It seems that the crisis in the fashion industry is never-ending. While last year was marked by dramatic changes in creative directors, this year the spotlight has turned to production chains, the real heart of the fashion industry, which is clearly beating very weakly. Long-standing problems are resurfacing, primarily labor exploitation and ambiguities surrounding the "Made in Europe" label.

Following recent accusations that some brands have moved most of their production to China, with only the finishing touches being done in Europe, the Italian fashion world has been rocked by the Valentino Bags Lab scandal. This company, controlled by the parent brand Valentino Spa, was placed under judicial administration by a Milan court at the end of April on suspicion of exploiting workers in subcontracting workshops run by Chinese entrepreneurs.

The appalling conditions uncovered in the workshops

The investigation, which began in March 2024, focused on seven workshops in the Milan and Monza areas. The results were alarming: inspectors found a total of 67 workers, 9 of whom were employed illegally and 3 were illegal migrants. Some workshops even had illegal dormitories, which allowed non-stop work without breaks, including night shifts and holidays.

Testimonies revealed inhumane working conditions – extreme overtime, wages well below the minimum wage, and a complete lack of safety and training. The machines had no safety measures, and the hygiene conditions were disastrous. The handbags were produced at absurdly low costs of between €35 and €75, with the final retail price ranging from €1,900 to €2,200.

Fake companies and parallel production

Even more disturbing was the discovery of three fictitious companies that existed only on paper – their purpose was to simulate production, issue false invoices, and block inspections. It was essentially a parallel production system that operated without any regulation and exploited vulnerable workers. The owners of these companies, all Chinese citizens, were charged with labor exploitation and safety violations and fined a total of over €320,000.

Valentino's responsibility

Although Valentino Bags Lab itself was not formally charged, the Milan court recognized its responsibility for insufficient supervision of its suppliers. According to the court, the company should have been aware of the risks associated with the production process, especially since similar cases (such as those involving Christian Dior, Armani, and Alviero Martini last year) were already public knowledge. Valentino now faces a significant loss of credibility and criticism that calls into question the brand's transparency and ethics.

The Valentino case is part of a broader problem facing the Italian fashion industry, which is facing increasing challenges. Many Italian brands are now in the hands of foreign giants, while small manufacturing workshops are struggling to survive. This situation raises the question of whether the "Made in Italy" label still has any real value or is merely a marketing label intended to justify high prices. The Valentino scandal has exposed a dark side of the luxury industry, which must urgently rethink its production processes in order to preserve not only its reputation but, above all, the trust of its customers.