| Bonjour from a gloriously sunny Paris. I was told by locals to expect plenty of disruptions ahead of the Olympics and the country’s early legislative elections, scheduled to be held over two rounds on June 30 and July 7. And surely enough, my visit has been anything but smooth. 
Banners promoting the 2024 Olympics line the streets of Paris Several centrally located metro stations, including Concorde, Trocadéro and Tuileries, were closed. On the occasions I jumped in a car, I encountered road blocks so horrendous that I was often late, or just cutting it very close. I found myself stuck in traffic en route to Schiaparelli, the first haute couture show of the season, and was sure that I would miss it (not a good look!) Luckily, Kylie Jenner and Gossip Girl actor Kelly Rutherford arrived even later, so I was able to get seated and settled. A close call. 
Chanel staged its latest couture show in the grand Palais Garnier opera house Couture week, which began on Monday and finishes tonight, is fun to attend because you get to gather with well-heeled clients who are there to appreciate — and in some cases, buy — the latest mastery and craftsmanship in fashion. It’s astonishing to see what can be achieved by hand. Arguably, the same can be said of the Olympics — an event that exhibits the world’s finest athletic abilities. If there’s one thing that the two industries have in common, that would be providing a sense of escapism and hope. At a time of great uncertainty — especially with the upcoming elections in France, the UK and US — both offer a welcome distraction to what lies ahead. No surprise then that sports was on several fashion designers’ minds. (More on that in my review later today.) Luxury supply chains are still murkyAmid the Couture shows, I found time to pop into LVMH’s new Métiers d’Art headquarters on Rue de Réaumur in the second arrondissement. Titled La Main, in tribute to its craftspeople, the newly renovated heritage building, with its big shiny doors and suited security, stands out on the otherwise old medieval street. LVMH’s new space plays a significant role as it acts as a connective hub between its brands, artists and craftspeople, and can also be used to showcase the latest innovations from across the group, LVMH Métiers d’Art CEO Matteo De Rosa explains, on a walk-through. 
LVMH’s new Métiers d’Art’s headquarters on Rue Réaumur © Piercarlo Quecchia/DSL Studio At a time when the luxury industry is facing a stream of manufacturing challenges, including scarcity and rising cost of resources, LVMH has been prioritising supply chain acquisitions and investments, De Rosa tells me. And it’s not the only one to do so in the luxury sector, as brands and suppliers everywhere increasingly face questions about their materials sourcing processes and the environmental impact. We all talk a lot about ESG. But what’s become clear in recent months is that not enough is being done across the industry from a social and governance standpoint. 
The Dior supplier accused of exploiting illegal labour is housed in a grey warehouse in the Milanese suburb of Opera © Silvia Sciorilli Borrelli Handbags for Dior, which is owned by LVMH, can sell for more than £2,000. This month, an Italy-based subsidiary of Dior’s was placed under court administration for failing to carry out appropriate due diligence and supervise its supplier. The Milan prosecutor’s action follows two other identical actions taken against upmarket accessories maker Alviero Martini and a Giorgio Armani company earlier this year. The Milan prosecutor declined to comment. Dior, which is not under investigation, declined to comment. Concerns around ESG practices are usually viewed as a fast fashion problem. But years of unprecedented growth for the luxury sector have put pressure on their supply chains. As a result, high-end companies have been shifting towards mass-produced items and the troubling reality is that the luxury industry is evolving in ways that are not conducive to human rights. I asked Natalie Swan, labour rights programme manager at the Business and Human Rights Resource Centre, a non-profit organisation, for her thoughts. Reports of labour exploitation in luxury are pretty serious. Has the situation become worse in recent years? Or are they only coming to light now? NS: We often see low prices and the resultant labour rights abuse as baked into the fast fashion model but those problems are more pervasive than that. I think that, in the past, there has just been more attention on high street brands than big luxury corporations. We see the financial pressure that the industry is increasingly under. When the industry is impacted by challenges such as supply chain shocks and weakened consumer demand, it might also mean a doubling down of some of the worse elements of the business model, which is to put the price and cost of these changes onto the workers and the upstream chain rather than impact profit margins. There is still the expectation that if you are buying luxury, it is something that is very bespoke and created close to home. Often that’s not the case. We shouldn’t necessarily assume that something made near home means good worker rights outcomes. After offshoring to low-cost countries like China for years, changing regulations prompted brands to bring manufacturing back to Europe, so they wouldn’t lose certifications like “Made in Italy” — still viewed as a marker of quality and craftsmanship. It’s also a way for brands to charge a premium for their products. Yet, many brands still say they have limited oversight of their supply chain. It feels like there’s a disconnect . . . how can luxury goods cost what they do, while workers are reported to be paid very little to nothing? NS: The model is challenged. It’s definitely not the workers who are benefiting from these price increases. Companies may say, “well, if we increase our profits, it means that we can keep giving orders to these factories and the workers can keep their jobs.” But what is the quality of those jobs? We need to think more about how wealth and power is distributed along supply chains. The legislative frameworks across the European continent are not best practice. In fact, they have been weakening. Because of changes to national legislation, there is less of an enabling framework to defend labour rights. It’s become harder to unionise collectively and bargain for better terms and conditions. In terms of creating change, investors need to get more clued up and have those conversations with the companies they’re investing in, to show what is acceptable or not in terms of a social license to operate. I don’t think that has necessarily been core to, or even on the periphery, of investment decisions. The full story on luxury’s dodgy suppliers, reported by the FT’s Milan correspondent Silvia Sciorilli Borrelli and I, will be published tomorrow. NewsLanvin Picks Peter Copping as artistic director (WWD) LVMH’s Bernard Arnault emerges as personal stakeholder in Richemont (FT) Shein files confidential paperwork ahead of possible London listing (FT) LVMH picks up clockmaker L’Épée 1839 (WWD) Revolve is buying Paris couture house Alexandre Vauthier (BOF)
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