Luxury’s Italian Supply Chain Reckoning Isn’t Over
Nearly two years after investigations exposed labour abuses in Italy’s luxury supply chain, brands have strengthened oversight and increased audits. But questions around pricing pressure, subcontracting and accountability remain. BoF Global Markets Editor Sarah Kent joins The Debrief to unpack what has changed — and what hasn’t.
In 2024, investigations in Milan revealed factories affiliated with prominent luxury brands were operating under deplorable conditions reminiscent of sweatshops. These workers were paid mere euros per hour, toiling for up to 15 hours daily, and in certain instances, endured substandard living circumstances. The revelations spurred uncomfortable inquiries into how prestigious brands could maintain such a scant understanding of factories nestled near their manufacturing facilities in Italy.
Since the probe, implicated brands have bolstered internal controls, augmented factory inspections, and curtailed subcontracting. Nevertheless, labor advocates argue that the situation on the ground remains largely unchanged nearly two years later. This week, BoF’s global markets editor Sarah Kent engages senior correspondent Sheena Butler-Young to probe whether the luxury sector's response has tackled the core issues of exploitation or merely introduced extra layers of compliance around the same fundamental business practices.
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