Valentino & Others Investigated For Trafficking Chinese Laborers To Italy To Creating ‘Made-In-Italy’ Luxury Goods

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In a series of investigations that have sent shockwaves through the luxury fashion industry, Italian authorities have uncovered widespread labor exploitation within the supply chains of several high-end brands, including Valentino, Dior, and Armani. These revelations challenge the long-held perception of ethical craftsmanship associated with the “Made in Italy” label.

Valentino Bags Lab Under Judicial Administration
On May 15, 2025, an Italian court placed Valentino Bags Lab Srl, a unit of the renowned fashion house Valentino, under judicial administration for one year. The court’s decision followed findings that the company subcontracted production to Chinese-owned firms in Italy that exploited workers. These workers faced grueling conditions, including 24-hour production cycles and inadequate wages, often as low as €3 per hour. The court criticized Valentino Bags Lab for failing to adequately oversee its suppliers in pursuit of higher profits.

Valentino is not alone in facing scrutiny. In June 2024, a Milan court placed Manufactures Dior Srl, a unit of LVMH’s Dior, under judicial administration after uncovering similar labor abuses. Investigations revealed that Dior’s suppliers employed undocumented workers in unsafe conditions, with some workers forced to live in the factories. These suppliers charged Dior as little as €53 for handbags that retailed for over €2,600.

Similarly, in April 2024, Giorgio Armani Operations was placed under partial judicial administration. The court found that one of its suppliers subcontracted production to Chinese workshops employing workers under exploitative conditions, including excessive working hours and inadequate safety measures.

Dior and Armani Also Implicated

Systemic Issues in the Luxury Industry
These cases highlight systemic issues within the luxury fashion industry’s supply chains. Italy, home to thousands of small manufacturers, accounts for approximately 50% to 55% of global luxury goods production. The reliance on subcontractors and the lack of effective oversight have created an environment where labor exploitation can flourish.

Despite regular audits, many brands have failed to detect these abuses. Audits are often announced in advance and limited in scope, allowing suppliers to conceal unethical practices. As a result, the luxury industry’s reputation for ethical production is increasingly under question.

Calls for Reform and Increased Transparency

In response to these revelations, there are growing calls for reform within the luxury fashion industry. Experts advocate for unannounced audits, greater transparency in supply chains, and stricter enforcement of labor laws. Consumers and investors alike are demanding that brands uphold ethical standards and ensure that their products are not the result of exploitation.

As investigations continue, more brands may come under scrutiny. The luxury fashion industry faces a critical juncture: to restore trust, it must confront these systemic issues and commit to meaningful change.We will continue to monitor developments and provide updates on this evolving story.

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