In the world of high fashion, the phrase “Made in Italy” has long stood as a hallmark of craftsmanship, quality, and above all, trust. But beneath that prestigious label, cracks are beginning to show.
Valentino Bags Lab Srl, a manufacturer of handbags and accessories for the luxury house Valentino (Valentino SpA), has been placed under judicial administration by a Milan court over suspected labor law violations. While the company operates as a legitimate factory supplying luxury products, it is now accused of subcontracting production to Chinese-run workshops with harsh labor conditions, raising serious concerns about its ethical practices.
A Structural Flaw Revealed by Lax Oversight
According to the court, Valentino Bags Lab failed to supervise its subcontractors in pursuit of profit, neglecting to assess production capacity or working conditions. These findings were brought to light by an investigation led by the Carabinieri’s labor protection unit under the direction of public prosecutor Paolo Storari.
Between March and December 2024, authorities investigated seven Chinese-operated workshops near Milan. They found 67 workers in total—nine of them unregistered and three undocumented. Many workers were reportedly forced to sleep on site and work in continuous shifts, including on public holidays.
To accelerate production, safety devices on machines had allegedly been removed, and electricity usage data confirmed round-the-clock operations.
Production Costs at €75, Retail Prices at €2,200
At the heart of the issue is subcontractor Bags Milano Srl, which has served as Valentino Bags Lab’s sole partner since 2018, producing approximately 4,000 bags per month. Each item reportedly cost just €35 to €75 to manufacture, yet was later sold under the Valentino name for €1,900 to €2,200 at retail.
Bags Milano is also believed to have further subcontracted its orders to other Chinese-operated facilities. Authorities are now investigating the executives of those suppliers for labor exploitation and the employment of undocumented workers.
A Broader Industry Reckoning
This marks the fourth case since December 2023 in which Milan’s judiciary has intervened in the fashion sector. Prior incidents involved Dior, Armani, and Alviero Martini SpA, all of which were placed under judicial supervision and later released after implementing corrective measures.
Despite these precedents, the court strongly criticized Valentino Bags Lab for “continuing to work with suppliers who exploit workers and use labor in violation of safety regulations.”
According to Bain & Company, Italy currently accounts for 50–55% of global luxury goods production, much of it supported by networks of small-scale subcontractors. Within that structure, however, some businesses have managed to sidestep regulation and perpetuate exploitative labor practices—problems now resurfacing under legal scrutiny.
At this stage, neither Valentino SpA nor Valentino Bags Lab has been criminally charged. Nonetheless, the court has ordered Valentino Bags Lab to implement a labor-compliant operational framework within one year. If the improvements are verified earlier, judicial administration may be lifted ahead of schedule.
Does Brand Value Have a Future Without Ethics?
The “Made in Italy” label is more than a geographic marker—it’s a promise of excellence and integrity. That promise is only as strong as the systems behind it.
As the luxury industry continues to trade on price, prestige, and storytelling, all of which rely on the foundation of trust, perhaps now is the time for brands to reexamine the values they claim to uphold—and whether their supply chains truly reflect them.
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