There's a New Retail Sheriff in Town

As the days get colder, the nights get longer and our cravings for hot chocolate with Baileys and whipped cream heighten, so does our need to find a good book.  Thanks to a recent event hosted by Fashion Group International’s Toronto chapter, CanadaFashionLaw need look no further.

This week, CanadaFashionLaw eagerly attended a presentation by Robin Lewis, hosted by FGI-Toronto.  Robin Lewis, author of the book “The New Rules of Retail”, is a retail consultant and former vice-president and executive editor of Women’s Wear Daily.  In “The New Rules of Retail”, Robin looks at the transformation of retail and what it means to the fashion and consumer products industries. 

This book is a must-read if you are:

• in the fashion industry,
• involved in the consumer products chain,
• are a marketing professional or
• just want to be an informed consumer.

In his presentation, Lewis provides an oversight of his theories.  In a nutshell, the shift to consumer power, coupled with rampant globalization and significant technological developments have been retail game changers.  According to Lewis, there has been a 3-part evolution in retail.  At first, the producers called the shots.  Retail outlets were few and far between and mostly centered in urban areas.  With the shift to urbanization, the producer’s power diminished.  This period was marked by an increase in malls, specialized retail outlets and big box stores.  As media became an ever-increasing force, the onus shifted to retailers to create demand for products.  In the current stage, globalization and technological advances have taken the retail market to a whole new level.  Effective mass global manufacturing and distribution networks have created an unprecedented surge in supply, thanks to the proliferation of retail outlets or e-commerce websites.

We live in a globalized, mass marketed, consumer hungry society. 

We know that. 

But what does this mean for the business of retail?  

Consumer value has shifted, going beyond the desire of quality and fair pricing.  Consumers want experiences – they want to emotionally connect to their retailer.  Lewis even went so far as to discuss the consumer’s neurological connection being tied to their retail experience. Customization is key; conformity is out.  Democratization of trends is in; exclusivity is out. Community is utmost.  Sustainability is a way of business and no longer a marketing tool. Survival of the fittest is not sufficient.  Retailers must excel in every aspect.  

CanadaFashionLaw urges you to run as fast as your stiletto-clad, pedicured feet will go to pick up a copy of Robin Lewis’ “The New Rules of Retail”.  

Silently in the Night…Canada Gets its ACTA Together

Did you know that this past week Canada become a signatory to the international treaty the Anti-Counterfeiting Trade Agreement (or “ACTA”, if you want to flex your legal prowess)?  Chances are you don’t and you’re not alone, but CanadaFashionLaw does and is eager to share!  Sharing is caring, after all!

What is the Anti-Counterfeiting Trade Agreement?

The Anti-Counterfeiting Trade Agreement is an international treaty that was cooked up by Japan and the US in 2006 in a joint effort to combat counterfeit products on a global scale.  In 2007, Canada joined the negotiations but did not become a signatory until very recently.  

ACTA attempts to create international standards to facilitate a cohesive global attack on counterfeiting between countries. 

Why Do We Need a Global Agreement for Counterfeiting?

Perturbed that you may not be able to get your designer purse for a fraction of the cost?  Too bad, so sad!  Counterfeiting is a serious issue that needs to be addressed.  CanadaFashionLaw previously tackled the great ramifications of counterfeiting to Canada (click here to hone up on this issue). 

Canada’s Foreign Affairs and International Trade department endorsed the necessity of bolstering Canadian intellectual property laws:

“The emphasis on innovation as a measure of global competitiveness as well as the growth in participation of the Canadian economy in global trade have made the international dimension of intellectual property policy increasingly important.”

Why All the Secrecy?

Some of the countries that participated in the negotiations (cue fake cough “US”) classified the negotiations as secret.  Thus, although the Canadian government has been involved in the negotiations for a number of years, the Canadian public was not allowed access to any of the information.  There was essentially no information available on Canada’s position on ACTA.  At one point, a well-reputed Canadian intellectual property law professor submitted an access to information request to the Canadian government.  Rumour has it that in response to the request, the Canadian government only confirmed the name of the act.  Of course, this type of secrecy does not sit well with many stakeholders.    

