Corporate Partner Eric Perlmutter-Gumbiner shared his insights on trends within the branded consumer products industry for LA Times Studios' Beauty, Fashion, & Consumer Goods Roundtable.

Below are Eric's excerpts from the feature:

How would you describe the current outlook(s) for the beauty, fashion, and consumer goods sectors in 2025?

The market feels more selective but still full of opportunity for the right brands. The “growth at all costs” mindset is behind us. Investors and strategic buyers are looking for durability, clear ownership of IP, clean books, defensible margins. That’s where I’ve been spending time with clients: helping them build the legal and commercial infrastructure to scale responsibly and prepare for their next deal. Brands that combine vision with discipline are still getting attention and commanding strong valuations.

Are there any new trends in protecting IP in the fashion and beauty sectors today?

Yes, especially around creative content and co-developed formulations. With AI tools and external collaborators now playing a bigger role in branding and product development, ownership needs to be clarified early and explicitly. I’ve seen disputes where no one can prove who owns key brand elements, and that becomes a real issue in diligence. We help clients lock this down upfront through clear agreements with freelancers, agencies, labs and partners. A beautiful brand isn’t enough if you don’t truly own it.

What are the latest regulatory developments affecting product labeling, ingredients, packaging and marketing in these industries?

There’s a lot of attention right now on marketing language, especially around sustainability, “clean” ingredients and eco-friendly packaging. California regulators are pushing for much more substantiation behind these claims, and founders can’t afford to treat this like a copywriting exercise anymore. I work closely with clients to pressure-test their messaging early, so they’re not caught off guard later. It’s also a deal issue: Acquirers don’t want to inherit regulatory risk. If your claims aren’t backed up, that’s now a liability.

What do investors look for in a health, beauty or consumer goods company these days?

They want to see that a brand is ready – not just for scale, but for scrutiny. That means clear IP ownership, properly documented equity, clean contracts with co-mans and vendors, and financials that tell a coherent story. Great products and a loyal following matter, but the brands that get funded or acquired are the ones that don’t trigger red flags in diligence. I help founders focus on that long before a term sheet is on the table.

What advice would you give to early-stage brands in navigating scale, especially while based in a competitive market like Southern California?

Professionalize early. The SoCal brand ecosystem is incredibly creative, but creativity alone isn’t enough to scale. I tell founders: Treat your IP like it matters, paper your equity properly, and negotiate contracts that reflect where you’re going – not just where you are now. The strongest brands I work with build legal infrastructure as a way to stay agile and deal-ready. That doesn’t mean over-lawyering – it means being intentional so that growth doesn’t create risk.

*This roundtable was originally published in LA Times Studios and can be accessed here.

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