The Brutal Cost of Quiet Luxury
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- Опубликовано: 12 мар 2024
- Paying $34,000 for a winter coat may seem outrageous, but the hair of wild camelids in the Andes mountains of Peru can fetch such prices. Fashion house Loro Piana sells a sweater for $9,000 with vicuna hair collected by members of the indigenous Lucanas community. But despite their contribution, the community receives less than $300. As the top global buyer of vicuna fiber, LVMH-owned Loro Piana's secretive supply chain highlights the use of cheap labor among Peru's least fortunate to make some of the most expensive clothing in the world.
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So this entire community earns less collectively per year than 1 Loro Piana coat? Insane
At that stage I'd be starting a co-operative to wrestle back some control.
Wow!!
Capitalism broke decent people.
Honestly, i don’t think that someone who has LP coat money got rich by caring for the poor.
that's right, pls help us
I am peruvian and yes, this shows our underdevelopment. Thanks for bringing this to light, the local media seldom, if ever, shows it.
Yo diría muchos compatriotas casi no escuchan ni se enteran al respecto de la realidad de la cría de vicuña. They[limeño media] barely mention how it is sold at 30k usd in Europe and that's it. Such is the nature of Limeño media.
@@al_caponeh6185 Si soy de Lima y eso es verdad, se ignora mucho la realidad del pais, y muchas cosas se aprenden por medios, ya sea sociales o de la prensa, extrangeros. Es una pena, no se cuando vamos a cambiar.
@@al_caponeh6185 En Lima si no negocias, mueres, pero tienes propiedad privada. El problema acá es la falta de capitalismo, no son dueños de las vicuñas ni de las parcelas donde ellas viven, los que organizan la comunidad se quedan con todo y le dan a Loro Piana.
Agredece a Velasco por estas cosas.
This makes me so mad because Peruvians aren’t even asking for much. Just a decent income, that’s it. They are not asking for thousands to build swimming pools in their backyards. Just a little money for their effort. LVMH is a billion dollar company, they can afford it. They can’t even build a clinic for these people?
They got their money by screwing many people over as did the overwhelming majority of large companies and rich people
the real question is, why isn't there a competitor to drive up the prices?
Trillion*
@@GameFuMasterLVMH will buy it's competitors, just like any other businesses.
This question can also post to iPhone, MacBook etc
@JG-MV that's just too bad. They are people too.
So quiet luxury and fast fashion are both brutal in terms of its production.
Right! Someone is always being exploited
@@climactic Its case specific, the are luxury fashion houses that make things by hand. If it is LVMH or Kering yeah someone is getting exploited.
Peruvian people are excellent textile makers by tradition, they just need someone to advise them so that they can make the products themselves. The most important thing is that they have the raw materials.
👏 there are in Peru textile engineers experts in vicuña fiber processing, only a quick nudge to the market, and the knowledge should reach this community.
They complained that there is only one buyer. But really, if they get together, there is only one seller. Many industries in poor countries don’t take advantage of this.
Sure, that’s one step. But then they have to have access to the market and buyers too.
this is the solution, how to make it happen?
sounds like them owning the means to their production.
Boycott the Italian luxury brand. Keeping people poor when their labor and animals provide luxury is disgustng. Now the story Is out.
💯✅
It’s all the luxury brands
you need to be their clienteles first to boycott it, how can we stop buying something we can never afford :D
Loro Piana, remember the name..
LVMH
Remember this is the Arnault family
Shout out @SalmaHayek
I' am not buying from them anymore .
lol
@@yahirzamalloa8108 that's Kering - aka Gucci, balenciaga etc
I am from India and this documentary opened my eyes to the true cost of luxury, quiet and loud. Thanks, Bloomberg!
Luxury fashion is more ethical is only a myth, they pay their sources poorly, burn what doesn’t sell and not even necessarily made to last. It’s just a monopoly game for a handful of people.
"Ball of Vampires" as V.Putin said
I didn't know about this, thank you for this doc
The same situation is still happening in the Navajo nation in Arizona, at the famous Athalope Canyon. During my half day visit, I learned from the tour guide that the community still does not have running water at the famous tourist attraction! Not all homes has running water! This is in Arizona!