What Does ACTA Entail?

ACTA can be broken down to a 3 prong plan of attack:

1. Improving international cooperation between countries;
2. Establishing best practices for enforcement;
3. Architecting a more effective legal framework for enforcement.

An interesting aspect of ACTA, which will directly benefit Canada, is the focus on border controls.  Going back to CanadaFashionLaw’s previous article dealing with the issue of counterfeiting, Canada’s ability to enable borders patrol to actively participate in the war against counterfeiting is critical.  It is critical in controlling the import of counterfeit products into Canada and it is also critical in ensuring that Canada is a player in the international trade market.

Who RSVP’d to the Party?

So far, Australia, Japan, Mexico, Morocco, New Zealand, Korea, Singapore and the US have endorsed ACTA, along with Canada. 

So What Next?

Probably, we wait.  Ratification of legislation is one thing, implementation is another.    

Taking on the World...Taking Your Brand Global.

After attending a fabulous intellectual property law conference in Chicago last week, I started thinking about Canadian designers who are looking beyond our borders for success.  What information can CanadaFashionLaw bring to these designers?  Today, we’re thinking global! 

In the fashion world, it’s a global world.  Surprisingly, the luxury goods market has been buoyed despite the crumbling economic climate in Europe and North America, thanks to the increasing middle class’ purchasing power in emerging markets such as India and China.  Perhaps if you think global you’ll (hopefully) benefit from the different economic climates throughout the global economy. 

But taking your brand globally can be expensive.  The maze of distributors, suppliers, real estate, tax planners etc. expands.  And so do their fees!  Unfortunately, law is no different.  From a brand protection standpoint, intellectual property protection is granted on a country-by-country basis.  (Obtaining trade-mark protection in Europe is slightly different and can be obtained on a regional basis).  Once your fashion line goes global, the Canadian trade-mark registration that you diligently obtained will only protect you in Canada.  Not in the US, not in Europe, not in Japan.  I think you get the point.  But if you’re operating in these countries, you should contemplate seeking trade-mark protection in each of those countries.  Yes it’s cumbersome, complicated and cher, but it is necessary to ensure that your company’s brand, which is the major (if not, most important) asset, is protected.

Think strategically. 

Think sensibly. 

Be budget conscious.  

Do your research! 

Does the market justify launching in that country? 

Is there long-term growth potential in that country? 

Has there been positive response to your clothing line? 

Where there is potential for market presence in a country, adopting a legal brand protection strategy in that country makes sense.  

Now, these are all factors to consider when taking proactive steps to protect your brand.  

What happens when you have a global brand and “it” hits the fan? 

Do you come out like a well-dressed John Wayne ready to sheriff your brand on a global scale? Likely not.  Litigation is not cheap!  A custom-made fur jacket lined with raw silk is likely a bargain compared to the cost of global litigation!  (I do not have or condone wearing a fur jacket and no animal was harmed in the writing of this article). 

One of the seminars at the Chicago conference looked at managing multi-jurisdictional litigation.  Universally, the speakers agreed: the cost of litigating in every country that a company has a market presence is not a smart business decision.  Take, for example, the Christian Louboutin v. Yves Saint Laurent case.  Both companies are global brands, yet the case is based in the US.  Why? 

Behind every legal action taken by a company, there is a business rationale. 

• What are the budgetary constraints of the company? 
• How much does litigation cost in a country?  
• Which country is a symbolic power-house?  
• Which country does the brand have the strongest market presence?  
• Administratively, which country’s legal system has the quickest turnaround for the judge to render the final decision? 
•  Which countries have the strongest enforcement or damages awards?

Think business.  Think budget.  Think global.  Think long term.  

