I don’t think it would reduce manufacturing cost because it is a fashion item and probably only a few-ish were made. It is much easier to make any garment the “traditional way” b/c patterns and processes are already set up, it is more mindless for the sewers. They also have to do a very tiny stitch along the edge to keep the fabric from fraying tooo much, it is a lot of work to look so undone.
Like I said under the photo, I love when you mess with a classic in a subtle way.
“Lazer cut” raw edged outerwear was all the rage in the late 1990′s and as late as 2000. I recall that Donna Karan did an exemplary example of a lazer cut trench in treated cotton about that time. The edges gradually frayed with wear. It was a terrific coat.