These workers need to unionize and come together and set their wages and other price of the wool. The fashion houses can't get the wool themselves- they need them.
they are also being cheated by "the community". the leaders of the community are keeping most of the money.
They don't have excess to higher education to think in terms of macro economics
@@___beyondhorizon4664 even if they did i don't think it would help them that much without anyone backing them, it seems that the people who actually know exactly what is going on and how they are supposed to handle the situation , are not doing nothing ! probably they are being bribed , it s not hard for the local goverment to help these people , but they don't do it
Peru, my country, really has a lot of potential, but as we see, its authorities, whether state, government, municipality, mayor, care little about the social and economic development of those who are in the front row.
thank you for this comment. It sounds as if the community is not paying them, but, paying themselves. If Loro Piano paid more they still wouldn't be better, off. Just the "leaders". I have lived a long time in Peru and my business is working with artisans.
Pero quienes apoyaron las matanzas de boluarte? La misma población
Is there another source for vicuna fiber? If not, the Peruvian govt should step in and buy all the fiber at a reasonable minimum (aka set a floor). Then turn around and sell everything to LVMH for a cost plus markup (to manage the program). Herders make money, costs the Peruvian govt no money, and LVMH either makes a little less profit, or raises their prices to people who seem to be price insensitive..
A socialist opinion.
Who pays for the margin difference? The government? Who sustains the government? WE THE PEOPLE.
Can you think about a solution that doesn’t involve the pockets of peruvian taxpayers??
Price control will make it worse. The industry will use alternative raw materials.
Giving more power to a Latin American government I wouldn’t do that, if government in the “west” are corrupt, Latin America ones come in second and in first African governments imo.
Look how Coca-Cola own the Mexican government ect😂
@@thinclient5318sure but do u think the industry will use an entire different material and change their marketing and their product line up just because the raw material went up by 3x but you were selling it for 1000x markup profit previously? i dont think so, u dont even break a sweat. 😂
A 3rd world government will be too corrupt & weak to pull this off before one of the richest companies in the world.
Poor animals... vicuñas are so beautiful and peaceful
Thank you so much for exposing this greed. These beautiful animals and the people that care for them deserve much more.
I don't quite understand this one, sure LVMH could switch to another fibre, but Vicuna is unbelievable its like silk and wool put together, its one of the best fibres in the world, and its only made here, so in-fact the Peruvians in this community have a total monopoly and should band together to ensure its sold for a fair market price.
LVMH is the main buyer so it sets the price
They are being robbed
Capitalism.
@@johnhowe997false. It is a bad deal. 5:45. This report helps to the process of discovery, capitalism works really well.
This makes me so mad, the people deserve a fair payment. I hope this video reaches more people to spread awareness.
Backward integration is needed here. Marketers will always be marketers, it is up to the Peruvian govt and the people of the community to think outside the box.
Unless the Peruvian govt is in a way benefiting from such monopoly.
@JG-MV Ha...unless they can too benefited-having a piece of cake...
As French, I fill so ashamed of what LVMH does here
Vivo en Perú y acá mismo un abrigo de vicuña cuesta cerca de $10 000. Es un robo al trabajador peruano
Yo compré en Cusco un chal de vicuña y era carísimo , es absurdo el valor en que están vendiendo la fibra de Vicuña! Los están estafando y el gobierno peruano? Cri cri cri … el colmo! Que rabia!
lol I remember the brand Loro Piana when I was in college. I used to love sweaters and would shop at Off5th Saks to get deep discounts on luxury sweaters but I found a simple elegant one but when I found one I saw the price tag it was $900 on clearance. I quickly put it back lol.
The truth is that luxury fashion products are all about branding and marketing. The raw materials do not matter. These companies can make coats from recycled garbage and consumers will still pay tens of thousands dollars for those garbage.
the truth is LVMH ceo and shareholders which they were all bobby axelrod +logan roy
They already make clothing that assembles the "homeless aesthetics"
That's true. The appeal here may also be the legitimately constrained supply.
The truth is, that high quality raw materials is the basis of luxury.
Luxury brands all start and are made famous for their quality.
Toward the end of the video, locally knitted vicuna wear is shown, presumably sold directly by the Lucanas. How much do they get for that? If it is more profitable, just stop selling to Loro Piana and sell your locally made items. If it is less profitable, I guess they're better off continuing their sales to Loro Piana.
