Now we know how much it costs to make a $2,800 Dior bag
Now we know how much it costs to make a $2,800 Dior bag
- The Italian police raided some of LVMH’s Dior suppliers that make luxury handbags.
- Italian prosecutors found Dior paid $57 to produce bags retailing for $2,780.
Italian prosecutors in Milan investigated the LVMH subsidiary Dior’s use of third-party suppliers in recent months. Prosecutors said these companies exploited workers to pump out bags for a small fraction of their store price. Citing documents examined by authorities, Reuters reported last month that Dior paid a supplier $57 to produce bags that retailed for about $2,780.
In probes through March and April, investigators found evidence that workers were sleeping in the facility so bags could be produced around the clock, Reuters reported. The probe also said safety devices on gluing and brushing machines were removed so workers could operate them faster.
The probe also extended to Giorgio Armani contractors. Armani paid contractors $99 per bag for products that sold for more than $1,900 in stores, according to documents seen by Reuters.The prosecution said violating labor rules was a common industry practice that luxury giants relied on for higher profits.