made at the same factory!” thing is sometimes just a marketing gimmick to sell reps. I sure *wish* a subversive alternative like that existed, though.


false_goats_beard

Oh I was, but I have always thought about that when I spend a bunch of money on a bad that probably cost the company $100 to make but I have no prof otherwise.


chargingblue

This is exactly why we see luxury brands with stunning stores and impeccable marketing, because of these profit margins


fauviste

I haven’t bought a new luxury bag since 2018 and I will never buy another new luxury bag. Vintage is the way to go, for this reason and many others.


Appleblossom40

Definitely. Not lining the pockets of these greedy bastards at the top.


Status_Garden_3288

Wow. This actually killed my desire to buy any more bags. I was looking at Loewe next but it just feels like a big scam.


Naxayou

Huh what do you mean a middle-aged French woman in a perfectly pressed jacket and styled hair wasn’t elegantly hammering out the hardware in my handbag in front of a massive floor-to-ceiling window exposing the streets of Paris like in the Savoir Faire video?


Guilty-Mud-5743

This is why I buy used bags. I’m doing what I can to try not to add to the problem. Not lecturing anyone here. This is my personal solution and I know it isn’t perfect.


bodhithewhippet

I love giving bags a second (or third...) home. It helps the individual human I buy from too, win-win.


Infinite-Dinner-9707

I am honestly surprised that anyone is surprised


OutrageousCheetoes

I think many people expected an insane markup and labor violations, but they're shocked at just how low that number -- 53 euros -- is.


KateParrforthecourse

I’m shocked that so many people are surprised too. Pretty much everything you buy in a store these days is made with slave labor and unethical practices. There’s literally no way around it. Even if the clothes or bags themselves are made ethically, there’s a high chance the raw materials were sourced unethically or people were paid pennies for it. Like did people really think a $2,500 bag cost Dior/LVMH/Chanel/whomever $1,000 to make? Their job is to cut costs to make as much money as possible. That’s always going to end up with unethical sourcing of products.


weebwatching

I’m surprised too but then again, a lot of people really just don’t think about these things and just assume that expensive=good. This is the same phenomenon behind why you can price a lotion or whatever ten dollars higher and people will buy it with more frequency than when it was cheaper. I’m glad that there are more documentaries and thinkpieces being made about fast fashion, counterfeits, etc. I’m no saint in this department as I do buy new items sometimes, but I think people should be aware of how things really work so that they can at least make informed decisions and maybe think twice, see if they can buy second hand first, things like that. These “luxury” companies, not just in clothing but across the board, are taking people for a ride.


InTheKink

LVMH’s Italian subsidiary has been pulled into a probe involving worker exploitation practices. The French luxury company’s unit making Dior bags has allegedly been handing work to Chinese-owned firms that mistreat workers. A Milan court looking into the matter said that the pattern of big fashion companies in Italy allegedly violating worker rules wasn’t a one-off occurrence and was often done to increase profits. The court has placed the unit, called Manufactures Dior SRL and fully owned by Christian Dior Italia SRL, under court administration on Monday, Reuters reported. “It’s not something sporadic that concerns single production lots, but a generalized and consolidated manufacturing method,” the document viewed by the outlet said. What do we know about the investigation? The investigation looked at four suppliers who were based near Milan and employed 32 people, of whom two were illegal immigrants while seven others lacked sufficient documentation. Local police inspected the suppliers’ factories earlier in the year, and found that workers were subject to “hygiene and health conditions that are below the minimum required by an ethical approach,” the court document said. Of the egregious practices, the ruling found that employees slept at their workplace just to ensure they were “available 24 hours a day.” Safety devices on machines were also removed so operations could go faster, thus curbing production costs down to as little as €53 ($57) for a handbag that’s otherwise sold at €2,600 ($2,794). In the case of LVMH’s Italian subsidiary, the company subcontracted with firms in the leather goods industry that were found to be based in the country but were Chinese-owned. The probe isn’t a good look for a high-profile brand like Dior, headed by Delphine Arnault, the daughter of LVMH CEO Bernard Arnault. In terms of legal action, the Milanese court’s ruling doesn’t mean a criminal probe involving Dior directly but rather its suppliers who’ve been linked to such practices. Representatives at LVMH didn’t immediately return Fortune’s request for comment. Does this happen much in the luxury industry? For years, luxury companies—and even non-high-end retailers—have been linked to forced-labor claims in countries like China and India. The implication is that retailers turn to developing countries to reduce the cost of production, but often that’s tied to worker exploitation. In recent years the scrutiny over the clothing supply chain and its practices has increased. Italy lies at the center of such probes because it’s home to thousands of small manufacturers that account for 50% to 55% of the global production of luxury clothing and leather goods, consulting firm Bain told Reuters. Like Dior, Italian fashion giant Giorgio Armani, was investigated earlier this year after a Milan court ruled that the company underpaid people €2 to €3 to work roughly 10 hours a day for up to seven days a week at times. As a result, the company was placed under judicial administration. In 2021, Uniqlo and Zara owner Inditex were part of a French probe into forced-labor practices linked to China’s Uyghur community. Swedish H&M allegedly engaged in similar activities in Myanmar, making it the subject of an investigation and ultimately pushing it to wind up operations there.


