How Tariff Shifts Are Reshaping Consumer Behavior—And What It Means for Small Brands

"What's Going On With Clothing Prices?".

It wouldn't be surprising to hear someone asking this on the street or even directing the question straight at you. Or if maybe even you asked yourself this recently while shopping.

In this case, this question isn't just a casual conversation starter but the title of a recent New York Times article that highlighting growing concerns about clothing prices in the U.S. and the potential impact of tariffs on these markups.

This, in turn, underscores another rising topic of discussion: tariffs.

“This is why tariffs have the fashion world so nervous, since they will obviously affect the markup, potentially pricing some goods out of the market and, perhaps,prompting a reconsideration of who, exactly, pays what.”

The Times isn’t the first to highlight this issue or the ongoing concerns surrounding tariffs.

New data from ThredUp’s upcoming 2025 Resale Report pointed out that sixty-two per cent of consumers express concern that new government policies on tariffs and trade could drive up the cost of apparel, prompting them to reconsider their shopping habits.

It's important to remember that tariffs fluctuate, and for now, their direct impact on consumer spending remains unclear, as highlighted in the Vogue article mentiones, through expert insights.

However, predictions suggest real consequences ahead, validating consumer concerns and potentially shifting shopping behaviors.

For brands—especially small and medium-sized ones—it’s essential to stay alert not only to the tariff changes but also to these evolving consumer habits.

But rather than viewing these shifts with apprehension, it's crucial to recognize the opportunities they present.

Meaning these changes could open doors for SME brands and independent designers.

How? As consumers become more selective, their focus will shift to affordability also authenticity, uniqueness, and true value.

So, how can small brands thrive in this evolving landscape—ethically and strategically?

A Creative Approach: Quality Over Quantity

The search for lower-priced clothing goes hand in hand with the growing interest in secondhand shopping and resale markets.

"When consumers are squeezed, they make smarter choices that focus on value, framing a shift to secondhand as a ‘nice potential tailwind.’” – Vogue Business

For small brands—especially those led by designer-entrepreneurs—this shift presents an opportunity.

By embracing what makes thrifting so appealing (affordability, authenticity, and uniqueness) independent brands can capture consumer interest in a meaningful way.

Rather than following seasonal collections typical of fast fashion, smaller brands can concentrate on releasing a limited number of carefully curated items.

This approach not only makes the products more affordable but also drives consumer interest in what you offer.

As shoppers become more intentional, moving away from big brands due to rising costs, they are likely to perceive your brand more positively and understand it's aligned with their values and shopping preferences.

Repurposing & Recycling: A Smart, Sustainable Strategy

Upcycling has been a strategy used by luxury and big brands, transforming discarded materials into high-value products—a strategy gaining traction due to its sustainability.

First and foremost, let's remember what upcycling is → Upcycling takes old, damaged, or unused garments and turns them into fashionable, practical, and often unique items. Unlike recycling, which deconstructs materials, upcycling improves and reinvents them, cutting down on waste while showcasing creativity.

For small and medium-sized businesses, this can provide a competitive advantage by emphasizing authenticity.

According to a survey on post-pandemic shifts by Stackla, a leading visual content marketing platform, 88% of consumers say authenticity is a key factor when deciding which brands they like and support

This proves that authenticity can be a small brand's best friend in growth.

Remember, authenticity is about doing things uniquely, standing apart from fast fashion, and using your brand’s voice and purpose to guide your collections.

Approaching your designs with a distinctive lens, like the one we're discussing here with upcycling, can be top-notch strategy, that brings on a few other advantages:

• Lower Costs for you → Repurposing existing materials not only reduces textile expenses by utilizing leftover fabrics and unsold inventory, but it also cuts down on waste management costs. This frees up budget to reinvest in areas such as design, marketing, or even expanding production capabilities.

  
  

  
  

• Flexible Pricing for Your Customers → Creating unique, lower-cost products through upcycling allows for a wider range of pricing options, from affordable reimagined pieces to premium limited-edition items, giving customers more choices and helping the brand reach diverse market segments.

• Sustainability as a Sales Driver → According to PwC’s 2024 Voice of the Consumer report, more than 80% of consumers are willing to pay a premium for sustainable products. By repurposing materials and sharing the story behind each piece, you can create products that resonate with eco-conscious consumers and highlight the positive environmental impact of your choices.

  
  

Brands to Get Inspired By

• Imli Dana

Imli Dana is a small-scale, sustainable fashion brand founded by designer Shradha Kochhar. The brand specializes in creating upcycled clothing and accessories, sourced from deadstock materials.

With a focus on craftsmanship and creativity, Imli Dana reimagines discarded fabrics into unique, one-of-a-kind pieces, reflecting a blend of cultural influences and sustainability.

Image from www.imlidana.com

___

• Think Blue Upcycled

Think Blue Upcycled and Slow Fashion is a brand founded by Mirella Rodrigues, aimed at reducing the negative environmental impact of fashion. The brand focuses on creating garments such as pants, jackets, skirts, dresses, shorts, and tops, all made from repurposed jeans, cutting them into pieces, and then reassembling them into new, unique products.

Image from: www.thinkblueupcycled.com.br

___

Your Upcycling Strategy Enhanced by Technology and Digitization

Beyond the buzzwords of AI, social media, DPPs, and blockchains, technology plays a pivotal role in the early stages of your supply chain, particularly in sourcing the right materials for your brand.

While some upcycling brands repurpose materials from other industries or businesses, you can take a similar approach by repurposing your own materials—using every scrap of textile you source to create accessories or additional garment pieces.

This mindset will offer you all the benefits mentioned in this post, but to make it feasible, sourcing high-quality materials with ease must be your first step.

Platforms like World Collective's Marketplace are leading the way in transforming textile procurement, offering a seamless solution for apparel brands seeking not just eco-friendly textiles, but ones that are qualified, certified, and durable.

How it works:

• Brands can easily locate the specific textiles they need with a user-friendly search function.

• The platform allows for precise selection of quantities, ensuring brands can order exactly what they require.

• Before committing to a large purchase, brands can request samples to confirm that the textiles meet their quality and design standards.

These materials are designed to cater to the diverse needs of modern apparel brands aiming to innovate with strategies like upcycling and beyond.

Sourcing materials is as simple as clicking here > https://marketplace.world-collective.com/

To discover how technology can give your brand a competitive edge in this evolving landscape, continue reading here: https://world-collective.com/blog/revolutionizing-supply-chains-how-technology-is-changing-textile-sourcing

___

Written By Maria Eugênia Lima, Content & Marketing Intern at World Collective