Jake Disraeli’s Post

Great update from Roxanne Robinson for Fashion Network. Random tariffs hurt the industry. Additional broad tariffs will increase consumer prices--no matter where the goods are made. And fashion items as scarves and handbags are not the culprits of trade imbalances or technology appropriation. This will squeeze our already tight margins and put brands out of business.

Excellent breakdown from always insightful Joanna Williams about what our industry faces in the light of Trump’s victory. With proposed tariffs potentially reaching up to 100% on Chinese imports, the stakes are higher than ever. The grim reality that National Retail Federation reveals: - 12.5% to 20.6% surge in apparel prices - consumer spending reduction by as much as 33% This isn’t just numbers on a page; it represents real lives and livelihoods. I agree completely with Joanna that there is no way out if brands don’t reinvent their supply chains. The solution is to work with partners that embrace agile, demand-centric manufacturing, where the production base is not geographically bound, yet the same high-quality standards can be maintained across factories and countries because their manufacturing is AI-native with minimal dependence on labor. The future belongs to those who can adapt quickly. Let’s have a chat about reinventing fashion if - like me - you're in this for the long haul. #tariffs #fashiontech #supplychain #innovation #agile #production #manufacturing #AI #artificialintelligence Debra Langley Jeff Sward Kate Sheldon 🕊 CEO The Fashioneering Lab Sophie Benson Natalie Binns Mallory A. Epping Naeem Riaz Leonard D. Lane Max Henry Greg Merrill

The data nerd in me loves this type of post. Be interesting to revisit this in a couple of years to see how the scenarios are playing out. It also appeals as something I'm covering more and more with clients, is thinking about the separate, but interlinked notions of price, cost, and value as part of their sales equation. There are many more pressures on different costs with increases across the board. Although mainly small, these increases are pressuring margins and forcing a response on prices, at a time when many customers are becoming more price sensitive. This means that the value proposition has to be dialled in and clearly articulated. Something, many clients are struggling with. If you're struggling with sales and/or understanding your pricing, costs, and value propositions and want a conversation, feel free to reach out. #data #scenarioplanning #sales #pricing #costing #valuepropostion

Over the past few days, I’ve struggled to put my thoughts into words. The weight of what this new administration means for American life, culture, and society - especially for more vulnerable groups - is huge. While I process the broader implications, I’m looking pragmatically at what I can immediately assess. With new trade policies on the horizon, the “America First” agenda could significantly impact a fashion industry where 98% of U.S.-consumed apparel is imported (per USFIA). Proposed tariffs—10-20% on imports and a staggering 60-100% on goods from China—could drive apparel prices up by 12-20%, according to the NRF. While this is still “campaign talk,” its not new entirely; it’s an exacerbation of a current Trump-era change. During Trump’s first term, Section 301 tariffs applied up to 25% on $250 billion of Chinese goods, of which fashion, apparel, footwear and textiles products were included. Though some fashion-related product tariffs were later sharply reduced under an agreement for list 4 products, many remain. In theory, tariffs could strengthen domestic supply chains, but the U.S. fashion industry simply lacks infrastructure for large-scale production. This leaves fashion brands with tough choices: accelerate nearshoring or domestic manufacturing—or pass costs onto consumers, and face the implications of that change. With overproduction and inventory planning issues already being a problem, given our modern fast-paced trend cycles matched with our outdated approach, brands will now face the need for even more strategic pricing and planning. Brands are more agile in a post-covid world, but supply chain pivots are challenging. Even companies who were anticipating this shift, like Steve Madden, whose CEO said they’re ready to move 45% of production out of China (but not to the US), will face hurdles. The silver lining, if any? Independent contemporary and designer brands could gain an edge. Many smaller brands, already primarily manufacturing domestically in NY, LA, and other hubs—or those able to shift their supply chain more nimbly—can bypass some of the supply chain and pricing turmoil that'll likely be faced by larger brands. While big brands contend with complex overhauls and price increases, independent brands can focus on delivering distinct collections, maintaining customer connections, and relatively sustaining prices, while benefitting from closer proximity to their producers, allowing for better QC and the ability to appeal to consumers looking for quality craftsmanship. For small to mid-sized brands, now is the time to double down on values-driven messaging, customer-centricity, and community investment. Agility and contingency planning are crucial as brands adapt to this evolving landscape. With likely diminished support for environmental and sustainability initiatives, it’s now more important than ever for fashion brands to champion sustainability, inclusivity, and conscious practices within their own operations.

