5 reasons you're paying for the logo, not the leather
Luxury bags are sold at 20x mark-ups. What a Milan court found behind the "Made in Italy" label is even worse.
By Lil, founder of Kit Atelier
You know the moment. A leather bag in a shop window: the shape is perfect, the leather looks rich, and when you pick it up it just feels right. Then you see the price, and your heart sinks a little.
So you tell yourself it's an investment. It'll last for years. It's worth it.
But a big part of that price isn't the leather at all. It's the logo.
The price has very little to do with the cost of making it
In 2024, a Milan court looked closely at how Dior's bags were being made. It found Dior paid a supplier just €53 to assemble a bag that sold for €2,600. That's about 2% of the price on the tag.
Armani's numbers were similar. A workshop was paid €93 to make a bag, the supplier sold it to Armani for €250, and it reached the shelf at around €1,800.
What the court found · Milan, 2024
Paid to the supplier to assemble it, and the price in store.
Paid to the workshop, charged to Armani, and the price in store.
Sources: Bloomberg via Fortune, 11 June 2024; Law Society Journal, 26 August 2025
See how you can get genuine leather without the designer markup →
"Made in Italy" was hiding worker exploitation
The bags were made in Chinese-owned workshops on the outskirts of Milan, hired by the brands' own suppliers. Investigators reported migrant workers, some undocumented, paid as little as €2 to €3 an hour.
People slept in the workshop so production could run around the clock. Safety devices had been removed from machines to speed things up, and hygiene was below legal standards.
Every one of those bags still left with a "Made in Italy" label.
What investigators reported
- €2 to €3 an hourPay reported for some workers
- Sleeping in the workshopSo production could run day and night
- Safety devices removedTaken off machines to work faster
Sources: The Wall Street Journal, 3 July 2024; Bloomberg via Fortune, 11 June 2024
You're paying the rent on the world's most expensive streets
Flagship stores on the priciest retail strips in Paris, Milan and New York. Global ad campaigns. Celebrity faces. All of it is built into the price tag, and none of it makes the bag on your shoulder any better.
Make the bag yourself, and skip the logo
A Kit Atelier kit gives you genuine leather, pre-cut and ready to hand-stitch, with a video that shows you every step. No experience needed.
Start with the Grace satchelFree delivery Australia-wide · 100-day guarantee, even if you've started
The leather is the same. Only the label changes
Designer brands don't own a secret source of leather. The same grade of hides and the same quality of hardware are available without a famous name stitched on.
What makes a bag last is real leather, solid hardware and careful stitching. Everything else is the story wrapped around it.
You can skip the logo altogether and make it yourself
That's why more and more Aussies are turning to Kit Atelier. We're an Australian-founded brand that makes leathercraft something anyone can do. Our designs are classic, timeless shapes made to be worn for years, without the designer price tag.
What's in the box
Genuine cowhide leather, pre-cut and pre-punched so every stitch hole lines up. All the hardware. Needles, thread, glue and the tools you need. And a step-by-step video tutorial made for complete beginners. If you get stuck, a real person replies within 24 hours.
How it works
- Choose your design. Pick your bag and colour, and we deliver the complete kit to your door.
- Follow the video. Stitch along at your own pace. No experience needed, and no sewing machine.
- Make it and wear it. Most beginners finish in 3 to 6 hours, over a weekend or a few evenings.
You pay for the materials, and you walk away with a bag that has your own stitches in it, personal, well made and built to last.
Start with one. For the price of a single designer bag, you could make a whole collection of timeless pieces, a satchel for work, a tote for weekends, a clutch for evenings, all built to last.
No logo markup. Just genuine leather and a few hours of pure hands-on escape, the kind where you find your flow, get out of your head and back in touch with your hands.
You're covered by our 100-Day "I Made It" Guarantee. Start your kit. If you get stuck, we'll help you finish. If you still don't love it, send it back within 100 days for a full refund, even if you've started stitching.
This is for you if…
- You love the designer look but can't justify the price tag
- You're tired of fast fashion and buying things that don't last
- You've never made a bag before and want a beginner-proof place to start
- You love the idea of building a collection of timeless bags you'll cherish for years to come
- You want to answer "Where did you get that bag?" with "I made it"
Why 5,000 Aussies love our kits
First time maker
★★★★★
"I absolutely love my bag! I was able to put it together in one evening, and the video tutorial made it so easy to follow. It turned out even better than I expected and I'm so happy with it. I've already bought my second kit!"
Miriam M · Grace satchel
The quality
★★★★★
"I love the quality of the tote and it was really easy to put together. Such a fun and rewarding little DIY project. I enjoyed making it so much that I’m already planning to order another one!"
Elena M · Daphne tote
Made together
★★★★★
"I bought this as an activity to do with my daughter. She is 13, and loved making the bag. The straps are adjustable so the size is perfect for now and as she gets older."
Dina Martin · Madeline shoulder bag
Why Kit Atelier?
- Kits are half price right now
- Free delivery Australia-wide
- Dispatched within 1 business day
- 100-day "I Made It" Guarantee, a full refund even if you've started stitching
Our best-selling beginner leather kits
Or make all fourThe Complete CapsuleMore colours availableShop Now
Figures are as reported from Milan court documents in 2024. The €150 figure is an industry estimate that adds leather and hardware to the €53 assembly cost. The court placed units of Dior and Armani under temporary court administration over supplier oversight; the brands themselves were not charged. Kit Atelier is not affiliated with any brand named on this page.