Fox Williams Fashion Law Seminar October 2014

The future of fashion Staying ahead of the trend

12 October 2015

© Fox Williams LLP

Welcome Jonathan Coates, RBS/NatWest

Introduction to Fox Williams

Stephen Sidkin, Fox Williams LLP

Fashion Law seminar 2015

www.fashionlaw.co.uk

The Future of Fashion

James Pow, Country Attire

On-line retail - A single view of the future?

On-Line Retail – A single view of the Future

� Attracting attention in a world of distractions � Putting Perspective on the retail change � Competitive advantage � Using data � The digital future

On-Line Retail – A single view of the Future

� Not a single view of the future, but it will demand a singular experience.

� Social behaviour and technological change. � Bricks and Mortar or Online.

� The winners of tomorrow already accept that recognition of change within consumers is the priority in making such decisions.

� “seamless customer journey”. � Providing a truly singular experience at all omni-channel

points of contact for the consumer of today.

Attracting Attention in a world of distractions

Understanding delivery in the digital age � With so many messages demanding our time, how

does a company stand out? � The answer is simple – fade out.

� Short Seamless experiences will become core in the consumer journeys of smart retailers.

� It will harness the personalised data or geo-location, choice and payments.

Showrooming and Webrooming � How can they create a holistic shopping experience

which moves seamlessly between the on and offline worlds?

� Webrooming is the new showrooming.

� Beacons both physical and virtual.


Consumers are in control of the Ecommerce landscape

� Switched-on retailers operating across these platforms recognise the four priorities that need to be given focus and harnessed:

� Understanding the customer � Organisational culture and change, and � Technology integration – post � Understanding the technology

� Every customer is on a unique journey. Motivations – to try, buy or remain loyal

change depending on the individual making the choice. The customer has the control – but retailers have the power to influence.

� Retailers that want to meet the demands of today’s connected consumers must

understand their evolving shopping and buying behaviours.


Putting perspective on the retail change

Competitive Landscape

� “Thinking global and acting local”. � Global stock files are a prerequisite to success. � Localised geographic intelligent delivery and return systems

essential. � Timeline to consumer delivery expectation globally and returns a

prerequisite. � Cultural geo-location marketing essential. � And more importantly recognising retail ecommerce sales worldwide,

by country.

Retail Ecommerce Sales Worldwide, by Country, 2014-2019. *Excludes Hong Kong; ** Forecast from June 2015; *** Forecast from May 2015 Source eMarketer, July 2015


Billions 2014 2015 2016 2017 2018 2019

China * $472.91 $672.01 $911.25 $1,208.31 $1,568.39 $1,973.04

US** $305.65 $349.06 $394.43 $442.55 $493.89 $548.22

UK*** $86.81 $99.39 $110.32 $121.36 $132.28 $143.19

Japan $78.55 $89.55 $100.30 $111.33 $122.46 $134.10

Germany $55.21 $61.84 $68.95 $76.47 $82.58 $87.54

France $38.34 $42.60 $46.10 $49.68 $53.23 $56.69

South Korea $35.01 $38.86 $42.75 $46.59 $50.55 $54.14

Do not underestimate the China effect

� Retail ecommerce sales are projected to continue growing in strong double digits, only dipping under 30% in 2018.

� China’s retail ecommerce sales value will exceed US$1.5 trillion by then,

more than three times the value of comparable ecommerce in the US. � Mobile will account for almost half of retail ecommerce sales in China

this year. That compares to 22% in the US and 33% in the UK and less than 20% in other developed nations.

� Tmall represents 62% of retail ecommerce sales share in China

compared to Amazon.cn at 1.3%.


Competitive Advantage

This will be defined as the relative speed and ability of companies to change.

� 77% of new software projects took six months+ to implement. � 58% of companies use the ecommerce team to change content. � 53% of data-based improvements are implemented by IT only

when they have time. � 56% of businesses are giving up control over the customer

experience to algorithm based solutions. � 49% of marketing and ecommerce teams share data efficiently to

improve website performance. � 21% use the IT department to change website content, despite IT

being ranked least proficient at it.

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Having the “bandwidth” within a business to recognise and prioritise the change � Integration is key. � A new generation of leaders are emerging, one that understands the

possibilities created by this kind of optimisation process. � They can then leverage the business advantage afforded by the new

level of adapability, whilst not losing focus due to the sheer volume of options available.

Competitive Advantage

Using Data

Fertilising insights to adapting customer journeys � Arriving at a single customer view � Understanding the contribution of different activities � The “architect” within the business � Some switched-on retailers understand � Ideally, data is collected simultaneously � Leading retailers understand

Time is money - Speed is king. � Speed decisions will become a differentiator of those leading from

those that will lose.

� As ever it will be the survival of the strategic and quickest. � Leverage Trust � Be relevant � And, customers trust other customers.

