Andrew Wallis OBE’s Post

Corporate greed in luxury brands. Luxury brands should know exactly where their products are being made but many do not and deny responsibility. The reason is simple to keep costs down and profits up. Most luxury brands make huge profits, so they can afford to pay reasonable salaries.

The True Cost of Fashion? Armani Faces Labor Exploitation Probe Luxury fashion house Armani faces controversy as a court in Milan placed a one-year administration order on Giorgio Armani Operations, a subsidiary accused of using subcontractors who exploited workers. Investigators found workers making Armani products for a fraction of the retail price, reportedly working long hours for meager wages. The company maintains it has measures in place to prevent such abuses, but this case adds to a growing concern about labor conditions in the luxury fashion industry. This news comes after another Italian fashion company, Alviero Martini, faced similar investigations. Italy is a major producer of luxury goods, but it seems ethical production practices may not be keeping pace with its fashion reputation. #FashionEthics #LaborExploitation #LuxuryFashion #SustainableFashion #SupplyChainTransparency #CorporateSocialResponsibility #italy

🔸️Milanese surroundings as Bangladesh: after 10 years from Rana Plaza we still have our eyes closed🔸️ This years #fashionrevolution celebrates ten years of activity. Ten years from #ranaplaza when the entier fashion world must admit that it create modern slavery and not just clothes. Till the 5 of April we thought that sleavery in fashion industry was some shameful matter accuring only very far from Europe, very far from Italian luxury brands. The Fashion Transparency Index 2023 shows that only "23% of brands discose data on the prevalence of modern slavery related violations or risk factors". In the list of the 250 brands analised, there are many luxury brands and they are not only in the "good guys" list. Perhaps we still have our eyes closed to admit that many other luxury brands have opaque management as Armani company has shown us and more news will arrive like this from Italy and throughout the European area. I believe that #madeinitaly is something more that a luxury brand : made in Italy is experties, culture, quality and creativity. We just have to start again from the ethical side and clean the idea of "made in Italy" quality from the dirt shade of slavery. #modernslavery #ethicalindustry #sustainabledevelopment

An Italian subsidiary of LVMH, producing Dior-branded handbags, was placed under court administration after subcontracting to firms mistreating workers. Investigations revealed severe labor violations, including undocumented workers in substandard conditions, continuous production cycles, and removal of safety devices. Contractors charged Dior as little as €53 per handbag, which Dior sold for €2,600. The court highlighted systematic exploitation driven by profit motives. This follows a similar case with Giorgio Armani's suppliers. LVMH's shares declined, and the contracting companies' owners are under investigation for worker exploitation.  _________________________________________________________________________________ A critical business lesson from this matter is the importance of maintaining rigorous oversight and ethical standards throughout the supply chain. Companies must ensure that their subcontractors and suppliers adhere to legal and ethical labor practices to avoid reputational damage, legal consequences, and financial losses. Regular audits, transparent reporting, and a commitment to corporate social responsibility are essential to safeguarding the brand's integrity and sustainability. By prioritizing ethical supply chain management, businesses can protect their reputation, enhance consumer trust, and ensure long-term success. https://lnkd.in/g3xGPNcS

Recent reports (https://lnkd.in/eqrb9Mxf) have uncovered that luxury brands like Dior and Armani have been using contractors who pay migrant workers as little as $2 an hour to produce handbags sold for thousands of dollars. These findings are alarming and highlight a critical issue in the fashion industry: the exploitation of human labor for profit. This is a stark reminder of why supporting small businesses and Made in USA products is more important than ever. Small businesses often prioritize ethical practices, ensuring fair wages and humane working conditions. They don’t cut corners or capitalize on human suffering to maximize profits. As someone who has worked closely with handbag factories and experienced firsthand the dedication to quality and ethical standards that many small businesses uphold, I can attest to the significant difference in their approach. Supporting these businesses not only contributes to our economy but also promotes a more just and humane manufacturing process. Let's champion small businesses that value integrity over profit and ensure that every product we buy is a testament to ethical craftsmanship. Together, we can make a difference. 💪✨ #SmallBusiness #EthicalFashion #MadeInUSA #SupportLocal #FairTrade #SustainableFashion #EthicalProduction

