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Fashion industry executives point to forced labor, an uncertain economy, shipping and supply chain disruptions, and rising geopolitical tensions as among their key concerns this year, according to a new survey. They also cite the growing costs that stem from – and concerns about compliance with – the rise in sustainability-centric regulations in the European Union and beyond, with no shortage of respondents revealing that their companies are devoting greater resources to “sustainability and social compliance” related efforts.

In furtherance of its eleventh annual “Fashion Industry Benchmarking Study,” the U.S. Fashion Industry Association (“USFIA”) sought to gauge the business outlook, sourcing practices, and trade policy views of fashion industry executives. After surveying executives from 30 leading U.S. fashion brands, retailers, importers, and wholesalers between April and June of this year, the USFIA identified the top five business challenges facing companies in the fashion segment in 2024 as: (1) inflation and economic outlook in the United States; (2) managing the forced labor risks in the supply chain; (3) shipping delays and supply chain disruptions; (4) managing geopolitics and other political instability related to sourcing; and (5) the protectionist trade policy agenda in the U.S.

– Julie Zerbo
Founder & Editor-in-Chief

Here are TFL’s top articles of the week …

1. Wearables Highlight New Legal Frontiers as Tech, Fashion Overlap. Wearable tech options are increasingly being released and seeing improvements, and this developing tech can create novel legal challenges and raise questions about balancing innovation and protection.

2. Why Even Luxury Brands’ Bags May Be Tied to “Sweatshop” Labor. The Dior probe raises questions about the workings of companies’ supply chains – even companies that are among the most meticulous when it comes to crafting and controlling the images that they project to consumers.

3. As Daigou Grows Up in China, Where Do Brands Stand? Dewu and other companies like it are contributing to an evolving system of parallel trade in China, where the gray market as a whole generates an estimated $81B in revenue each year.

4. Olympics 2024: What New Social Media Rules Mean for Athletes, Sponsors. Olympic participants are able to memorialize their time in Paris far more freely than ever before.  This comes after the IOC unveiled new social media guidelines in December 2023.

5. Chanel’s Resale Battles Raise Critical Questions for the Secondary Market. The long-running case brings to the forefront critical questions about authentication and advertising in the quickly-growing space, and could potentially reshape how resale companies do business.

6. Court Allows Designer’s Copyright Claim Against Louis Vuitton to Proceed. An indie fashion designer who is accusing Louis Vuitton of ripping off her work saw one of her copyright infringement claims move forward recently.

7. A Running Timeline of Sustainability/ESG Investments and M&A. Our Running Timeline of Sustainability/ESG Investments and M&A is up date. The newest deal on the list: Under Armour, Inc. has acquired UNLESS COLLECTIVE, INC.

8. In case you missed this … Fashion/Retail Legislation Tracker. Here is a running list of key domestic legislation that industry occupants should be aware of – and we will continue to track developments for each and update accordingly.