Repost from LAW À LA MODE, Issue 13 – April 2014
By Giangiacomo Olivi and Stefania Baldazzi (Milan)
DLA Piper’s Fashion, Retail and Design group held another successful event in Milan’s famous Borsa Italiana, discussing legal issues and new trends regarding fashion blogging, e-commerce and wearable technologies.
The event was opened by the University of Milan with a presentation on the e-fashion market in Italy. Although the Italian digital sector is lagging behind (if compared with the overall market), fashion e-commerce is increasing, with a 350 percent growth for mobile e-commerce. The opportunities for further expansion of e-commerce in the fashion sector are quite extraordinary. While fashion e-commerce currently ranks below tourism in terms of sales, there is no reason why it should not be at the top of the list.
The first panel featuring our lawyers from Europe (Ruth Hoy and Carol A. F. Umhoefer), the US (Ann Ford) and Asia (Betty Louie) gave attendees an insight into the legal issues of fashion e-commerce, blogs (and flogs!), wearable technologies and social media, focusing on the main challenges for the fashion industry.
Blogs remain an issue. There is a general awareness that certain bloggers or fashion influencers may be paid to positively review certain products or brands (possibly through their agents), particularly if such influencers have acquired celebrity status. In certain jurisdictions, there are specific sanctions for failing to disclose sponsorship of a blog. In a number of jurisdictions, the general rules for advertising apply (and to a certain extent, “gifts” may be permitted). Regardless of the actual sanctions, transparency is advised so the brand and the blogger will not lose credibility.
There are no “free rider” jurisdictions on e-commerce or wearable technologies. For instance, with the implementation of the data protection and consumers legislations in China, there will likely be a further increase of online shopping confidence (and scrutiny). Various strategies can be devised when entering an emerging market digitally.
Despite some common regulations in Europe, e-commerce rules do differ. Looking at the relevant case law, in certain jurisdictions, after-sales assistance should be specifically addressed: the more often there is a customized after-sale, the lesser the risks.
And then, from theory to practice. A panel of professionals from major fashion brands as well as famous Italian bloggers, including Michele Zamboni (Roberto Cavalli), Gianluca Pastore (Benetton Group), Caterina di Iorgi (Style & Fashion 2.0), Francesco Giartosio (GlassUp), Eleonora Carisi (JouJou Villeroy) and Paola Vee (Les Cahiers Fashion Marketing) discussed their practical experiences.
Connective commerce is a reality. A lot of prominent brands are quickly recouping ground they may have lost. Benetton, for instance, is fully integrating their online and off-line experiences, and their digital investment is above 50 percent of advertising spend. We look forward to seeing the next launch of integrated shops in Milan and new connective applications.
Given the extreme diversity of the players and jurisdictions, any digital strategy cannot be taken lightly. Online brand and technology protection, communication and reputation management remain of paramount importance when devising a digital strategy.