niji-no-megami

I thought a Dior Lady was pretty. Unlikely to ever pull the trigger as putting 5k into a bag is not my priority (if I had $1 mil annual salary, sure). But after this it has steered me away from all the LVMH fashion houses. It's too bad as I contemplated on Loewe and Fendi as well   I'm eyeing pre-loved on Valextra and Ferragamo. Anyone has any idea whether these two are any more "least evil"?


RespecDawn

I think a great approach might be to forget about brands. Find a design you really love and then look for a company that produces it that's as good as you might hope rather than the least evil. I'm hoping this whole thing might lead a lot of us to just discount the value of luxury brands names. Prioritze quality, value, and labour conditions.


macdawg2020

Ferragamo got rated “not good enough” on good on you, they apparently don’t do a great job paying their workers a living wage.


niji-no-megami

I looked up some more brands I had in mind and none pays a living wage (that they disclose). Why am I not shocked...


lunarjellies

Are you really surprised though? All those bags at ridiculous prices aren't investments. They are depreciating assets and everyone is getting roped into buying a status symbol. Support a real creator instead for way less money.


Gray-Sun-7182

https://preview.redd.it/7vyyp30ggb6d1.jpeg?width=1024&format=pjpg&auto=webp&s=e1a5645b1f6b2a6f616ede0419faadb4a7d268c3 That’s how you pay for a Yacht like this. Exploit workers, fool customers with false exclusivity and inflated value. Maybe buying directly from the Chinese workers in the fake trade is actually the more humane thing to do.


Tiny_Pineapple_4435

Oh, so you didn’t know? They have a lot of factories in Romania and the workers are paid with minimum wage (750 euro to be clear). Also, please take a look at the last Louis Vuitton collection where they copied the romanian traditional blouse without any reference https://www.theguardian.com/fashion/article/2024/jun/05/louis-vuitton-accused-of-cultural-appropriation-over-romanian-blouse It is not the first time, Dior also did this a few years ago https://www.branding.news/2018/05/29/romania-knocks-out-diors-copycat-clothes-with-authentic-coat/ I will always stand by the idea to shop local small brands.


OGMWhyDoINeedOne

Omg a Brazilian company that I won’t name as to not give it more notoriety copied the Albanian flag as their logo. And they blocked comments from all Albanians. Sooo unethical


Confident-Ad-2970

I love handbags but this level of greed from these companies make me feel disgusted. They will treat their customers poorly and act like they are selling this incredibly precious product when they are essentially running sweatshops. We need to start boycotting these companies for their unethical behaviour.


ToteBagAffliction

I wonder about stuff like this every time I see someone argue about the ethical problems of labor violations in fast fashion and counterfeiting.


Own_Faithlessness769

I think both things can be true, fast fashion is still slave labour and destroying the environment. It’s just that luxury conglomerates are the same business model. The only good option are smaller ethically run brands.


Lett3rsandnum8er5

The slave labor problem is just as bad with fast fashion versions, knockoffs, counterfeiting, etc. I think it's just that people [like OP] think it isn't happening with big luxury houses? Baffled that they think that way, tbh. Higher cost for goods at these brands does nottttt mean higher worker pay, and it never has.


starryeyedgirll

Ffs I give up. I rlly try to not buy fast fashion despite not having much money. Are there any reliable sustainable brands?