However, there's a business case to be made here: If the Lucanas can get property rights to their land, they can develop cooperatives and generate more profits for themselves by controlling production, processing and shipping. This is exactly what European farmers started doing in the 19th century. It brought them from abject poverty to considerable prosperity in just a century.
Excellent idea! I totally agree!
This is it! Cooperatives 🎉
Guys, you can start making yarn out your vacunas and directly sell online for the knitters from all over the world! I am an avid knitter and would love to buy! Please pass this idea along to Peruvian community.
The living conditions for these people are not improving are due primarily to these factors: 1. lack of education, 2. corruption in local and federal governments, including law enforcement, 3. lack of infrastructure. 4. lack of abundant useful natural resources
The first two are recurrent meta-structural explanations for underdevelopment. Economic development in historical perspective shows that neither education is needed as start point (Ha-Joon Chang, 2011) or corruption delays it (Ha-Joon Chang, 2007). Infrastructure is essential indeed but it's a consequence of a protective economy and incentives for incipient industries by the Central government (M Gullo, 2019). About availability of natural resources, Perú and Ayacucho have plenty of them, we even specialize our economy on primary extraction, which one of the basal causes for underdevelopment. In Ayacucho, in particular, there are Pb, Au, Cu, Ag mines.
Mistaken. Number 3 & 4 are error. In this industry, vicuna fiber you dont need so big infrastructure: Incas and peoples dealing with this centuries before proves it, as to number 4, Peru is rich and blessed with plenty of "natural resources". Vicuna fiber is but one example.
Excellent work❤
It will change soon, a few investors are looking to take over the area alongside the people living there and provide a better income so they can flourish alongside us, Loro and anyone else will have to pay a bit more if they want the same material. Or You can boycott Loro Piana and others by simply not thing their products and pay the people in Peru directly for the material and there’s tons of local artisans who can make the same clothing for you!
Wow I wonder what Selma Hyack has to say about this?
That's haram, or something like this 🤣🤣🤣
She is enjoying the benefits.
By the way, she comes from a business driven family.
Her husband owns Kering, a competitor of LVMH
The price and rarity prevent the animals from being exploited by overproduction demands. But yeah, labor should get a cut of the action that's realistically fair.
Muy interessante el reportaje!
They also hold a monopoly on Vicuña wool. Come together and negotiate a better price. It’s not the job of some public company halfway around the world to worry about your well-being.
Peruvians are some of the nicest people I have ever met. There is no reason to have a middle man unless they can't ship or transform the product into the final form (clothes). If Peruvians can vertically integrate the business on their own and ship the product, they would make more money. The video just barely glossed over that part at the end though, about the "government implemented any policy to make that a reality"
Raise the price! From who else would they buy? 🤷♂️
Violent middlemen, layers of supply chain, a lot a lot more than just simple price hike
You are watching propaganda, the local leaders are benefiting exploiting their fellow townsmen, since in that part of Peru there is no private property, only communal ownership.
There are vicuñas in Bolivia too
@@nicolelopez8897 I dare you to do business in Bolivia lol
Vicuña clothing are also being sold by Loro Piana from Bolivia and Argentina, so they certainly do have other sources already, but Peru should still have the bulk of world production.
Still they should raise the price. While this video appears to place the blame solely on Loro Piana, it seems they glossed over the potentially corrupt government officials and middlemen who pocket allow the raw material price to get to this point. I’d wager they probably get kickbacks at the price of their countrymen’s livelihood
All you talking about loro piana , well kuna or Michell group also sell products made of vicuna , guanaco quite well expensive .
Peru pais sin alma ....gracias por el reportajes
They're also wild animals, unlike the Llama and Alpaca. Vicuñas and Guanacos are their wild ancestors.
There are other fashion brands that also sell vicuña fiber garments, but for a fraction of the price LVHM charges. In reality people buy the brand, not the product.
En Perú mismo nos venden un saco de vicuña a us$ 10 000 y no es de LVHM
The concept that foreign companies will bring income and development for indigenous people falls flat as one can see. And that's why governments are required to step in with harsh/strict regulations, otherwise they will be looted as East India company looted India and many international firms continue to do so globally.
