Dior is a leading luxury brand globally. Dior, founded by Christian Dior in 1946, is a renowned French luxury fashion house celebrated for its highend fashion, accessories, fragrances and beauty products. Its bags are flaunted by many celebrities across the world. But a recent investigation by Italian prosecutors has revealed that Dior and another Italian luxury giant Giorgia Armani pay just a small amount to produce these handbags that retail for thousands of dollars. This came after Italian prosecutors in Milan investigated the LVMH subsidiary's use of thirdparty suppliers in recent months. TheWall Street Journal WSJreported that Dior pays a mere 53 euros Rs 4,778 per handbag to its suppliers, which it then sells in stores for 2,600 euros Rs 2.34 lakh. Meanwhile, Armani's bags, initially bought for 93 euros Rs 8,385 from suppliers, are resold to the brand for 250 euros Rs 22,540 and subsequently priced around 1,800 euros Rs 1.62 lakh in stores, theJournalfurther said. . The outlet further said that these costs exclude expenses for materials like leather, and additional expenses such as design, distribution and marketing. The Italian prosecutors have slammed the luxury brands for failing to oversee their supply chain. These firms will, however, won't face any charges related to the investigation. Dior hasn't responded to the report, but Armani said it had "control and prevention measures in place to minimise abuses in the supply chain" and was "collaborating with the utmost transparency with authorities", as perWSJ. PromotedListen to thelatest songs, only onJioSaavn.com. Consulting firm Bain said that Italy hosts thousands of small manufacturers, and is a hub for producing luxury clothing and leather goods, generating 50 per cent to 55 per cent of global output. Dior is one of the leading luxury brands in the world. Its elegant and sophisticated designs have made it a staple in haute couture and readytowear collections. Over the decades, Dior has expanded its influence under the creative direction of notable designers like Yves Saint Laurent, John Galliano and Maria Grazia Chiuri, maintaining its legacy of elegance and modernity in the everevolving fashion industry. TrackLatest NewsLive on NDTV.com and getnewsupdates fromIndiaand around theworld. Watch Live News:. ................ Advertisement ................
Italian prosecutors revealed that luxury brands Dior and Armani pay suppliers low amounts for handbags sold at high prices. Dior pays 53 euros and sells for 2,600 euros, while Armani buys at 93 euros and resells at 1,800 euros. Despite criticism, the firms won't face charges. Italy remains a key hub for luxury clothing production.