Inside Luxury’s Secret India Supply Chain

Bloomberg Originals

28 Sept 202308:00

Summary

TLDRThe video delves into the hidden role of India in the luxury fashion industry, revealing how many high-end brands, despite boasting labels like 'Made in France,' rely heavily on Indian artisans for their intricate embroidery. It highlights the disparity in labor conditions and the secrecy surrounding supply chains, emphasizing the need for transparency. The narrative showcases India’s rich craftsmanship and the shift towards recognizing its contributions, as exemplified by Dior’s recent collection in India, aiming to celebrate both the artisans and the cultural heritage behind luxury fashion.

Takeaways

🌍 India plays a crucial role in the luxury fashion industry, often overlooked by consumers.
👗 Many luxury brands, including well-known labels, rely on Indian artisans for intricate embroidery work.
💰 The luxury fashion market is valued at around 180 billion euros, with a significant portion of production occurring in developing nations like India.
🤫 Luxury fashion houses have historically concealed their ties to low-cost manufacturing countries, prioritizing profit margins.
🏭 Working conditions in small subcontractor factories can be poor, with artisans sometimes sleeping on the factory floor.
📉 The term 'Made in France' is often used to enhance perceived quality, despite substantial labor being conducted in India.
🔍 Transparency in supply chains is essential for protecting vulnerable workers in the garment industry.
🧵 A case study highlighted a high-value jacket that took over 2,000 hours to embroider in India but was labeled as 'Made in France.'
✨ Dior recently began acknowledging its Indian suppliers, marking a shift in how luxury brands promote their artisanal connections.
🚀 The 'Made in India' label is gaining recognition, fostering a new generation of creatives who advocate for fairness and transparency in fashion.

Q & A

What is the relationship between India and the European luxury fashion industry?
-India plays a crucial role in the luxury fashion industry, often providing essential craftsmanship and production for high-end brands while remaining largely unrecognized in branding.
Why do luxury brands prefer labels like 'Made in France' or 'Made in Italy'?
-Luxury brands believe that these labels enhance their products' perceived value and quality, despite significant portions of production occurring in countries like India.
What are the working conditions like in Indian textile facilities?
-Working conditions can vary significantly; while some facilities are safe and well-ventilated, many subcontractors operate in poor conditions, where workers sometimes sleep on factory floors to save on rent.
What historical significance do Indian embroiderers hold in the luxury fashion sector?
-Indian embroiderers, known as 'karigar', have traditionally been recognized for their skilled craftsmanship, which has been a vital part of luxury fashion, dating back to times of royal courts.
How has the luxury fashion supply chain obscured India's role?
-Luxury brands have historically hidden their ties to India to avoid negative perceptions regarding labor practices and to maintain a facade of exclusivity linked to Western production.
What changes are being seen in the fashion industry regarding transparency?
-There is a growing demand for transparency, with advocates emphasizing the need to acknowledge the origins of products and the conditions under which they are made.
What specific case study was mentioned regarding a luxury garment?
-A jacket embellished with micro-mirrors was cited as a case study, highlighting that while it retailed for nearly 43,000 Euros, most of its embroidery work was completed in India, despite being labeled 'Made in France'.
What recent initiative did Dior take in India?
-Dior showcased a collection in India, marking a significant step toward recognizing and promoting the country's artisanal contributions to luxury fashion.
How has the perception of 'Made in India' evolved in the luxury fashion industry?
-The 'Made in India' label is increasingly seen as a mark of quality and craftsmanship, reflecting a shift towards greater acknowledgment of Indian artisans in luxury fashion.
What impact does the 'Made in India' label have on the industry?
-It fosters recognition of Indian craftsmanship and empowers workers, promoting fairness and transparency in how luxury brands credit their suppliers.