Swimming Against The Tide: Wisdom from Canadian Swimwear Designer, Reyhan Sofraci

CanadaFashionLaw has a passion for fashion and for laws that assist the fashion industry.  We'll take any opportunity to learn more about the fashion industry.  From attending industry events to understanding the challenges the designers face to looking at the less-sexy legislation, regulatory regimes and case law that affect the fashion industry, CanadaFashionLaw aims to get a full understanding of the fashion industry.  In this article, we learn from Montreal-based swimwear designer Reyhan Sofraci, owner of the swimwear lines Aqua di Lara and Qiss Qiss.

CanadaFashionLaw first became acquainted with Reyhan through an interview she conducted with the television show In Fashion a few years ago.  Feeling the U of T alumni connection and impressed with Reyhan's hootz-pah to launch a swimwear collection without any formal fashion design training, CanadaFashionLaw has been watching Ms. Sofraci go from success to success. 

In this interview, we get Reyhan's take on getting past the development stages in the fashion industry to becoming a noteworthy contestant in the niche luxury swimwear industry.  Enjoy!

You were recently featured in Miami’s Fashion Week.  How did it go?  What was the inspiration behind this season? 

The inspirations this season were:

Quartz - marble and natural influences

Farrah - 70’s inspired prints and silhouettes

Ecdysis - Snake prints

Golden Lights - Gold accent weaved and net prints

It went very well.  this was our third season presenting and it was a blast as usual.

You have two swim wear lines: Qiss Qiss and Aqua di Lara.  Why?  How are the different?  Does your merchandising and marketing strategy change for each line?

Aqua Di Lara is a trend-forward line catering to an older audience between the ages of 18 and 35 who appreciates originality and style and function.  We market this to more independent woman who possess a strong dominating personality and who are financially secure.  The items are made in limited quantities in order to ensure that the customer feels special.

Qiss Qiss is our junior line that caters to girls between 14-25 and is fun, flirty and sexy.  It is more on trend and changes every season to suit what girls who love fashion seek in the market.  It's trendy with a twist.  We market Qiss Qiss at various events catered to the high school and freshman university crowd.  Bikinis dominate the collection and its all about eclectic fashion.

Is the swimwear market a niche market that requires special skills to navigate through – or do the same principles apply throughout the fashion industry?

Swimwear is extremely seasonal. 

You have one presentation per year versus the 3-4 that clothing companies provide.  If people don’t like your collection in a year, you have to basically wait until the next one to get their attention again. So it is a yearly cycle versus the monthly that most clothing companies face and can be extremely challenging.

There are also similar expectations that have extended into the swimwear market in respect to style. People are seeking more coordinating looks and strive to achieve the complete ensemble.  Many swimwear manufacturers including us are now offering items to better merchandise your look. Runway fashion is definitely becoming more desired and acceptable on the beach and in the pool scene.

When you were an emerging designer and business owner, what were the significant or most surprising challenges you faced?  How did you overcome them?

People copying our designs was a huge one. 

The worst was it was big companies that took advantage of our designs and promoted them as if it was their own.  I find this the hardest as they have a huge network and blast the item everywhere and people associate the look with them when it was clearly yours from the start.  Lacking the funds to do anything is always discouraging.. I guess there is flattery in being copied..but unfortunately it is also followed with a financial loss, as well as loss of recognition.   I am very sensitive to this matter and always try to ensure our designs are as new as possible.  If anything slipped through the cracks I would always do my best to ensure that credit is given where it is due.

Now as an established designer and business owner, what are your challenges?

The web - it can be extremely beneficial in some respects and a huge detriment in others.  

We present our collections in July and items are not in stores for months later.  Bigger commercial companies see the suits and prints online the very next morning, sometimes even instantly.  With their weekly turn around time, they copy them and the suits are out in stores at a fraction of your prices.  So by the time you get your items to the shelves, they seem old to the eyes of the consumer. 

What kind of financial, business or support resources/services were/are available to you either through the government or the fashion industry?  How did they help you?

The most helpful was Promode and the Career Focus Program. These two are fantastic ways that the government offers support.  One thing is important to note though, there are a lot of support programs when you first start and have not yet done anything and then again once you achieve a hefty amount of sales.  There are no services provided to the most challenging parts in between these times.  So you have to be strategic on when to apply for help.

