The Label Is Lying

Luxury's most trusted labels are under investigation. Here is what genuine craftsmanship actually looks like.

The Label Is Lying

When you pay €2,000 for a bag that says "Made in Italy," you expect to know what that means. Most people assume it means the product was designed, cut, assembled, and finished by skilled workers in Italy. That assumption has been wrong for years, and the courts are now saying so publicly.

A series of scandals linking brands including Dior, Armani, Valentino, and Loro Piana to sweatshops in Italy have fuelled serious doubts about what customers are paying for, and whether they can still trust luxury brands. These were not small operators. These were the names that defined the category.

Investigations by a Milan court uncovered ties between luxury brands including Tod's, Loro Piana, Valentino, Dior, and Giorgio Armani and subcontractors allegedly involved in sweatshop schemes. Prosecutors identified a consistent pattern: negligence in auditing supply chain partners. Several brands were placed under judicial administration as a result.

The structure is always the same. A luxury house with a prestigious address outsources production to a network of subcontractors, who outsource again, until the work ends up in a facility that looks nothing like the marble showroom in Paris or Milan. Thirteen leading luxury brands, including Gucci and Versace, were identified as suspected of using subcontractors in Italy who exploited migrant workers. The label said Italy. The reality was different.

This is not a fringe problem. In 2024 and 2025, investigations by Italian prosecutors exposed systemic labour exploitation within the supply chains of several luxury brands. Production had been outsourced to networks of subcontractors who utilized undocumented labour in sweatshop conditions to protect profit margins.

And product quality has followed. One industry expert stated it plainly: "You can only say so much to convince people that luxury is high quality. If your products are falling apart in front of them, then it's not believable, no matter how much you spend on marketing."

Regulatory pressure is building. The EU's Corporate Sustainability Due Diligence Directive and the EU Forced Labor Regulation are both moving toward enforcement, covering all stages of the supply chain. But enforcement begins with the largest companies first. The small workshops that actually make things were never the problem.

What "Made in Portugal" Actually Means

Portugal has been producing leather goods since the 16th century. This is not a trend or a workaround. Portuguese artisans are custodians of a craft tradition that spans centuries, and the leather goods produced here are recognised across Europe for their quality and precision.

The difference between Portuguese manufacturing and what has been exposed in Italy is not just geography. Portugal has established itself as a reputable European leather manufacturing hub, offering comparable quality to Italy and France, with the added advantage of small-scale production, direct relationships, and a craft tradition that attracts designers who care about what they put their name on.

That translates directly to traceability. When a brand produces in a single facility, with a fixed team and a known address, there is no subcontracting chain to audit. There is nothing to hide. You can verify it. You can visit.

LWG certification, one of the most rigorous standards in the leather industry, requires a traceable chain of custody from the tannery to the finished product. It means the leather you are handling was sourced and processed under audited environmental and social standards. Most of the brands currently in the news cannot say that about their full supply chain. They cannot say it about their subcontractors' subcontractors.

Why This Matters Now

According to McKinsey's 2026 State of Fashion report, the mid-market is now the fastest growing segment in fashion. Brands offering real product quality at honest price points are replacing legacy luxury as fashion's main value creator. Consumers are not confused. They are paying attention.

The person reading this is not naive. They know that a €2,500 bag from a brand under judicial administration for labour exploitation is not a fundamentally different product from a well-made piece produced by a known artisan. The difference is the logo. The difference is what you are actually paying for.

At LGDO, every piece is made in São João da Madeira. The address is public. The leather is LWG certified, which means the tannery, the sourcing, and the process are all audited. The zippers are YKK, the lining is recycled microfiber, and the edges are hand-painted. These are not claims made for marketing. They are decisions made at the design stage that have not changed.

The idea behind LGDO came from a memory. A grandfather who never needed to tell you he had quality. You could see it in how he carried himself, in the objects he chose, and in the fact that those objects lasted. That is the only standard that has ever mattered here.

Legacy is not a label. It is what remains when the label is gone.

LGDO is a men's leather accessories brand designed and produced in Portugal. All leathers are LWG certified. All pieces are handcrafted in São João da Madeira.

Explore the collection