In Luxury Fashion, What Exactly Are We Paying For?

Luxury fashion has sold itself on craftsmanship, heritage, and moral superiority. But if €4-an-hour labor is behind a €4,000 sweater, what exactly are we buying into?

It’s no secret that the luxury industry is struggling. With the exception of a select few — Hermès, Cartier, Prada and Miu Miu — brands are not doing too well. Sales are on the decline. Luxury fashion, despite all its on-the-surface glamour, is in a “slump”.

This slump is strange, and a bit of an anomaly. Luxury fashion brands have historically done quit…