Business and Legal Tips for the Emerging Designer

Just this past Friday, I got the magnificent opportunity to sit on a fashion law panel, hosted by the Fashion Law Society at John Marshall Law School in Chicago.  It was a great event, and now the 3rd time I've presented at one of their Symposiums.  Always a great time.

As I, and the 3 other attorneys on the panel took questions, we were asked everything from the best way to set up a fashion business, to the means for protecting a brand once it's up and running.  We gave many tips and cautions, but it reminded me of the information right here to share with designers and brand managers for protecting what's rightfully yours.  

Here are some of the tips we've shared in the past.  Take a look, and let us know what else you'd like to see.  

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Essential Tips from Lawyer to Fashion Designer

Fashion Law & Why You Should Care

Internet Vigilance

Fashion Law & the Local Economy

How to Spot Fake Merchandise

What's In A Name?  More About Trademarks

Labor Issues for Models

5 Truths About Infringement

5 Legal Issues for Fashion Shows

What's Happening With Handbags?!

Over the last 2 years, the handbag market has seen its share of struggles.  Brands like Coach and Michael Kors have opened new store after new store, more outlet shops, and even lowered some of their prices.  This sounds good.  Having the numbers to grow your brick and mortar presence is always a good thing.  Or is it?

Alone, growing in brick and mortar is good, but the handbag market suffered a bit last year, growing just around 2%.  Sure, that's hard to see as a struggle in a $9.3billion industry, but best believe, the brands are feeling it.  Some of the reason for the shift is discounting and brand saturation.  Other contributors are the trends toward specialty bags--whether it be a collaboration between Kerry Washington and Aquatalia, or a cause-focused bag focused on an important social issue.  Consumers are increasingly enjoying putting their money behind a cause, and getting style as an added bonus.  



It's hard to think handbags would go out of style.  It really is quite unlikely.  But, like everything else, there are industry ups and downs.  With the rise in e-commerce, retail is experiencing a shift away from traditional shopping.  Marketplaces like Amazon and Etsy are providing challenging circumstances for shopping mall staples like Macy's, Wet Seal, and The Limited.  Now they've had some real struggles!  

Surely in readjusting their prices, and being conscious about bag placement, luxury designers will rebound from this slump they've seen recently.  The question is, how will e-commerce and the "app age" play into their future success?  Marketing gurus certainly have a challenge on their hands.  Retail execs, too.

B.A.F.F.L.E.D. Fashion Law

Designers Focus In On Internet Vigilance--

Many established designers were hesitant to embrace the virtual world.  After all, their namesake founders began the collections in small shops or even rooms in their homes.  Soon enough, the internet world caught on, and the ease of shopping made for big benefits to seasoned luxury retailers.  

Then came the negatives.

Despite the plethora of advantages to e-commerce, burdens and disadvantages come along as well.  While luxury brands bring customer experience to the fingertips, so too, do counterfeiters and gray market producers.  As we've discussed here many times, gray market goods are those produced in legitimate luxury factory settings, but outside of legitimate production terms.  Counterfeiters usually take it a step further, producing their own look-alike items.  These goods are generally 2's and 3's in the marketplace.  Remember the Rating System?  

Why Does This Really Matter?  Everyone is Making Money?

With so many online squatters, luxury brands are forced to keep up constant vigilance over their brands online.  This becomes extremely difficult when the internet is flooded with search terms, improper image use, licensing breaches, and sites changing every single day. But, who cares?  The reputable brands get money from their base, and the counterfeit market gets money from their, wholly separate base, right?  Nope. 

We've discussed the great downside of counterfeits--the funding they provide for human trafficking and other horrible crimes.  There is a damage to the designer, too (not eclipsing the trafficking, of course--just separate).  

The crime to the brand--whether luxury founded in the 1800s or worked on tirelessly in a university studio this year-- hurts the bottom line.  It hurts more, the name; the reputation. The problem here is the compromise to one's rights, image to the public, and invitation for confusion when consumers are looking for the right item to suit them.  

Designers must be forever cautious of how they market their brand and where they allow it to be exploited. Just recently, Gucci owner Kering sued China's largest e-commerce brand over harboring fakes on the site.  Nearly $82billion is lost annually to designers' fight against fakes. Many designers are putting millions into this vigilance--millions away from the design shop and brand promotion.  Although the money is a major factor, let us not forget the disregard for brand reputation, too.  It's so similar to one's personal reputation.  Guard it with your life.