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Dior and Armani, epitomes of style and status symbols with their skyrocketing prices, are even aspirations to many. However, the fashion giants have been accused of labour exploitation in Italy.

Apparently, all that shines at those luxury showrooms has a closet full of bones. Reports from a US-based newspaper stated that raids were conducted at the factories in Italy that manufacture handbags and leather goods for Dior and Armani.

These luxury brands were accused of utilising reportedly cheap foreign labour to manufacture high-end products well below their retail prices.

According to reports, documents examined during the investigation reveal shocking revelations that Dior purchases handbags from suppliers for just €53 each, subsequently retailing them in stores for €2,600.

Getting into the details, the report stated that Armani acquires bags from suppliers at €93 each (~₹8,389), then sells to customers at around €1,800 (~₹1,62,374) per bag.

These figures, however, do not include costs for materials such as leather, with additional expenses accounted separately for design, distribution, and marketing.

Dior is a French multinational luxury fashion house owned by Bernard Arnault, who also heads LVMH.

According to the reports, a Milan court has recently subjected LVMH's Christian Dior brand to judicial administration for a year following an investigation revealing that two of its Chinese-owned subcontractors, located outside Milan, had exploited their workers.

This decision follows a similar ruling in April against Giorgio Armani for ‘culpably failing’ to properly supervise its suppliers, as reported by a news agency.

According to Forbes, although Dior was not criminally liable, it was determined that Dior had been negligent in not ensuring that contracting companies adhered to adequate measures to verify working conditions and technical capabilities.

Furthermore, the court’s investigation suggested that these unethical manufacturing practices are widespread in Italy. Thousands of small manufacturers, often foreign-owned, supply luxury brands with products bearing the prestigious ‘Made in Italy’ label but are manufactured at costs similar to those in China, reported the business magazine.

The profit-hungry firms also oversaw hygiene and health conditions of the workers and safety devices were also removed from the machines that were operated by the workers to increase productivity, as per court ruling.