People often end up paying hefty amounts of money to purchase products from luxury brands because they are fascinated by the seemingly quality craftsmanship, prestigious logos, and fashionable silhouettes. They are also a status symbol and give an air of exclusivity. They are characteristic of wealth and sophistication.
However, not all that glitter is gold. The true cost of luxury often goes beyond the price tag. Some brands exploit labour in developing countries, paying workers meagre wages despite the high retail prices. The environmental impact of producing luxury goods is also immense, with wasteful practices and unsustainable sourcing of materials. To top it all off, the high prices are because of extensive marketing and brand positioning rather than the actual product quality.
This was brought to light recently after the police in Italy ran a series of raids and an investigation into luxury brands. It has been revealed that Dior has been paying suppliers 53 euros (Rs 4,700 approx) per handbag and then selling it for 2,600 euros (Rs 2.34 lakh approx) in its stores, reported Moneycontrol.
On the other hand, Armani buys handbags for 93 euros (Rs 8,400 approx) from suppliers, resells them to the brand for 250 euros (Rs 22,500 approx) and is later priced around 1,800 euros (Rs 1.6 lakh approx) in stores.
These luxury companies have been accused of not overseeing their supply chains properly. While the companies themselves are not facing charges, some of their suppliers might be charged for exploiting workers and employing them without proper documentation. During inspections in March and April, Italian police found illegal immigrants and workers who were employed off the books, reported Economic Times.
The working conditions were found to be very poor, with workers living in the workshops and working from early morning until after 9 pm, including weekends and holidays. They also operated unsafe machines from which safety devices had been removed to increase productivity.
This goes on to prove how consumers are paying for the brand’s image rather than the product and superior quality. There is also a pressure to be trendy, which often leads to unnecessary purchases and normalises a culture of overconsumption. We need to look beyond the brand allure and think more ethically.
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