Using Data

� The primary device used by digital buyers in rural China to make digital purchases in

2015 – the smartphone – 64%. Overtaking desktop/laptop at 33% and tablet at 3%. � Unlike markets such as the US where ecommerce activity is common across all age

groups, China’s digital buyer activity is skewed heavily to young adults aged 14-34. � The key difference between China and elsewhere is that the first device used for

ecommerce purchases in mainland China is mobile. � Why ?

� Key factors when choosing which ecommerce sites to visit according to digital buyers

in China, in descending priority:

1. Quality of goods sold – real? 2. Price of goods sold 3. Website account safety 4. Website reputation and merchant credit 5. Payment methods offered by site 6. Goods return and exchange service 7. Goods delivery service

Mobile Driving change

The Digital Future

� Complete personalisation and singular customer experience � The first drones making deliveries

� Human interface

Shaming and ‘naming’ Avoiding the pitfalls and taking advantage

of social marketing

Nigel Miller, Fox Williams LLP


Challenger Brands / influencers


"I appreciate that this is probably horrendously politically incorrect but that is a stunning picture!!!!”

The lawyer and the lawyer …


“Scumbag Tim Bussey, pays for false reviews, lose 80% of his cases”

The lawyer and the troll …


'Chav cheap trash': Bride-to-be left outraged over restaurant's response to online review


And now the ‘interesting’ bit, the law …

� Consumer Protection from Unfair Trading Regulations 2008 (“CPRs”)

� Committee of Advertising Practice Code (“CAP Code”) � August 2015 Guidance from CAP Executive for

v’loggers and brands � Consumer Rights Act 2015 � Defamation / trade libel / malicious falsehood � Norwich Pharmacal disclosure order / service by

social media


Top Ten Tips

� Be impulsive � Be argumentative / cover

up � Astroturf � Take legal proceedings (if

possible) � Mess with lawyers

� Monitor online channels � Check your T&Cs � Consider take-down

options � Guidance and training for

employees � Develop S-commerce

Don’ts Do’s


The in-store experience to 2020! Simon Carter, Owner of Simon Carter menswear

Are we being served

Brave New World

Holiday pay: are you getting it right for staff on commission

Audrey Williams, Fox Williams LLP


The Principles

� Health & Safety Provision

� “Euro right” – four weeks’ paid annual leave entitlement (Reg. 13 WTR 1998)

� “UK right” – 1.6 weeks’ paid annual leave entitlement (Reg. 13A WTR 1998).

� Normal Pay must be maintained

� Workers should not be deterred from taking leave

� Cannot roll up holiday pay

� Must be paid at the time leave is taken


Issues for the Fashion Sector

� How to calculate?

� A week’s pay based on the norm � Normal week’s pay reflects normal working hours ;

what about where pay varies with amount of work done/output/results ?

� Fluctuations in hours and pay e.g. overtime and commission


The Bad News

� At what rate of pay?

� If remuneration varies with amount of work done – calculate by reference to “typical pay”

� 12 weeks in the statute but risk of challenge if not “typical”

� Seasonal nature of work - 12 months’ average may be more typical?


The Good News

� Limits on liability – 2 years’ back pay Deduction from Wages (Limitation) Regulations 2014

� Only applicable to the 4 weeks’ Euro leave – but

admin issue � Gaps of 3 months may break series of deductions to

further limit the 2 years � Unions, Government (and employees) being

pragmatic www.fashionlaw.co.uk

The international fashion story

Dermott Rowan, Orla Kiely

Covent Garden store Covent Garden store

New York store

Tokyo store

Press Press

• A clear and concise campaign

illustrating which demographic the product is geared towards

• Choosing the right spokespersons

to represent the brand • Key figures play influential roles in

increasing demand • Alexa Chung is a big player in

captivating the Asian market • Global icon, The Duchess of

Cambridge fits the ideal Orla Kiely demographic

• Hollywood stars, Kiera Knightly and

Kirsten Dunst bring in the American market

Celebrity fans

Any Questions?

Our team

Jonathan Coates Relationship Director RBS/Natwest +44 (0)20 7432 4122 [email protected]

Steve Sidkin Partner and Chair of the Fashion Law Group +44 (0)20 7614 2505 [email protected]

James Pow Executive Chair Country Attire [email protected]

Nigel Miller Partner +44 (0) 20 7614 2504 [email protected]

Simon Carter Owner of Simon Carter menswear +44 (0)20 683 4475 [email protected]

Audrey Williams Partner +44 (0)20 7614 2656 [email protected]

Dermott Rowan Managing Director and Co-Owner, Orla Kiely + 44 (0)20 7819 0141 [email protected]

Fox Williams Fashion Law Seminar October 2014

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Transcript of Fox Williams Fashion Law Seminar October 2014