Elizabeth Segran, Ph.D., raises an important and thought-provoking question: Could Trump's proposed tariffs on China impact the fashion industry in a way that forces us to rethink fast fashion and overconsumption? As Elizabeth explores in her latest piece, the situation is complex. While higher clothing costs could encourage consumers to buy less and demand higher quality, there’s also the risk that companies might further exploit already underpaid workers to absorb the additional costs. The insights from experts like Hilary Jochmans, Amanda Lee McCarty, and myself suggest that the future remains unclear, but the conversation is critical. What do you think? Will tariffs bring a positive change to the fashion industry's environmental footprint, or will they exacerbate current challenges? Check out Elizabeth’s story and join the discussion. #FashionIndustry #FastFashion #Sustainability #Tariffs #Overconsumption New York University

As some of you may know, I've been thinking a lot about Trump's tariffs, and their impact on the fashion industry. I explore all of this in this story, published today. 💵 If Trump is true to his word, he will impose very steep tariffs on China, which is the world's clothing factory. The National Retail Federation argues this will drive up the cost of clothing, since brands will pass on the additional costs to the consumer. 🌎 I asked myself: Could this be a good thing? From an environmental perspective? The rock bottom price of clothing is why we're in a crisis of overconsumption. Consumers have a limited budget. Perhaps this could get us to consume less--and demand that our clothes be better made, so they last longer. In other words, could the tariffs put an end to this devastating period of fast fashion. 😕 When I spoke to experts like Hilary Jochmans, Angeli Gianchandani, MA and Amanda Lee McCarty, I think the answer is very unclear. Some argue that fast fashion is just so damn cheap that consumers will be willing to swallow a 20% increase in price. And others say that fashion companies may exploit workers further, driving down their wages which are already pitiably low, to make up for these tariffs. What do you think? What are you seeing coming down the pike?

📉 Brexit Pressure Sees Apparel Exports Plummet Over 60%! The UK Clothing & Footwear industry has experienced a dramatic decline in exports to the EU since 2019, dropping from £7.4bn to £2.7bn in 2023. This represents a staggering 63.7% decrease! 🔑 Key Insights: • Competitive Disadvantage: UK brands face fierce competition from cheaper global suppliers and Brexit-related disruptions. Clothing inflation reached decade-highs in 2023, squeezing profits. For example, Boohoo demanded a 10% discount from suppliers due to a 14% drop in profit. Smaller businesses like The Underargument saw their EU sales fall from 50% to just 15%. • Increased Friction: Many smaller entities are struggling with additional costs like tariffs and VAT. Luxury brands like Elvis and Kresse lost EU customers due to higher import costs. Registering an EU Entity for trading adds further complexity. • Need for Investment: Brexit, labour shortages, and non-tariff trade barriers have led to delays and increased costs. Investment is crucial for adapting to these new challenges. Despite the challenges, the decline in apparel exports stabilised in 2023, with luxury brands showing resilience. However, the top three UK export categories to the EU have shifted to Health & Beauty, Electricals, and DIY & Gardening. For more detailed insights, check out our full report, “From Brexit to Breakthrough: UK Brands Embrace Marketplaces for Global Success”, produced in partnership with Tradebyte, download your free copy via the link below! 🔗: https://lnkd.in/exNcZkyW #BrexitImpact #UKExports #RetailEconomics #ApparelIndustry #TradeChallenges #Brexit #BrexitRetail #Retail #RetailInsight #EURetail #BrexitChallenges

It's always a treat to spend some talking with Elizabeth Segran, Ph.D.! While I was still in Japan--and wearing my pajamas--I got to have a great conversation with her about tariffs and how they could impact the fashion industry from a sustainability perspective. "Having spent years working in the industry for fast-fashion players including Urban Outfitters and Modcloth, McCarty fears that brands will respond to these tariffs by digging further into the fast-fashion business model. 'I saw this happen during the recession, when consumers were spending less,' McCarty says. 'Brands find ways to keep making clothes cheaper by paying workers less and using even worse materials. It’s hard to imagine clothes becoming even lower in quality, but it is possible.'" If these tariffs become a reality--I am highly skeptical that they will--it's going to be time for us to take action as concerned citizens and educated consumers. I believe that pushing brands to support the legislation like the Fashion Act is one part of that!

👖👗 SHEIN and Temu: the Amount of Shipping Cargo per Day 🎯 #ecommerce #ecommercetrends #shein #temu #cargo #shipping #fashion #marketplaces

"On-Demand" Fashion retailers SHEIN & Temu are exploding rates by swamping airfreight. The e-commerce shipments out of Asia are squeezing airfreight space, with the sector’s peak shipping season still months away 🛬 Tim Scharwath, chief executive of DHL Global Forwarding, said Chinese e-commerce companies have expanded so rapidly in less than two years that they consume more than 30% of cargo space on some routes out of Asia.  🛬 The demand is driving a surge in prices, with the average spot rate of $5.27 per kilogram is more than double 2019 levels Because of the "de minimis" provision of the US trade law that exempts companies from paying tariffs on products worth less than $800 — if they are shipped directly to individual customers, SHEIN ($32B) & Temu ($15.3B) have shot to popularity just in the last year in the US...and will be passing by some of America's greatest apparel retailers. Fellow RETHINK Retail expert Scott Galloway just mentioned that $1 of every $5 will be spent between these 2 companies in this Holiday season. To all retailer experts out there...do we need to change this law? RETHINK Retail Chris Walton Daphne Howland Alicia Esposito Anne Mezzenga Barbara Thau April Waits Jack Stratten Chris Field Dustin Fuhs Gabriella Bock https://lnkd.in/eu77_hKu