Luxury and fashion—USA—Q&A guide

The following IP practice note provides comprehensive and up to date legal information covering:

  • Luxury and fashion—USA—Q&A guide
  • 1. What is the current state of the luxury fashion market in your jurisdiction?
  • 2. What legal framework governs the development, manufacture and supply chain for fashion goods? What are the usual contractual arrangements for these relationships?
  • 3. What legal framework governs distribution and agency agreements for fashion goods?
  • 4. What are the most commonly used distribution and agency structures for fashion goods, and what contractual terms and provisions usually apply?
  • 5. Do any special import and export rules and restrictions apply to fashion goods?
  • 6. What are the requirements and disclosure obligations in relation to corporate social responsibility and sustainability for fashion and luxury brands in your jurisdiction? What due diligence in this regard is advised or required?
  • 7. What occupational health and safety laws should fashion companies be aware of across their supply chains?
  • 8. What legal framework governs the launch of an online fashion marketplace or store?
  • 9. How does e-commerce implicate retailers’ sourcing and distribution arrangements (or other contractual arrangements) in your jurisdiction?
  • More...

Luxury and fashion—USA—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to luxury and fashion in USA published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: Hogan Lovells—Kelly Tubman Hardy; Meryl Rosen Bernstein; Chandri Navarro; Anna Kurian Shaw ; Timothy Tobin; Steven Steinborn; Phoebe Wilkinson; Lauren Battaglia ; Michael DeLarco; Daniel Petrokas; Aleksandar Dukic; Margaret (Maggie) Pennisi; Brendan Quinn

1. What is the current state of the luxury fashion market in your jurisdiction?

The luxury fashion market in the United States was rocked by the covid-19 pandemic in 2020, with the shutdowns and the cessation of global tourism changing what and how luxury customers purchase. Tariffs and a strong dollar had already begun to present challenges for the US luxury market in 2019, as Chinese consumers began buying closer to home. But in early 2020 global tourism ceased, airport shops – a major driver of luxury sale globally – were empty, and cities shut down. The effects on luxury sales were immediate and catastrophic, with even the strongest brands experiencing revenue decreases of 40 per cent and more in the second quarter. However, as the year progressed, there were bright spots. Online sales took off, the strongest brands pushed through significant price increases while simultaneously negotiating rent decreases, and perhaps most surprisingly, sales to local consumers increased,

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