Prior to the COVID-19 pandemic, key players in the fashion industry relied heavily on trade shows. With health and safety restrictions loosening in many parts of the country, live events are starting to return. Nonetheless, it is important to carefully review any trade show contracts to determine what happens should another COVID-19 surge require cancellation of the event.
Fashion Industry Trade Show Outlook
Most trade shows and other fashion industry events came to a screeching halt in March 2020. Unable to host in-person events and meetings, many businesses turned to technology, which proved to be a viable alternative even if it could not completely fill the void. The COVID-19 pandemic demonstrated that much of what occurs at trade shows can be accomplished virtually. In addition to hosting trade shows online, the industry also worked to create new digital marketplaces where brands and buyers could connect and conduct business online.
When they couldn’t display their products in person, many brands and suppliers created online content that showcased their products. Bob Maricich, CEO of International Market Centers (IMC), told Apparel News that IMC’s new content stream for Atlanta Apparel — which contains more than 50 videos of fashion shows, business-education seminars, trend previews and retailer highlights — has attracted more than 100,000 views. Other brands and suppliers augmented their online presences with tangible products and samples, such as shipping “trend” boxes to buyers that featured their latest goods.
While the fashion industry’s new digital tools proved successful, most agree that the in-person interaction between buyers and sellers is difficult to fully replicate with technology. More than a year later, in-person events are slowly returning.
For now, in-person trade shows look a lot different, with limits on attendees and enhanced health and safety protocols in place. In August, Magic Las Vegas returned, featuring more than 700 brands and retailers. In September, Magic New York and Coterie New York both held their first in-person shows in 18 months at New York City’s Jacob K. Javits Center. The events featured enhanced sanitation with a focus on “high touch” areas, numerous hand washing facilities and wider aisles to accommodate social distancing. Attendees were also required to wear face masks while indoors.
While fashion industry trade shows are returning, it is expected to take years to return to “normal.” COVID-19 global travel restrictions remain in place, and many businesses are still limiting their participation in live events. Some potential attendees are also still understandably feeling cautious about attending gatherings with large crowds.
Hybrid Shows Are Here to Stay
This summer, Texworld New York City adopted a hybrid approach to accommodate its international exhibitor base, which is still subject to travel restrictions. While there were no physical exhibitors at the event, buyers were still able to see and touch thousands of materials and accessories. Then, by scanning a QR code, attendees could connect with exhibitors using a virtual platform.
Even when all COVID-19 restrictions are lifted, the enhanced “digital” aspect of fashion industry trade shows is likely to stick around. Retailers, brands, suppliers and other key players have reported that they appreciate the ability to connect virtually before, during and after events. They also value being able to access content, such as seminars or fashion shows, on their own time.
What If the Show Doesn’t Go On?
While the number of in-person fashion events is expected to grow as we enter 2022, COVID-19 has taught us to prepare for uncertainty, even when it looks like we have the pandemic under control. The good news is that, unlike in March 2020, we know more about what we’re up against, and businesses can be proactive in protecting their legal and financial interests.
When executing contracts related to trade shows and other in-person events, it is imperative to determine your legal obligations and rights should the event be cancelled or postponed. Key considerations include: under what circumstances can an event be cancelled, postponed or transitioned to a virtual format; how much notice must be given prior to event cancellation/postponement/transition and what financial compensation (if any) is available to exhibitors, attendees and vendors when such changes occur. Businesses should also evaluate what insurance coverage may be available if an event is cancelled due to COVID-19. While many of these issues were not addressed prior to the pandemic, businesses can now avoid potential uncertainty by being proactive.
Key Takeaway
While many fashion industry trade shows will continue to incorporate virtual elements, large-scale in-person events appear poised to rebound as we enter 2022. While this is great news for fashion industry professionals, COVID-19 is not yet completely in the rear view. Accordingly, it is still important to take steps to limit your potential legal and financial risks should events be cancelled.
Howard D. Bader serves as general counsel for clients in a wide range of industries on an international scale. With over three decades’ worth of legal experience, he has represented clients in numerous legal matters, including commercial litigation, intellectual property, bankruptcy and creditor’s rights and mergers and acquisitions, as well as numerous corporate transactions and business law matters.
hbader@sh-law.com
(212) 784-6926
www.sh-law.com
