Italy raided factories & found that Armani and Dior bags are made by illegal Chinese workers in Italy who sleep in the workshop and make €2-3/hr. Both companies have been placed under Italian court administration.
Dior paid a supplier $57 to assemble* a handbag that sells for $2,780
Armani bags that were sold to consumers for €1,800 cost €93* to make.
(These don’t include raw materials costs)
People often wrongly conflate higher prices for higher ethical standards.