Key Takeaways:
- Recent investigations in Italy have uncovered serious issues in the supply chains of major luxury brands, including illegal working conditions and worker exploitation. This is part of a systemic problem rather than once-off incidents, as well as a broader global issue of workers’ rights violations in the fashion and textiles industry.
- Despite challenges and past failures in the AI-wearables market, the Iyo One earbuds are a fresh attempt to integrate AI technology into consumer products. With its AI-enhancements while also being quality headphones, the Iyo One may be able to differentiate itself in a competitive market.
Just Released: The AI Report 2024
Yesterday, The Interline launched its first-ever AI Report, available to download for free and completely un-gated, that packs in exclusive editorial from a range of industry perspectives, detailed technology vendor profiles and executive interviews, and our initial baseline market analysis for AI in fashion.
Download the report now for exclusive, in-depth insight into the pragmatic side of artificial intelligence that looks beyond the hype at how AI is revolutionising the fashion industry.
New supply chain investigations just one insight into the global workers’ rights crisis in fashion
This week, prosecutors in Milan and the Italian government agency responsible for labour protection – the carabinieri del Comando Tutela Lavoro – are investigating the supply chain of “around a dozen fashion brands”, reports Reuters. This is following a subsidiary of France’s LVMH (Louis Vuitton Moët Hennessy) in Italy was placed under court administration when illegal working conditions were uncovered at four of its suppliers.
This recent probe is the third time in 2024 that the Milan court has tackled corporate failures in supply chain oversight. In April, similar actions were taken against a Giorgio Armani-owned company.
Inspections at Dior’s subsidiaries uncovered that workers were subjected to excessively long hours, with some even sleeping at work to ensure “manpower available 24 hours a day.” This was corroborated by mapped electricity cycles showing continuous energy use day and night, including national holidays. The 34-page ruling also noted that safety devices were removed from machinery to speed up operations; enabling contractors to charge Dior as little as €53 for producing a handbag, which would then go on to retail for €2,600.
At this point, the identities of these brands are being kept confidential. But the appointment of a special commissioner enables the subsidiaries to resolve supply chain issues while maintaining their operations. This may seem unjust, but prosecutors in the ruling note that the issues at the subsidiaries of Armani and Dior are not “sporadic” incidents, but are part of a much wider, systemic issue when it comes to production in Italy.
No doubt, halting operations would be a real wake-up call to the parent companies of these illegally-operating subsidiaries. But with potentially hundreds of subsidiaries across Italy, a complete shutdown could have severe economic repercussions – something the Milanese court likely had to consider. So while Dior and Armani themselves are not under investigation, rather the owners of the subcontracting companies, included was that Dior did not take appropriate measures to check the working conditions of contracting companies, by failing to carry out “effective inspections or audits.” The court wrote that it is “this inertia” that “facilitates the exploitation of workers.” Unfortunately, this is a pattern that has become too familiar in the fashion industry: investigation, scandal exposed, outrage, no change, and the story fades into obsolescence. The brands take a reputation hit that passes fleetingly.
There is some damage being done to over in the UK, however. US Senator Marco Rubio has written to the UK government this week, urging an investigation into whether Shein (the Chinese fast fashion behemoth) has used forced labour in its operations before allowing them to list on the London Stock Exchange. Shein had previously considered listing its shares publicly in New York. Although Shein is currently headquartered in Singapore, it was originally founded in China, where the majority of its supply chain is still located, and human rights groups have consistently accused the company of using ethnic minorities as forced labour in its cotton supply chain in Xinjiang. Shein has denied these allegations, asserting that it has a “zero tolerance policy for forced labour.” Senator Rubio is not alone, as workers rights campaigners have also recently called for the UK’s next government to oppose Shein’s listing. Their argument: it would be “yet another betrayal to working people everywhere and the planet” given the allegations of forced labour, Shein supposedly mandating 75-hour weeks, and the company’s brazen attitude to design appropriation.
And, lamentably, the issue of subpar workers rights is a global one. The International Trade Union Confederation’s (ITUC) latest Global Rights Index has once again highlighted major textile and garment-producing countries among the world’s worst for workers’ rights. These countries include Bangladesh, Belarus, Ecuador, Egypt, Eswatini, Guatemala, Myanmar, the Philippines, Tunisia, and Türkiye. The index notes year-on-year record highs in workers’ rights violations globally, with every region scoring below their 2014 baselines.
Of course, this is beyond concerning, and there is an urgent need for reform, and us here at The Interline try to play our part by bringing as much awareness and attention to these issues as we can. In this case, the takeaway is to remember that brands – from fast fashion to luxury – at all levels should be held accountable and ensure fair working conditions. And particularly when considering purchasing luxury products, it’s crucial to remember that high prices do not automatically guarantee an ethical supply chain.
Iyo One earbuds: can they escape the AI-wearables curse?
Despite announcing two new earbuds and an innovative Bluetooth LE-streaming charging case, Jabra’s parent company GN Audio has announced its exit from the consumer headphone and earbud market. GN mentions that despite the Jabra Elite range being profitable, “the investment required for future innovation and growth in this very competitive space is deemed unjustified in the long-term given associated risks.”
This space includes Apple (who recently announced that it would be bringing Apple Intelligence to products including its AirPods) Samsung, Sony, and countless other earbud brands, including the ones from Google-backed startup Iyo. Iyo is introducing a product that will vie for the title of best earbuds, but the smartest. The Iyo One is another iteration of the wearable, AI-infused personal assistant – a notoriously tricky area that recently saw other attempts like the Humane AI Pin falter. It aims to stand out as a standalone AI device, but unlike other attempts, it’s not a brand-new product category but an upgraded version of the wireless earbud.
The potential here echoes that of the AI Pin and the Rabbit R1, having capabilities like real-time language translation, fitness coaching, and overall life organisation. Its audio enhancements include spatial audio, head tracking, and AI-driven voice enhancement. It even promises all-day battery life. The Iyo One will be available later in the year, but is available for pre-order now, and it will be interesting to see how many they are able to sell – a figure that is likely only to be revealed if the product performs well.
It’s hard to tell where consumers head’s are at when it comes to AI-wearables at this point, because of the pattern of tech companies raising expectations, only to fall short on their product deliveries. This tendency to over-hype innovations has left consumers increasingly sceptical about the lofty promises made around AI products. But at the same time, there is a persistent curiosity about AI products and what they can bring to our lives. Are there enough people willing to pay up to avoid the fear of missing out? With a final price point of $599 and $699 for the Iyo One WIFI 16GB and WIFI + LTE 32GB, respectively, the device might be priced too high for mass appeal. But if the amount eventually does come down, it may well be worth it as these were designed to be a high-quality pair of headphones. Something that sets them apart from Humane’s Pin and the R1, which offer little value outside of their AI functionality. Maybe that’s the secret for AI-wearables: innovate, advance, redesign, but don’t go so far as to make the original concept unrecognisable.
Best from The Interline:
Kicking off this week was Jillian Beyer – Founder of JVBswim – with her first exclusive for The Interline, integrating tradition and technology for sustainable swimwear.
Sanne Schoenmaker shares her practical guide on how to scale made-to-measure.