The 100-year-old Italian ultra-luxury brand Loro Piana, which was acquired by LVMH in 2013, is facing court action as its production facility exploited poor immigrant Chinese labor. The brand that carefully built its image as the premium producer of finest cashmere, vicuña, linen and merino fabrics and apparel lines, is found to have outsourced its manufacturing of its clothing to a company without verifying that it lacked any production facility and was instead working with sweatshops around Milan. Loro Piana is reported to have immediately terminated its contract upon discovering this. The judges in Milan court have ordered one-year court administration for Loro Piana, which did not carry out the due diligence to ‘prevent or curb labour exploitation’.
Loro Piana FallWinter 2024-2025 Collection – Image courtesy @loropiana
The local police or carabinieri, began their investigation in May, based on complaint filed by a Chinese worker, of physical abuse, salary cuts, long working hours etc. This led them to the many such sweatshops around Milan, where workers lived crammed in unsanitary dormitories, exploited for their wages, beaten, refused sick leave, working long hours in unhealthy and unsafe environments.
Loro Piana Singapore Marina Bay Sands
Dior, another luxury brand owned by LVMH, was also found by authorities of similar violations and made to pay compensation instead.
These iconic luxury brands, while claiming authentic ‘Made in Italy’ status, are importing the sweat shop conditions to their neighborhood. It would put a question mark on the high price tag, if the product label said ‘Made in China’ or ‘Made in Bangladesh’. It raises the bigger question of the push to show higher profits, bigger sales, even as the limited buyer base is shrinking or dealing with larger existential issues. Where is the profit coming from? What corners are being cut?