Friday news 🗞 "Dior and Armani under investigation for exploiting workers at 'Chinese factories' in Italy" 🗣 Responses: Armani group said it believed "the allegations have no merit and are confident of a positive result following the investigation". Meanwhile, Dior said it condemned "in the strongest terms, these acts [that are] contrary to its values and the code of conduct signed by these suppliers" and that suppliers had "clearly succeeded in concealing these practices, despite regular audits..." 💢 Issues: The use of irregular and illegal workers in exploitative conditions. According to police, 4 factories were checked, with 7 people found without the correct documents and 2 who were in Italy illegally. Excessive working hours and safety shortcuts "allowed [the supplier] to charge Dior €53 for a bag that retailed for €2,600". 💭 Thoughts: Luxury brands rely heavily on perceived value and reputation > Dior and Armani's responses aren't inspiring confidence. Authorities are taking these issues seriously and are willing to scrutinise. This further signals the necessity for robust HRDD and mindset change...which luxury brands can afford and should, prioritise. #hrdd #luxuryretail #dior #armani

https://lnkd.in/dfhbmnxM It is astonishing that brands have not yet started introspecting and recognizing the urgent need for change. It seems they prioritize securing good deals on their products over taking responsibility for their production processes, the conditions under which they manufacture, and the people involved in the process. Recently, the luxury brand Armani Group was placed under court administration in Italy for subcontracting to a company that was violating workers' rights. This incident serves as a critical reminder for all brands, regardless of their market position, to reassess their operations. Brands must demand transparency from their suppliers. The Armani case has highlighted the necessity for brands to be fully aware of their supply chains—ignorance is no longer an excuse. Now is the time for change. --- What do you think?

HAVE WE WOKEN UP YET ? Everyweek , every day, every minute there seems to be yet another breaking news story surrounding the luxury fashion brands exploiting people for profit and wealth harvesting. I am not sure how many more stories, undercover journalist reports and articles it will take before we realise the scale of the issue, as consumers start to use morality and compassion to boycott Luxury ! in favour of more ethical concious brands to market that actually care about people, planet and product over profits. What does purchasing these brands actually represent these days anyhow ? why would you wish to associate yourself with them ? The more uncovered the less desirable they become. Wearing or sporting these brands amidst the chaos and corruption is no longer a good look or an attractive quality. Perhaps the reason for the rise in "Quiet Luxury" and the removal of visible branding and logo embellishment in an attempt to draw less attention to ones self. Once Aspirational ! Now Apathetic It's no wonder VB Victoria Beckham has a new collaboration deal with lower price fashion brand MANGO for a cut and share of the profits ! She will need to recoup some of the losses that she won't get paid for having been stocked by MATCHES fashion as her own branded luxury label struggles to sell in coming seasons. LUXURY brands are one of the biggest culprits in exploitation. Is it any wonder why luxury brand fashion is falling out of favour with consumers. The constant exchange of luxury fashion brand design directors jumping ship and changing alliances is another sure sign the luxury fashion industry is on less stable footing. There has been more stability in recent global earthquakes than in luxury fashion at present. Luxury retailers stocking luxury brands struggling to grapple with the drop in sales, over purchased stock levels and rise of resale and secondary markets. How many more buyouts, hostile takeover bids and corporate acquisitions will it take to realise the scale of the problem that it's no longer cool to buy LUXURY BRANDS. Nike, Addidas and other house hold names are all starting to feel the seismic shifts playing out too. Regardless of your product offer, position in the market place and marketing tactics the cold- hard truth is that consumers are done with the lies, corruption and greed in a world where people are genuinely suffering to live even most basic levels of existance. More luxury fashion drama incoming ! That much you can be assured. HAPPY Monday! by the way ! https://lnkd.in/eDVVdSMc

Christian Dior must be turning in his grave.   The Dior brand, owned by the LVMH Group since 2017, is tainted by legal proceedings. A Milan court has just placed a subsidiary of LVMH, manufacturer of Dior handbags, under court administration. The Italian branch had subcontracted work to Chinese-owned firms that mistreated workers.   Workers are mainly Chinese illegal immigrants. The court report mentions that “workers were made to sleep in the workplace to have manpower available 24 hours a day”. Data mapping electricity consumption showed “seamless day-night production cycles, including during the holidays”. This is a typical case of modern slavery, and it is not happening in China but in Tuscany!   What is most shocking is that this is the Milan court's third decision of this type this year. The Armani brand was also found to be at fault. The judge concluded that this is a systematic practice and that investigations must continue.   The Milan court revealed that subcontractors sell the bags at 53 euros each for a luxury product which retails for 2,600 euros in stores. Should we remember that LVMH belongs to the richest family in France.

Another case of a well-known brand's suppliers seriously violating labor rights. And this time we are not talking about "unknown" upstream tier-n suppliers located in countries where transparency is difficult to achieve. The suppliers are located just a few miles from Milan, where the client company, Manufactures Dior SRL, is based.   How is it possible that such a branded company has not properly managed the ESG compliance risks of its suppliers?   The article reports that regular supplier audits would have uncovered these labor issues.   How can a brand like Dior fail to mitigate such reputational and legal risks?   #SupplierRisks #ESG #LabourRights #Compliance #SupplyChain