You have been featured at Montreal, Toronto and Miami fashion week.  How fundamental have these shows been in establishing your company?  In what way?

They are important for branding. They are also somewhat of a bikini bible for media to gauge what trends are coming up for the next season as well as a good guide for pulls for photoshoots.

Your swimsuits were featured in marketing campaigns for the Next Top Model franchise – how did this happen?  How has this exposure helped your company?

It was a great opportunity to be featured in both Canada’s and America’s Next Top Model.  When featured in anything, it is very important to do your own PR and send out your own press releases.  It does not say anywhere that those suits belong to us so it is important for the company to ensure the public is aware of where those suits came from.  Exposures like this help a lot as they put your name out into the public eye.  The most flattering part is that they have so many items to choose from and if they picked yours at the end, it must be because they felt it was something special.

As your business grows, are you focusing on the Canadian market or looking abroad?   Why?

The US and the Canadian market are the areas in which we would really wish to keep expanding.  The US market is huge and most areas have a warmer climate so that helps swim sales.  Also Australia and Europe are areas we are selling in and wish to acquire more market presence.  Australia has opposite seasons and Europe, well its Europe!  Definitely a great market to be in.

What has surprised you the most about your journey to success?

How much time, money and energy one must invest when they start as a nobody.  I had no fashion background and did not know anyone in this industry.  It takes a lot of time to meet great people and I am blessed that I had the pleasure to do so.  Support from your loved ones keeps you going; mental and emotional support is key.

Your official title at your company is “Creative Director”.  In developing your business, did you always just focus on the creative aspects, or were you involved in the business side of developing the business.  At what point were you able/or feel comfortable solely focusing on the creative side?

In all honesty, I still take care of the business side too.  I always loved the arts and the maths and sciences so I thrive on focusing on these different aspects of the business.  If I had a choice however Marketing and Design would be my fortes.

From creating to manufacturing to marketing and, finally, sales – what has been the most interesting aspect of the business and why?  Which has been the most challenging?

It is the same cycle every year.  The funny thing is with designer brands like ours at times when we attempt to sell, some of our suits are not picked up by stores as they fear it is too different and are concerned that they will not be able to sell it.  The irony is that these suits get featured in many publications months later or become the trend for the following year and the consumers are breaking down doors trying to find them... and well, that is when the stores come back to us with phone lines ringing off the hook and they say I’ll take that one!

What advice would you give the emerging designer?

Be realistic. 

Follow your dream but always be aware that if you opt to start a business of your own you need to be prepared.  Either partner up with someone who is business minded so you can focus on your strengths and passions or educate yourself to be able to do it on your own. 

Life is full of challenges, and a business has those challenges ten-fold. 

Where can we find your product lines

You can buy our brands at many swimwear boutiques in your neighbourhood or can go online and purchase them at some online retailers.

 

Hate Will Cost You

As New York’s swells with the fashionable due to New York Fashion Week, the dark side of fashion is also getting some media attention.  You may recall in the beginning of this year, famed fashion designer John Galliano caught the world’s attention with his erratic outburst one evening in Paris when he hurled racist insults at a couple at a restaurant.  A legal and public relations minefield erupted soon after.  CanadaFashionLaw provided a run-down of the event previously.  Well, the hammer has officially come down on Galliano. 

Galliano was charged with “public insults based on origin, religious affiliation, race or ethnicity”.

A court in Paris has ordered Galliano to pay a fine of 6,000 Euros for his rant, a nominal payment to each victim and to 5 anti-racist organizations, and also the plaintiffs’ legal costs. 

The prosecutor did not seek jail time for Galliano, despite the offence carrying a 6 month maximum term of imprisonment. 

Without a doubt, the biggest cost has been to Galliano’s career.  Galliano was almost immediately released from his position at Christian Dior and also from his own namesake label.  Only time will tell whether he can bounce back from this embarrassment.