New Delhi: Luxury giants Dior and Armani purchase luxury handbags at Rs 4,700 and Rs 8,300 from suppliers and then resell them at exorbitant prices, a recent investigation in Italy has revealed as reported by the Wall Street Journal.
Dior pays its suppliers 53 euros (about Rs 4,700) per handbag. The Italian Luxury brand then sells it for 2,600 euros (Rs 2.34 lakh) in its stores.
On the other hand, brought for 93 euros (Rs 8,400) from suppliers, Armani’s handbags are resold to the brand for 250 euros (Rs 22,500). These handbags are priced at around 1,800 euros (Rs 1.6 lakh) in stores. However, the journal noted that these costs do not include fees for materials such as leather, with additional costs for design, distribution, and marketing being handled separately.
The luxury companies have come under heavy fire with the prosecutors slamming them for neglecting to monitor their supply chain. Although the businesses are not prosecuted in connection with these findings, some of the independently owned suppliers may be charged with labour abuse.
The LVMH conglomerate, which owns Dior, remained silent on the report. Armani, on the other hand, has said that it was “collaborating with the utmost transparency” with authorities and that it has “control and prevention measures in place to minimize abuses in the supply chain,” according to the Wall Street Journal story.
Dior, founded by Christian Dior, is an esteemed French luxury fashion business well-known throughout the world for its upscale clothing, accessories, cosmetics, and fragrances. Dior purses are very well-liked by celebrities all around the world.
Giorgio Armani, better known as Armani, is an Italian luxury fashion brand that specializes in ready-to-wear clothing for men and women as well as accessories, eyewear, makeup, and fragrances.