An Italian investigation has disclosed that the acclaimed highly sophisticated handbag Dior that sells for $2,780 costs just $57 to be produced.
The Italian luxury giants was reported as paying just a small amount to produce the high-end handbags that retail for thousands of dollars.
According to a report by Business Insider, the revelations have come to fore during an investigation into the alleged exploitation of workers by a Chinese-owned leather bag supplier of luxury brand Dior.
The investigation also reported that another luxury bag producer, Armani produces a bag at cost around $99, but retail it for $1,900.
Workers reportedly faced poor conditions, long hours, and a lack of safety measures, including sleeping on-site to produce bags non-stop, with electricity data confirming work on nights and holidays.
Dior, which is owned by LVMH, has been under investigation by authorities in Italy, who looked into the working conditions at some of the company’s factories that craft Dior handbags.
Italian police raided some of LVMH’s Dior suppliers, uncovering that these practices were part of a broader issue involving the outsourcing of luxury manufacturing to Chinese-owned firms that exploit workers.
Dior is famous for its high-end merchandise such as handbags, apparel, jewelry and other accessories, which often come with price tags that are over $1,000.
However, the recent investigation has exposed the facade that the expensive price tags match the cost it makes to produce these items.(NAN)
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