Brand/company's royalty rates and trade dress issues Business Essay

Royalty Rates and Trade Dress Issues
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September 21, 2020
The fashion industry is perhaps one of the biggest industries in today’s world. As early as the year 2010, estimates have shown that this industry has a valuation of over $2,650 trillion and has increased significantly over the past decade CITATION Bre18 \l 1033 (Breyer, 2018). However, despite these achievements, the royalty rates in the fashion industry have also experienced several deifficulties in increasing its performance over the past decade. In this article, these difficulties would be discussed in greater detail.
One of the greatest issues when it comes to the royalty rates in the fashion industry is the decrease in revenues due to the mixture of high royalty rates and the decrease in sales revenue during this pandemic. Just this year, studies show that both fashion and luxury brands have experienced a decline of about $600 billion in sales CITATION Bio20 \l 1033 (Biondi, 2020). This decline is due to the lesser demand for luxury products that are caused by the decrease in purchasing power and an increase in the demand for essential needs. Although a decrease in sales revenues has happened, recent studies would show that royalty rates have continued to increase at about 4.9% throughout the period. This is significant because other industries have the sa...