There is another consumer concern that might impact holiday spending: China.

James Williams of Loeb & Loeb said recent China recalls have affected business. He said China has been losing some of the West Coast premium market. In regard to the Design Piracy Prohibition Act pending in Congress, Williams said if passed, it could have a major impact on fashion.

"The legislation heavily favors high-fashion producers by outlawing quick and cheap knockoffs of expensive designs," he explained. "The law would give subject designs protection for three years, which would allow the fashion houses time to translate their couture collections downstream into diffusion lines. Therefore, the law offers the high-end designers the dual-edged advantage of couture design protection and expansion into diffusion without competition from fast fashion."

Williams said conversely, "fast-fashion companies such as Zara, H&M, Forever 21 stand to lose quite a bit, as they will no longer be able to ride on the shoulders of upstream designers."

Williams went on to say that even though his clients are predominantly in the high-fashion space, "I have some concerns with the legislation. While I agree with the concept that designers who pour time and money [into] creating a $1,500 dress should not have to compete with a $29.99 version that is a pure knockoff. But the law is not confined solely to this high-fashion-fast-fashion relationship, but rather applies to the industry as a whole."

He said if you walk through Coterie or any of the major markets, "you'll see that in any given category (dresses, for example), much of the high-end designers look alike. It's a trend-driven business and if you give everyone the right to sue if someone else's garment looks similar, it has the potential to radically impact the industry in a negative way."

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