Typical exploitation in the world.
I'm sure they get a fair price. What makes you think a t-shirt is worth 2400$
@@bounceday lolllll
@@lyrilljacksonsocialist dreamer laughs
@@bounceday You obviously havent follow the matter here.
This needs to be seen by the Peruvian govt
I suppose their government knows everything well and maybe even wears Lora Piano’s shoes
@@Armantomato Not the shoes, but see the pittiable way peruvian president tries these day to explain how she got 2 or more Rolex that she wears shameless in public. Shes an statal official and always been a public employee earning now ca. 5000 US. People in the government are so ignorant that I reckon they dont know Loro Piano, the sole thing they know is to steal and plunder.
That grouping technique is not a funnel, but a traditional chaku. Whereas vicuna cannot be "farmed" cause is a wild undomesticated species, unlike llama and alpaca.
How many of those vicuna product did loro piana sell at their full asking price?
What this people don’t understand is that they could also use that cheap material and make there own garment.
It seems sad that they are not paid what they are worth but without the sales of this special wool these ppl would have nothing
El Chapo will give more $$ for them wool. Explore new markets.
Aquie está tu chapo .l.
Can government step in and act as a mediator? Or this is because anywhere else from Loro Piana this wool costs nothing?
You do not have to sell your wool to them - find a new buyer.
The situation is awful for the community but the solution is simple. Piana can't go anywhere else. The government needs to step in and set a minimum price for the product. Rich people willing to pay $25000 for a coat will also be able to pay $30000. The misery of these people is unnecessary.
I blame Gstaad guy for the popularisation of vicuna fiber
I doubt the people who buy those even care about the exploitation, its highly likely they gained there wealth through other exploitation.
10:18 I’m genetically mostly Peruvian - surprised! So I’m going to say keep your supply chain small at home. Young people are designers, weavers, pattern makers. Someone give grandma a nice cozy house for her arthritis - let her rest. Maybe a day spa retreat!
This is obscene
It does bring up a disturbing thought, what else is LVMH up to?
How can we do something?
Bring awareness of the situation to a wider audience, write to that company etc
Boycott LVMH, it is time.
This is utterly ridiculous! Disperse the profit where it belongs-with the WORKERS
Why you guys don't just raise the prices... you control the supply chain...
That's why people need to remember the damage that the richest of the rich create with every passing minute. We definitely don't need to dream of having such a lifestyle!!
"Ball of Vampires" as V.Putin said
Why cant they say no to LVMH
the "community" is cheating the workers. yes, LVMH is paying to little, but, the community is cheating the workers. read the comments from Peruvians.
Vicuñas are the wild ancestor of the alpaca.
They should increase the price of the animal wool
They need education. Knowledge= power.
Knowledge= skills ( to make products, brands, marketing)
Knowledge= insight in the market
Knowledge= insight in supply/demand
Knowledge= insight in trade skills
Knowledge= real life knowledge. Nobody gives you anything in this world if they don’t fight for it.
Knowledge= the insight that « hard work» alone get’s you no where in this life without intelligent planning/organization
Knowledge= realism. The global consumer is amoral and pay for quality, image. The suffering of the producers are forgotten after the trendy woke consumers has told their « virtue speech» at a fancy lunch. Pretending to be virtues.
Knowledge: they need to adapt to reality, not fantasy. That is adapt to the gloabalised capitalistic world. This lifestyle will not survive. The world is a brutal place, even if they have lived this way for 10000 years, it could end tomorrow
Y como aguantan tanta injusticia?!!!!! No le vendan a Loro Piana, hay otras empresas
POR QUE ABUSAN DE LOS MAS POBRES. 🤬
HASTA CUANDO SEGUIRÁ ESTO.
De la Ignorancia... Es por eso la importancia del estudio ...
@@JoshuaKing-ue4vcno hay que ser científico para saber que es un robo. A veces compro de la marca peruana KUNA pero de baby alpaca y veo que un abrigo de vicuña cuesta us$ 10 mil. Creo se necesita inversión en este caso del estado y no me vengan que por ser empresa del estado va a arrojar pérdidas ya que el margen es gigantesco
Why don't US ban Loro Piana or LVMH
Because they're Italian and not Chinese
Because doing unethical business is not illegal.
