Anna Wintour, Andrew H. Walker/Getty Images

Luxury companies accused of using cheap labour

Summary by: WWD.com
Date Published: December 05, 2007
The Italian fashion industry was abuzz Monday following the airing the night before of a major investigation into industry practices on the TV program "Report."

The documentary on the national TV channel RAI 3 alleged that luxury companies use underpaid and often illegal Chinese immigrants to craft high-priced bags; top editors consult with brands on their ads and shows, and that Vogue editor in chief Anna Wintour successfully pressured the industry to truncate Milan Fashion Week.

More than 4 million viewers, a record for the program, tuned in to watch "Schiavi del Lusso," or "Luxury Slaves," presented by Milena Gabanelli, who founded "Report" in 1997, and conducted by journalist Sabrina Giannini.

Prada, Fendi, Gucci, Dolce & Gabbana and Ferragamo were among the fashion houses mentioned in the program. Prada's rep Tomaso Galli said, "We don't pocket such high margins as those reported by the show because we have many costs in design, samples, quality control, packaging and we buy and provide the raw materials. All these and many other costs were not taken into consideration by the show." All the others declined to comment Monday.



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