Own goal? Foreign brands plan to sidestep tariffs and cut back US exposure says JOOR
It's also interesting that 76% of non-US brands are changing their selling strategies and prioritising partnering with retailers outside the US.
JOOR transaction data reveals that non-US brands conducting business with American retailers on average generate 20% of their sales from the US market. A significant 21% of these brands are extremely exposed to the US market, driving more than half of their sales from the American fashion wholesale channel.
It seems that for the majority of brands — whether they're US-based or not — the favoured options are raising prices or seeking other markets rather than making disruptive changes to well-established supply chains.
As for retailers, the survey data shows 75% of non-US retailers planning to decrease their investment in US brands, which could mean the tariff stagey being a major own goal as far as boosting the export trade from the US is concerned.
Not that it's all negative from the viewpoint of US brands in terms of what's sold within the country. Some 45% of US retailers said their investment in US brands will remain unchanged, but a higher 49% confirmed their plan to increase investment in domestic brands.
The boost this latter percentage might deliver to American brands can be seen from before and after intentions. Before the tariff announcement, JOOR's Spring Market Survey 2025 asked retailers about their investment in international brands, with 47% confirming that they were increasing investment in them. Post-tariff announcement, this sentiment 'dramatically shifted' with only 20% of retailers now planning to increase such investment.
Amanda McCormick Bacal, SVP of Marketing at JOOR, said that 'concern over recently announced tariffs is causing significant flux within the global fashion industry. Brands preparing for market report plans to increase prices, source from alternate countries, and produce tighter collections. Retailers are similarly adjusting their buying strategy and looking to nurture new brand partnerships to help mitigate the impact of tariffs'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
30 minutes ago
- Fashion Network
Estée Lauder entrusts Northern and Western Europe to Franck Besnard
The American cosmetics group Estée Lauder, owner of M.A.C, Clinique and La Mer, continues its reorganization with the promotion of Franck Besnard. At the beginning of July, the group's general manager for France since 2020, was promoted to senior vice president and general manager for Northern and Western Europe, a move he himself shared on his LinkedIn profile. Besnard, who has been with the beauty group for twenty years, had already seen his scope extended last May with the supervision of the Benelux market. This appointment is part of the transformation plan launched by Stéphane de La Faverie, the group's CEO, with the aim of boosting sales against a backdrop of slowing consumer spending. As a reminder, Estée Lauder has redefined its geographic zones into four major clusters. Last April, Nadine Graf, already head of the Europe, Middle East and Africa (EMEA) region, saw her responsibilities extended to the United Kingdom, Ireland, and a new entity covering emerging markets such as India, the Middle East, South-East Asia, and Africa. This structural overhaul comes at a time when the group recorded a 10% drop in quarterly sales, to $3.55 billion, a performance that exceeded expectations but confirmed unfavorable dynamics in several markets, notably China. With this new organization and the focus on experienced profiles, Estée Lauder intends to return to a sustainable growth dynamic. This article is an automatic translation. Click here to read the original article.
Fashion Network
33 minutes ago
- Fashion Network
LVMH: Michael Burke takes over as head of Americas region
Michael Burke is certainly the American executive most highly regarded by Bernard Arnault. The former head of Louis Vuitton joined the French luxury magnate's group in the 1980s. His appointment as president and CEO of LVMH Americas, effective July 7, brings the company full circle. This Bernard Arnault loyalist, who headed Louis Vuitton until 2023, is taking on this new challenge, as first revealed by the American industry trade daily, WWD. He will report directly to Stéphane Bianchi, the group's chief executive officer, while Anish Melwani, chief executive officer of LVMH Inc. and Davide Marcovitch, president of LVMH Latin America, will report to him, according to an internal memo seen by Above all, at a time when the geopolitical context is proving complex and relations between the United States and the European Union have become strained around the subject of customs duties, the arrival of Michael Burke, after a short-lived stint at the head of the Fashion Group in 2024, may deliver two strong messages. On the one hand, his return to the United States, 40 years after he began managing the group's investments across the Atlantic and then directing the activities of Dior and Louis Vuitton in this zone, is a message about the importance of this market, which represents no less than a quarter of the group's global sales, which reached 84.7 billion euros in 2024. Like his parallel appointment as non-executive chairman of the board of Tiffany & Co., it also signals Arnault's desire to exercise precise control over his American activities. The 67-year-old's arrival on the American jeweler's board is presented as "strategic support." In 2024, the brand, the largest acquisition in the group's history, experienced a number of upheavals, including a rebellion by some of its long-standing employees, followed by the departure of others. The arrival of the highly experienced American executive should also enable the company to deploy the potential expected by the group.
Fashion Network
35 minutes ago
- Fashion Network
Amazon Prime Day set to lift US online sales to $23.8 billion, Adobe estimates
Online spending is expected to surge to $23.8 billion across U.S. retailers during a 96-hour Amazon Prime Day event this week, according to an Adobe Analytics forecast released on Monday, as shoppers seek strong discounts on back-to-school gear ranging from apparel to electronics. Sales from July 8 to 11 are projected to rise 28.4% compared with the same period last year, the report said. Retailers recorded online sales worth $14.2 billion during the two-day Amazon shopping event last July. "This is equivalent to two Black Fridays," Adobe noted, adding that budget-conscious consumers are adjusting their shopping habits by using generative AI to find deals and get an early start on back-to-school purchases. Global trade uncertainties, fueled by President Trump's unpredictable rollout of tariffs, have unsettled consumer confidence and put businesses on edge ahead of the July 9 deadline for countries to negotiate trade agreements with the United States. E-commerce giant has extended its sales window to 96 hours, up from 48, as competitors such as Walmart, opens new tab and Target launch their own promotions. Shoppers are expected to take advantage of steep discounts to 'trade up' to higher-ticket items such as electronics, sporting goods, and appliances, while opting for more affordable alternatives in categories like home and garden or groceries. Clothing is forecast to see the deepest discounts at 24%, up from 20% last year, while discounts on electronics are expected to dip slightly to 22%, according to Adobe Analytics. Sales of backpacks, lunchboxes, and college essentials—including headphones and computers—are also expected to increase. The data firm expects Buy Now Pay Later (BNPL) usage to increase slightly during the Prime Day event, accounting for 8% of overall online spending compared to last year's 7.6% share. Adobe's forecast is based on an analysis of 1 trillion visits to U.S. retail e-commerce sites, covering 100 million SKUs and 18 product categories.
