Investigation Reveals Dior’s $2800 Bags Cost Mere $57 To Make
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Dior- Investigation Findings
A series of raids in Italy has exposed the contrast between the glamorous world of Milan’s catwalks and some of the realities of luxury-goods production https://t.co/y36SEIfBo1https://t.co/y36SEIfBo1
Dior’s Italian Subsidiary: Subcontracted work to Chinese-owned firms exploiting workers.
Court Administration: Dior’s Italian operations have been placed under court administration following the investigation.
Worker Documentation:
Illegal Immigrants: Two staff members entered Italy illegally.
Improper Documentation: Seven staff members worked without proper documentation.
Health and Safety: Workers faced below-minimum health and hygiene conditions.
Production Cycles: Facilities had unbridled day and night production, even during holidays, with safety devices removed from machinery for faster operations.
Court Criticism and Impact
Brands Criticized: Milan court criticized Dior and Armani for failing to oversee their supply chains adequately.
LVMH Shares: LVMH shares dropped by 2.2% following the news.
Contractor Accountability: While Dior itself is not under criminal investigation, the contractors are being scrutinized.
Broader Implications
Supply Chain Oversight: The investigation highlights the need for luxury brands to ensure ethical practices in their supply chains.
Ethical Standards: The findings stress the importance of maintaining health, safety, and legal standards for workers in all parts of the production process.