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Did you hear about this?
Italian prosecutors have recently alleged that the major fashion houses, Dior and Armani, have been using subcontractors that have been employing cheap illegal immigrant Chinese labor to create their goods. The prosecutors allege this in a big case against the fashion houses for failing to oversee the conduct of their suppliers.
According to the documents, some bags and other goods made by these employees, who are paid as little as $2 per hour, cost approximately $57 to make in labor costs and sell for as much as $2,780.
Say what you will, that marketing costs, designer costs, and all these other costs factor into these high prices, but thatโs not the point.
The point is that when people buy expensive Italian goods, they expect them to be made by a highly skilled artisan in Italy. If itโs not, then is there really a difference between a fake bag that looks the same, is made from the same materials, and is made with the same cheap Chinese labor?