Diamonds and Due Diligence in Luxury Law
‘Luxury law’ has a certain rich cache, but a Luxury Law Summit in London highlighted some of the issues for lawyers working in luxury brands, highlighting the complex and evolving role of lawyers in the luxury sector, requiring a balance of legal expertise with business acumen and industry-specific knowledge.
The Luxury Law Summit London, held at the British Museum in June 2024, offered a captivating glimpse into the evolving world of luxury brand legal management.
With the theme “Reimagining Luxury: Disruption, Design and Distinction,” the event brought together legal minds from renowned brands such as Loewe, Chanel, Tapestry, and Stella McCartney.
A resounding message echoed throughout the conference: luxury brands must uphold the highest standards of transparency and sustainability. As one speaker aptly put it, “We don’t get to play in this market and charge the prices we charge and misbehave behind the scenes.”
This sentiment underscores the delicate nature of luxury goods and experiences, where even minor missteps can have far-reaching consequences on a brand’s reputation.
The summit emphasized the importance of having a clear “north star” to guide luxury businesses, especially during turbulent times, as a guiding principle should encompass both vision and mission, serving as a compass for decision-making and crisis management.
Relationships with external counsel emerged as a critical topic of discussion. In-house teams expressed a preference for legal advisors who not only understand the intricacies of the luxury sector but also share the company’s values.
Secondments were lauded as an effective way for external counsel to gain deeper insights into the business. The ideal external advisor, according to speakers, should act as a trusted sounding board, providing punchy and cost-effective advice in digestible chunks rather than lengthy memos.
The summit also shed light on career prospects in luxury law, revealing that in-house lawyers now constitute a quarter of the legal market.
Recruiters were encouraged to think outside the box, considering candidates from diverse backgrounds and focusing on developing talent. Key traits sought after in luxury law professionals include resilience, flexibility, and a genuine passion for the brand.
For those new to in-house roles in the luxury sector, the conference offered valuable advice. Lawyers were urged to be brave, ask questions, and build relationships across all levels of the organization.
The legal team’s role as “connectors” was emphasized, with the ability to bridge gaps between different departments and provide a holistic view of the business.
Risk management emerged as another crucial area of focus. General Counsels were advised to advocate for investment in developing comprehensive risk management plans and preparing their brands to handle crises effectively. This proactive approach is vital in an industry where reputation is paramount.
The summit also explored emerging areas in the luxury space, such as sustainable fashion and luxury living for older adults.
A fashion showcase featuring Lucy Tammam’s sustainable haute couture provided a fitting conclusion to the event, highlighting the industry’s increasing focus on ethical and environmental considerations.
As the luxury sector continues to evolve, legal teams find themselves at the intersection of innovation, ethics, and brand protection. The Luxury Law Summit London 2024 not only highlighted the challenges faced by these professionals but also celebrated their crucial role in shaping the future of luxury brands in an ever-changing global landscape.
