Luxury fashion: Workers endure modern slavery as prices spiral out of control
The link between fashion and sweatshops becomes increasingly entangled. According to Capasa (CNMI), labour exploitation in the industry is an “isolated phenomenon.” But is this truly the case? Or has fashion been wholly absorbed by finance, dominated by hedge funds and pure capitalism? The question strikes at the heart of today’s debate about fashion’s ties to the global economic system.
Recently, Italy’s Antitrust fined Armani €3.5 million for “unfair commercial practices,” accusing the brand of misleading consumers by using social responsibility as a marketing tool. The group responded with “dismay and astonishment,” vowing to appeal.
From greenwashing to social washing, the playbook is familiar. But what’s the point of penalising a single luxury brand when the issue is systemic?
Fashion and sweatshops: Isolated incidents or structural crisis?
Publications like Business of Fashion often frame labour exploitation as an “Italian problem.” Yet when Dior—a French brand owned by LVMH—faces similar scandals, it becomes clear the decisions driving exploitation aren’t made by the artisans sewing handbags in Italy. Corporate boardrooms dictate them.
While independent brands and fashion countercultures might seem like authentic alternatives, the industry as a whole remains deeply entrenched in global capitalism, ruled by conglomerates (LVMH, Kering, Richemont) and private equity.
Fashion in the grip of finance
Is fashion truly free, or just another capitalist tool? We celebrate it as a creative expression, but how much autonomy does it really have? These forces are shaping how we experience the industry today:
- Luxury giants & shareholder rule – Publicly traded empires like LVMH (Louis Vuitton, Dior, Fendi) prioritise profit margins, scalability, and acquisitions. Fashion is no longer about creativity—it’s a financial asset.
- The privatisation of taste – Trends are engineered: pre-fall collections, “resort” lines, and limited-edition drops exist solely to fuel hype and endless consumption. Even “underground” movements (streetwear, sustainability) are swiftly co-opted.
- Extractivist fast fashion – Shein, Zara, and H&M epitomise hyper-capitalism: exploitative labour, planned obsolescence, and algorithms (not designers) dictating trends.
Is change possible?
Resistance exists—but is it enough?
- Slow fashion: Timeless, ethical designs that reject disposability.
- Vintage & second-hand: A quiet rebellion against overproduction.
- Independent brands: Fleeting oases before acquisition or collapse.
Yet, as long as fashion remains a multi-billion-dollar machine, these remain mere drops in the ocean. Finance still dictates the rules—and profit will always outweigh ethics in boardrooms.
Final thoughts: No more illusions
Let’s be blunt: Fashion and sweatshops are deeply connected. The system of deliberately opaque, low-cost subcontracting isn’t an “isolated phenomenon” (apologies, Mr. Capasa)—it’s the beating heart of modern capitalism. Extraction. Exploitation. The relentless pursuit of cheaper labour.
This isn’t just about fashion. It’s about what we value:
- Should clothes be financial instruments or cultural artefacts?
- Can creativity survive when quarterly reports matter more than craft?
The uncomfortable truth? There’s no ethical fashion under capitalism—only degrees of complicity.
So this leaves us facing the radical question:
Can we imagine post-capitalist fashion? Or is it doomed to serve profit forever?
What do you think? Is there room for radical change—or is this just idealism?