Urgent Reforms Needed in Luxury Fashion's Supply Chain
A recent judicial move in Milan has put a spotlight on some serious ethical issues in the luxury fashion industry. Christian Dior, under the LVMH umbrella, has been placed under judicial administration for a year after a shocking discovery of worker exploitation by its subcontractors. This comes shortly after a similar action against Giorgio Armani, highlighting a worrying trend in the sector.
What’s happening? Dior’s subcontractors in Italy were found cutting corners in the worst ways—overworking and underpaying workers, some of whom were even sleeping in factories to meet demands. These practices are not just troubling; they're illegal and morally reprehensible. They’ve been charging luxury prices for goods made under conditions that don’t align with the prestigious “Made in Italy” label they sport.
Why should we care? Well, if you're in the business world, these practices affect more than just the bottom line. They threaten the entire brand reputation of companies involved and, by extension, the luxury industry at large. With Italy being a major hub for global luxury goods production, the stakes are high to clean up these practices.
Scott Newton from Thinking Dimensions Global Consulting put it bluntly: The luxury fashion industry needs to step up and integrate real, meaningful changes into their business models. It’s not just about avoiding bad press—it’s about doing right by the people who build these businesses from the ground up.
The industry faces a pivotal moment. Can it reform its supply chains to respect both human rights and fair competition? Or will it continue to let these issues slide, potentially costing more than just profits? The choice will shape the future of luxury fashion.
A recent judicial move in Milan has put a spotlight on some serious ethical issues in the luxury fashion industry.