Italian Luxury's Dark Side: 1300 Euro Bag, 35 Euro Cost

The Italian Fashion Industry's Dark Secret: Exorbitant Profits, Meager Wages Italy, a global fashion powerhouse, faces a troubling reality. A recent TikTok video by Sara Salerno, a fashion product developer, reveals the vast discrepancy between retail prices and production costs of luxury goods. Salerno, whose insights are particularly relevant given her direct experience, states, "A 1300 euro bag is often paid a mere 35 euros to the subcontractor." This practice is not an isolated incident; Salerno explains that profit margins of 10, 11, or even 12 times the production cost are common. This system, she argues, prioritizes shareholder returns and executive compensation, as evidenced by the 47 million euro bonus received by a Kering executive, over ethical and sustainable production. The video highlights the plight of Italian subcontractors, the backbone of Italian manufacturing. These businesses, unable to form a united front, accept low offers, leading to a "war among the poor" and a decline in standards. Salerno proposes a solution: a collective agreement among producers to refuse work below a certain hourly rate. This isn't about monopolies, she clarifies, but about recognizing the true cost of dignified labor. The lack of effective regulatory oversight further exacerbates the problem. Salerno calls industry associations "totally useless wagons," highlighting the absence of adequate controls and transparency in supply chains. The video serves as a wake-up call, urging for collective action and clear political choices to protect Italian manufacturing before it's too late.