Yet again another luxury fashion brand finds itself in legal trouble. LVMH’s Loro Piana has been placed under court supervision because of explotative production. Chinese laborers complained of wages being held, working long hours and physical violence used against workers.
After numerous recent scandals why didn’t the French corporate giant clean up its production act? According to Reuters the outsourced factory produced cashmere jackets for as little as 128 euros per unit that sold for up to 7000 euros. That is a 5300% mark-up.
Will this scandal tarnish Loro Piano’s reputation with buyers? That remains to be seen. Playing on the desire for the aspirational. Luxury labels are taking advantage of their customers. They may learn relationships have boundaries.