Smriti Agarwal
Dior, a French luxury fashion house founded in
1946 by Christian Dior has come under scrutiny for a serious scandal. Often
flaunted as a symbol of prestige, apparently the brand is more than what meets
the eye. According to the recent investigation by Italian prosecutors, Dior
along with Giorgio Armani spends only a fraction of the extravagant retail
price to produce these bags. It seems that all this while consumers were paying
for silver in the price of gold.
As reported by Business Insider, the Italian police raided some of LVMH Dior’s suppliers that produce handbags in Milan. The probe concluded that Dior pays the suppliers a mere amount of INR 4,700 per handbag and sells in stores for over 2 lakh INR. Similarly, Armani’s handbags are purchased for roughly 8,385 INR and sold to the brand for 22,540 INR and subsequently priced at 1.62 lakh in stores.
Furthermore, there is a claim which states that Dior didn’t take “appropriate measures to check the working conditions or the technical capabilities of the contracting companies” and the workers were sleeping in the workshop to produce bags 24*7. Giorgio Armani too has been accused of not overseeing its suppliers with vigilance. Both luxury brand units are under judicial administration for a period of one year after they were charged of exploiting the workers and breaking the labor laws.
While Dior has yet to respond, Armani stated that it has “control and prevention measures in place to minimize abuses in the supply chain” and is “collaborating with the utmost transparency with authorities.”
In conclusion, the revelations surrounding the dream luxury brands highlight a significant disparity between luxury labels and their ethical practices in production. The vast difference between the cost of making and retail prices have raised a question in every consumer's mind. Should we really spend the hard earned money on luxury brands? Are they delivering what they promise or is it just a money minting scheme? These incidents underscore the need for greater accountability in the industry and urging the buyers to not get allured just by the logos. The wait is to see how such allegations will shape the future of luxury fashion.
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