What Dior CEO Delphine Arnault failed to mention in her big interview
Clue: it's to do with an outsourcing scandal in Italy and a €2 million settlement
In this week’s Dark Luxury news round-up
What the Dior CEO didn’t address in her big interview
Deja vu with JW Anderson’s Dior menswear marketing reboot
A preview of a “less predictable” Gucci?
Another Hermès handbag fraud, and the Met’s Rolex detective
The PR campaign to revive a flagging LVMH begins at Dior as Christian Dior Couture CEO Delphine Arnault announces a new era under her leadership. The quote in the headline in the FT, “Quality is key” could be interpreted by some as a subtle allusion to the labour scandals that rocked the reputation of LVMH’s second biggest brand last year.

According to an investigation by Italy’s Authority for the Guarantee of Competition and the Market, workshops which operated 24 hours a day were able to cut costs so drastically that the Dior bag (model PO312YKY) was made for as little €53 and then sold in stores for €2,600. The organisation eventually secured a €2 million settlement from Dior to be paid over 5 years, which many campaigners deem paltry.
Arnault did not address the violations directly in the interview, and the FT only briefly mentions it halfway down in one sentence: “Meanwhile, a scandal involving labour practices at subcontractors in Italy — Dior agreed to settle a probe last month ‘without establishing any infringement’ — has tarnished the brand’s image”.
Her big gamble on Jonathan Anderson in the face of declining sales in a struggling luxury market is about to face its first big test with the debut of his first Dior menswear collection tomorrow. “I’m interested to see what is going to come up . . . in a way that’s very elevated, very qualitative”, said Arnault who needs the Anderson appointment to be a success in her bid to succeed her father, Bernard Arnault, as CEO of LVMH. “The next five years is going to be all about quality in the materials and the manufacturing. Quality is key”.
What the FT failed to ask Arnault was how the brand would manufacture the all important leather goods which form the bedrock of the business and for which it can charge those incredible margins, especially after the €2 million settlement? What about the “quality” of the previous year’s €9.5 billion in sales? How much of that was achieved via these kinds of cheaply made products and huge margins? What kind of “quality” can really be had from a €53 bag?
At the time of the probe Dior defended its position by saying its margins were in line with the rest of the industry. All of this has perhaps contributed to declining sales of leather goods overall and an increase in jewellery. LVMH which relies on leather goods and fashion has seen sales drop, while Richemont, which specialises in “hard luxury” — jewellery and watches, has seen profits rise in a broadly difficult market for luxury overall.
Anderson’s Dior menswear awaits
Amid all of this turmoil and structural change, Jonathan Anderson teased his new Dior men’s collection this week on Instagram with Andy Warhol’s photographs of artist Jean-Michel Basquiat and socialite Lee Radziwill, a bag (of course) with the original cover of Bram Stoker’s Dracula embroidered onto it. All of these references have been used extensively in fashion over the last 20 years. Uniqlo, for instance, where Anderson moonlights, has a permanent Basquiat-branded clothing collection.
Here’s what Eugene Rabkin had to say about the instagram “moodboard” images: “What stands out first and foremost is the sheer banality of the entire thing; the banality of the photos themselves, the banality of using the most obvious, done to death, figures of Warhol and Basquiat (throwing in Radziwill was likely a nod to Dior’s core clientele).” Meanwhile, Puck’s fashion author, Lauren Sherman, was somewhat more generous writing, “Familiar but new, the best feeling”.
Once again, we can’t help but feel it's the business, the inner workings of the Arnault family, the labour scandals, and the slow motion transition out of leather goods and into jewelry that seem to be the most important story here. It’s everything but fashion and creativity. (FT)
Other Dark Luxury News
Demna Gvasalia interview ahead of Gucci debut
A Demna Gvasalia interview by respected fashion critic Sarah Mower sees the new creative director of Gucci reflect on ten years of meme-based fashion provocation at Balenciaga. The journalist attempted to get some kind of taste of what the new Gucci is going to look like during the interview, but to no avail. “I just cannot picture what he’s going to do, for the life of me”, writes Mower. “That’s a positive, I reckon. Fashion now is in dire need of the less predictable”. (Vogue)
The big business of the FROW
Big brands are engaged in an increasingly expensive arms race to get the world’s top celebrities onto the front row of fashion shows and red carpets. Former VIP managers have now switched to acting as intermediaries and agents and broker deals as large as €70,000 for a world famous actress to sit front row, while walking the red carpet for a brand in Cannes can net a famous person up to €200,000 (Glitz Paris)
Labubu-led frivolity sparks China culture war
The frenzy for collectible fur Labubu dolls seen hanging from the designer handbags of celebrities like Rihanna amongst Millennials and Gen Z have become a flash point for an intergenerational culture war in China. Elder members of society, including President Xi Jinping, are bemoaning the infantilization and childish pursuits of young adults who prefer cosplay, toy collecting and computer games instead of striving for professional success. (The Times)
Hermès handbag scam
Jack Watkins, who once appeared on Channel 4’s “Rich Kids of Instagram” has admitted to fraud. Using the appearance of a wealthy lifestyle to lure victims into his scam, he persuaded people to invest in Hermès handbags promising healthy returns but instead spent the money on lavish trips to London, including shopping in Harrods and staying at The Dorchester. (BBC)
The Met’s Rolex detective
A fascinating profile of Detective Sergeant Andy Swindells of the Metropolitan Police’s proactive robbery unit tasked with tackling the theft of rare high end watches in London. Often stolen to order and then fenced and sold by organised criminal networks, Swindells works with luxury goods companies, international law enforcement and The Watch Register to track down missing watches and intercept criminals. (The Times)
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