Business Insider reports that luxury brands Dior and Armani have been found paying subcontractors minimal amounts to produce their high-end handbags.
An investigation in Italy uncovered that Dior’s handbags, which are made for approximately $57, are sold for $2,780, and Armani’s handbags, which cost about $99 to produce, retail for $1,900.
Workers were said to endure harsh conditions, including long hours, inadequate safety measures, and being required to sleep on-site to maintain continuous production.
Electricity data showed that work continued through nights and holidays.
During raids by Italian police on some of Dior’s suppliers from LVMH, it was revealed that these exploitative practices were widespread, involving the outsourcing of luxury manufacturing to Chinese-owned firms that mistreat workers.
