Retailers who prepare for consumer spending to fall using the commercial war of President Donald Trump as a marketing strategy, urging consumers to buy now before tariffs lead to price increases or possible shortage.
A large number of private and direct brands such as Bei, Bare Nedities, Fashion Nova and Knix have mentioned rates in marketing campaigns in the weeks since Trump announced his plans for the so -called reciprocal tariffs in dozens of countries.
While the administration then temporarily reduced rates for most countries, the announcement sent the retail industry to the mode of crisis because it is almost impossible for companies to plan while they do not know how tariffs will finally be shaken. Experts expect consumer spending to fall, creating challenges for large and small companies that could have difficulty resisting that storm.
Some companies that import assets from China that now face a duty of 145% have stopped or canceled orders, while those with supply chains in other parts of Asia, such as Vietnam and Cambodia, are trying to stock up now, since they are still in pause higher tariffs.
The exact impact varies according to the retailer, the sector and the brand. But Trump's commercial war raises an existential crisis for many retailers who earn their money selling consumer products without which they could finally live.
Some brands, such as bare lingerie needs, made a “prior sale to the rate.” The company offered discounts from about 30%, as it told consumers to “stock up before tariffs arrived.”
“Rates? There is no idea. A good deal? We have you. Save up to 30% before prices change,” Bare Needities told customers in a text message. “We didn't know how to spell tariff last week, but we do know: up to 30% discount is a good idea!” He said in another message.
Temporarily reducing prices as brands prepare so that the costs increase can feel contradictory, but anything that retailers can do to “underpin their general finances” Before a possible drop in spending is an intelligent movement, Sonia Lapinsky, partner and managing director of the consulting firm Alixpartners said.
“Retailers should be doing everything possible to obtain as much demand as possible, as soon as possible, because from our perspective, things will really fall from a cliff … We have been seeing a very scary customer since February, March, and has only worsened as the tariff talk has worsened more constantly,” said Lapinsky.
“They do not want to give the entire margin now, but it is compensation, right? As if it is better to have 80% of the dollars now instead of having to clean things or not get any demand at the door within two months. I think they are desperately trying to forecast how it looks this year and have a really challenging moment.”
For smaller brands that lack the scale and expiration of their largest counterparts, increasing cash flow before demand falls could be critical for their survival.
The tariffs “will affect each business, but I think it will impact [smaller companies] More because they have fewer global options for their supply chain, “said Lauren Beitelspacher, Marketing professor at Babson College in Massachusetts.” If you think of a goal and a Walmart, I mean, they definitely have a global supply chain where they can get from countries around the world versus smaller brands … They have limited options. ”
Prior promotions could be a reason why some spending data in March came better than expected because some buyers are now shopping before prices increase, particularly items of large tickets such as cars.
“People who have the media listen to all this talk, are listening to some of the ads, and are actually going shopping so they can get their purchases before prices upload,” said Lapinsky.
Other brands, such as the Beis luggage company, did not make a direct sale of Pre-Tarifa. The brand sent a letter to the buyers explaining that it did not know if prices would increase or how much, but the rates would not change, “for now.”
“Let's saute the corporate point of view: this tariff situation is a complete fire in the garbage container, and we are all burning. Here is the situation: the costs are above, and unfortunately, our prices will have to do the same,” Beis's team wrote in the letter, and added that it is “financially traumatized.” “You are probably wondering what this means for your cart. Unfortunately, we are also honest. We are as confused as everyone else. But the changes come.
The company relied on humor in its message, telling buyers that “our spreadsheets have spreadsheets” and said it has considered everything, from “ran diets throughout the company” to an Onlyfans account to avoid increasing prices. But within the jokes there was a subtle call to action: “If you have been looking at something, it could now be a good time to make your movement, since the current price is still valid, for now.”
To support humor to discuss a politically divisive issue, such as tariffs, is strategic because most brands do not want to alienate customers based on their political beliefs, said Barbara Kahn, marketing professor at the Wharton school.
“Trying to eliminate the stench … so that they do not have to take sides because tariffs are not just an economic mechanism, but are linked to political beliefs,” Kahn said. “You are seeing many brands trying to neutralize some of the political statements they have made in the past, so I think something like humor would spread any kind of political problem and simply make it something: 'Here is a good business. Take advantage of it.'”