Welcome to so called Capitalism world
Because it’s in the interest of the Americans. But you are right, we should ban LVMH and “business” like that, they only harm the world. We don’t need them.
Because it doesn’t affect national security.
Biggest price is paid by the abused animals.
How sad, hungry luxury buyers should see this show.
Someone please send this to Ramit Sethi.
Why did you show this? Now the Chinese are gonna come to Peru and take Vicuña to china and profit from it in a mass scale. Like they did with seeds of native Peruvian produce a few years ago. You could see Chinese people in remote areas of Peru asking about the benefits of native products, and buying or getting their seeds. Why did they do this?
Is a heavily protected species in Peru, as of last month they were only around 7 businesses allowed to use vicuña. But honestly who knows, you may be right cus the Loro Piana thing I’m very sure started because of the government and I can see them messing up again, and worse this time
“Take” and not purchase?
This pisses me off to new heights. I will never buy Loro Piana again.
government should be of help but most likely government has its own benefits from LVMH
in Peru 1% of the population owns almost the 30% of the entire nation wealth
Deberian tener un hospital para los vicuñeros exclusivamente y un equipo médico con todo el equipo necesario para sus revisiones medicas de manera regular. Deberian tener un comedor comunal para ellos con un cocinero que les amntenga alimentados con una buena nutriciøn. I hope this message is being viewed by Loro Piana and the rest of the producers. This is totally UNFAIR
Peruvian owners of these farms are rich
Arnault didn't get rich ethnically. Why is this a surprise?
My gosh. So sad
Shame on LVMH
Then why dont they sell to someone else?
Argument for LVMH is that they have been the ones to bring this fiber to life.
They take this fiber to their textile experts who bring it to life in fabric. Many many designers would like access to this but can’t as there is no other manufacturer to have this in fabric.
They’ll have much better luck having selling it by fabric
What a horrible brand
El compatriota es el peor explotador.
This is shocking and absolutely disgusting. Thought it was bad enough Putin seems to be a cover model for the brand but this adds to how dirty this company is. LVMH-shame on you, not cool.
I visited Peru. Their mineral wealth is substantial, and have everything needed for an all-sector economic boom. However, the constant, desperate low-trust nonsense and general Latin spirit of irresponsibility is like a lead weight around the ankle of someone treading water. Also, the Peruvian urbanite is amazingly lonely, even compared to the US or China.
It’s expensive because people are buying them.
Who is buying a 30k winter coat though?
Raise the price of your product due to sacristy and uniqueness and LVMH will have to comply. Or what? They will make a $33k polyester coat?😜 nah. You have the upper hand still- they need you more. So raise the price.
True luxury can never be created by exploitation.
Typical Bernard Arnault
Buy less, wear longer, boycott bad brands. Save the money to lift others from poverty. Let love be our fashion statement, for the rich has enclosed the commons and flogged the working people to destitution.
Are they farmed or are they roaming in the wild?
Roaming wild - it is forbidden in Peru to have domestic vicunas because they are endangered species :(
They are a wild species, you can't farmed vicuñas.
Capitalism at it's best
No, monopoly and lack of information at its best. The main issue here is that these communities are not organized; they do not process, transport, etc. They sell a super raw produce with low value.
They should ban this.
LVMF
Capitalism at its best
Se llama capitalismo salvaje
is monopoly but also how many jackets they sell i mean how many people are buying those 30k jackets and how often...
Down with the wealthy!
This kind of activity is not capitalism. No monopoly may exist in capitalism because it destroys competition which is a foundation of capitalism!! This monopoly can be stopped by refusing to sell the raw material at artificially low prices.
Refusing to sell means poverty and destitution, this is late-stage capitalism, where the means of production are not given their fair due.
They are managing the extraction of the resource, as private enterprise. The failure is not rapidly respond to market changes. They need more market and technical knowledge to increase the value of their fiber.
Market solutions are need it.
@@TalEddsfancy words be careful, neomarxist ideas only create poverty
This just sad
Let's just call it what it is: economic colonialism. And this is just one small part of the whole capitalistic infrastucture of the economy. Think about it: "capitalism" to capitalize on others