From Regret to Revenue: Dior Bags Spark Backlash Amid Record Sales

Dior, a representative luxury brand from France, has become a hot topic due to some customers expressing regret after purchasing their bags. Despite the hefty price tag, ranging from a minimum of $720 to over $7,215, Dior bags have garnered immense popularity, achieving over $721 million in domestic sales.

According to the electronic disclosure system of the Financial Supervisory Service in April this year, Christian Dior Couture Korea, which operates Dior in Korea, achieved a sales revenue of $1.05 billion in 2023. This represents a 12.5% increase compared to the previous year’s $670 million.

Last year, Dior joined the KRW 1 trillion club for the first time by achieving over KRW 1 trillion ($720 million) in domestic sales along with Louis Vuitton and Chanel. According to the industry, it was anticipated that Dior would break the annual sales revenue of KRW 1 trillion.

Dior previously recorded a sales revenue of $442 million in 2021 and then saw a 52% increase the following year, achieving $670 million. It has been on a continuous growth trend for the past few years.

Despite its high sales and popularity, some voices express regret after purchasing Dior bags. A YouTuber posted a video titled “Regret over Small Lady Dior Bag, Scratches on Lambskin after 4 Months.” The YouTuber claimed that the Dior bag which was designed with lambskin easily gets scratched, expressing disappointment.

Another YouTuber also uploaded a video titled “Regret Buying a $3,960 Lady Dior Bag.” This YouTuber also expressed regret, stating that although they love the design, they don’t use it often due to the material.

Dior recently stirred up controversy when it was revealed that the production cost of a bag priced at $2,550 was only $68. It is generally assumed that luxury bags are meticulously handcrafted by artisans, but this was not the case.

According to Bloomberg and Reuters, the Milan court in Italy issued a judicial administrative preventive measure against Dior SRL on June 10. Dior SRL is the bag manufacturer for Dior’s Italian branch.

The Milan court in Italy took a strong measure by appointing a judicial administrator to supervise Dior SRL for a year. The company is accused of neglecting and encouraging labor exploitation by subcontractors in China.

According to the court documents, four subcontractors in China producing Dior bags are known to have subjected workers to long hours of labor, including overtime and working on holidays. Moreover, workers were forced to take naps at their workstations due to the requirement to operate the production line 24 hours a day.

Furthermore, the company allegedly engaged in illegal activities such as removing essential safety devices to increase work speed. According to media outlets, the company supplied each Dior bag at $68 while Dior sold these bags for $2,550.