High Fashion is Losing High Quality 

It’s no secret some of the world’s wealthiest billionaires made an appearance at President Donald Trump’s second inauguration. Mark Zuckerberg of Meta, Shou Zi Chew of TikTok, Elon Musk of Tesla, Sam Altman of OpenAI, Jeff Bezos of Amazon and Tim Cook of Apple are all familiar faces to the American public. 

But, there was one CEO fashion enthusiasts may have been surprised to see seated among the guests — French billionaire Bernard Arnault, the CEO and majority owner of LVMH and Christian Dior SE. 

Arnault owns one of the most dominant brands in high fashion. Dior carries status, boasting a legacy that includes some of the best creative design of the 21st century.

Dior had revenue of €41.68 billion in the half year ending June 30, with 13.47% growth. Arnault himself is currently worth $233 billion.

These numbers make for great statistics and certainly benefit Arnault and his company’s shareholders. With Dior’s reputation for luxury and excellence, one would expect its CEO to be selling high quality products. 

In June, a court in Milan placed Dior’s production unit under judicial administration for a year after being exposed for labor law violations and a failure to prevent sweatshop conditions in their factories, according to The Wall Street Journal. A full investigation soon followed. 

Investigations by Italian police found a Dior bag listed at $2,600 cost the company just $57 to produce. These margins were possible due to safety shortcuts and overtime hours, according to Le Monde, a leading French newspaper. These practices make Dior’s profit margin $2,543 per bag, making it easy to see how Arnault was able to elevate himself to billionaire status. 

AGCM Watchdog, Italy’s antitrust regulator tasked with enforcing consumer protection laws,  and Guardia di Finanza, an Italian law enforcement agency under the authority of the minister of economy and finance, conducted inspections into Dior’s Italian production facilities.

While Dior denied any wrongdoing, the evidence was overwhelming, uncovering undocumented workers working hours far exceeding Italy’s legal limit while receiving inadequate wages in exploitative working conditions. 

Dior —  and Arnault —  have the financial resources and influence to set a precedent in the fashion industry. The court investigating their supply chain practices stated these discoveries weren’t isolated incidents, but rather arose from a “generalized and consolidated production system,” according to Le Monde.

As the fast fashion industry becomes increasingly pervasive each year, many look for higher quality, more sustainable and more ethical alternatives. This becomes much harder when a brand claiming to emphasize craftsmanship and quality is exposed using shortcuts to save on production costs.

We’re watching high fashion leave high quality behind with each passing season.

On Jan. 20, Arnault was seated in the same room as American billionaires like Zuckerberg and Bezos — owners whose companies are constantly in the press, either for poor working conditions, making shortcuts, or landing themselves in front of a judicial court. While Dior may market itself to the upper class and front as a brand of excellence, these uncovered business practices prove they’re just as bad. 

“The only thing that produces quality is care,” fashion journalist and commentator Bliss Foster said in a Youtube video. 

Dior can keep charging $2,600 per bag and still draw in consumers, because in the end, customers aren’t paying for quality anymore — they’re paying for the name on the bag.

The luxury industry has been boiled down to good marketing and brand awareness rather than appreciation for true craftsmanship. Dior will continue to grow, and Bernard Arnault will continue to amass wealth, but care and quality will be sacrificed along the way.