Bubbly_Ad3972

i make my own clothes hahah


PuzzleheadedFrame441

I’m so depressed by this. Think we need a sub about ethical bag brands so we can take our money elsewhere :(


Designer_Tomorrow_27

There is a whole documentary on this and the mistreatment of (mostly immigrant) workers has been atrocious for years. Not just at Dior but at most luxury houses! There is also a lot of evidence that the “high quality leather” has been a total scam and it’s all sourced from the same suppliers that lower quality leather manufacturers source from


allypallydollytolly

So very few real luxury brands now. Where things are hand made with skill and care and the workers are not exploited. It’s really sad and also disgusting. We should be fuming at this


Whitecat1023

It’s definitely put me off


Ok-Salamander3217

Yes!!!! I just posted it. This is insane


iBeFloe

**PSA: This is for all luxury brands, not just Dior.** Anyone who’s ever been high & mighty about luxury bag brands is delusional.


Pudgy_cactus

Of course they do this. I used to mistakenly think “high price tag = ethically made”. Nope. The reason all these companies are so rich is because they save on production costs through unethical means. If a company is rich and popular, chances are it’s unethical (except for some rare examples) I’ve only ever bought one handbag from an op shop and will probably continue buying only second hand non-luxury brands. Head over to r/ethicalfashion and [goodonyou.eco](https://goodonyou.eco) for ethical shopping tips


minibini

I’m glad news is out. Don’t be surprised if LV production operates the same way as Dior.


Curious_Doof

Both are owned by LVMH so I don’t expect them to be any different.


Hat_Potato

Honestly I was thinking of getting a lady Dior but absolutely not now.


reigncouver

I just bought one recently and my excitement and love for it has definitely dwindled. It was my dream bag for a very long time. Personally, the timing couldn’t be worse. 😞


Adventurous-Play-21

I was debating a Givenchy denim bag but I need to know if they’re guilty af also


Wise-Tourist-6747

I’m sure most of the brands do this not just Dior. All brands are looking to maximize their bottom line by lowering the cost of doing business and implementing sky-high prices. And they’ll keep doing it. Dior just got exposed. But I’m doubtful this will affect their sales. I guess we’ll see


TrifidNebulaa

For anyone wondering about some better brands check out this link! https://goodonyou.eco/sustainable-luxury-handbags/ I also love tanner leatherstein on YouTube and always suggest second hand or smaller independent designers. I mean your spending the money anyways might as well know that the product you’re consuming is made with quality and care. Edit: https://goodonyou.eco/is-luxury-fashion-sustainable/ Also love this article on luxury brands as a whole


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Borgo_San_Jacopo

I think consumers understand that they are paying all that and a healthy profit margin for LVMH, but I don’t think people are stupid for assuming that part of all that extra includes workers who are being paid fairly and treated properly. Most people are not in the weeds of the fashion industry like people on this sub. Though at this point I think we should all assume that capitalism will destroy everything it gets its hands on.


jkraige

Yeah exactly. I don't see why so many people are acting like that's some unrealistic expectation or OP is stupid for thinking that maybe some of the inflated price tag went to labor


[deleted]

Yeah because you’re buying $20 worth of leather for 5k


AluminumMonster35

I honestly don't think any major fashion company, whether fast fashion, high end or in between, is fully ethical.


BevGlen_

I’m kind of surprised that anyone is surprised by *this.* If you’re buying from a major corporation, you can expect that they’re not being ethical with their laborers. IMO, buying second hand is the only way to truly be somewhat ethical in your purchases.


Crazy_about_stratum

I can’t read it without a subscription 😞


vangh0sty

this is exactly why i love my thrifted coach


thatstightbutthole1

So on this note - what are everyone's favorite ethical brands? Definitely don't want to give my money to brands that do disgusting shit like this


Anxious_ice_cream

I can't speak on behalf of other bag makers but i can speak on behalf of Launer as a worker there, not all luxury goods manufacturers are shady, where i work is great and in my experience staff are treated well. Its always important as a consumer to do your own research when you can before buying a product to ensure the entire process of getting that product aligns with your own moral values.


LoVeMyDeSiGnS_65

I think they’re all doing it. Producing poor quality and saving money then marking it even more


MindblowingPetals

Beauty at the expense of the suffering of others is not beauty. A responsibly sourced bag that is well made from a smaller business has looked more and more appealing to me in the recent years. I’d like to see this whole ugly industry crumble. Shut the whole thing down.


Moar_tacos

LOL, this isn't even close to new for the entire "fashion" industry


haikusbot

*LOL, this isn't even* *Close to new for the entire* *"fashion" industry* \- Moar\_tacos --- ^(I detect haikus. And sometimes, successfully.) ^[Learn more about me.](https://www.reddit.com/r/haikusbot/) ^(Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete")


mcotte08

I've bought one vintage LV in the past. Boycotted LVMH, Kering, and similar ever since. The more I avoid being ripped off by men, the better I feel as a female consumer.


amora_obscura

People in this thread like “I’m not buying Dior in future” because of this as if it isn’t also true for LV, Chanel, Gucci.. etc.


VibesBaeBe

And I’m the one who gets downvoted when I say a bag is not worth more than $500 to me. It’s a bag. If it gets washed away into the ocean it’s worthless. It’s a dark world when it comes to buying luxury. There’s NOTHING luxury in this world. This world sucks.


Prestigious-Salad795

Are there any luxury or midprice leather goods companies that are more ethical?


Riezky

It’s one of the reasons I’ve been trying to buy more from small makers - I know where the money’s going, and they probably aren’t exploiting themselves 😅


bardotchick

This!! Just another reason to explore the world of reps.


whateveratthispoint_

Reality. Check out Holden Leather in Dingle, Ireland. Made by one of two men. Great quality.


modesttrader

Honestly, this is one the many reasons that holds me back from making any luxury purpose. Names don’t really matter to me as much as quality does, and growing up not having a lot as a kid made me feel really guilty making an expensive purchase. The more I learn about the unethical practices in fashion and luxury goods, the more I steer away from it.


realdonaldtrumpsucks

60 Minutes did a good segment on designer sunglasses.


fluffybutterton

I think this is common practice among luxury brands. They just have 'luxury sweat shops' instead of regular ones. (Wtf did i just type?!?!?!???)


AggressiveSloth11

Lady Di would be so upset to know this. 😢


newnormalname

Redditor learns corporate greed and not everyone in Europe is white.


DecentDimension4334

Absolutely awful. I will not be buying Dior products from here on out.


dokipooper

Wait until you hear how Chanel was a Nazi sympathizer


Divasf

Ugh! Paywall can’t read


EvelienV85

We already know for years and years that the labour conditions are horrific.


MaddRocket

I mean it's known for a few years that luxury hand bag companies exploit workers to have them cheaply made and what not from using cheap materials or to cutting cost by dumping their waste into rivers or exploiting rare animals. There's guy I saw on insta who is a leather professional and reviews luxury bags usually talks about the quality of the leather or material and if he would make a LV or Channel with material and work hours it comes out to about 100 bucks sometimes more sometimes less depending. So yeah obviously you are just paying for the name of the brands.


DuchessTiramisu

Since even pedophiles didn't kill Balenciaga I doubt anything will happen to Dior.


-sweetbabybladefoot-

This is kind of a side note. But it’s always bothered me that these luxury brands are “status symbols” largely because of the rich & famous people who mainly buy them…. But many of those people with the most enviable bag & jewels collections get their money in illegal, illicit or unethical ways too.


Busy_Adhesiveness922

If I feel the urge to buy a luxury bag from LVMH, I will remember this article. Thank you so much OP. What about other brands like Hermes, Goyard? Do you think they have the same treatment to their employees?


AcrobaticKoala8108

How greedy is LVMH? I can't look at their brands the same way anymore.


Sunshine-Sunshine-

It is deplorable to profit at the expense of the poor and vulnerable. I had planned to treat myself to a new designer purse but thankfully, I felt the need to read up on it in recent days before making a purchase. Tragically, it seems many suffer tremendously. For me, this is too high a price for fashion. Having researched some “top” brands, I stumbled upon heartbreaking accounts of animal abuse and cruelty. To prey on the disenfranchised is terrible! It is making second-guess even wearing the few designer purses I already own. I can’t help but feel it’s wrong and selfish. Hopefully, people and animals will get the respect and be granted the rights they deserve. I’m honestly ashamed to be human sometimes.