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.

Yes, in today’s shifting economic landscape, tariffs are in constant flux. And while they may rise and fall, one thing is clear: consumer concerns are real and already fueling significant changes in shopping habits and spending priorities.

In a recent WGSN podcast, CEO Carla Buzasi and Head of Events and Marketing Cassandra Napoli discussed how consumers are grappling with layered anxieties—from climate crises to financial uncertainty and job instability.

As Napoli highlights, these mounting pressures suggest that many are nearing a breaking point. For brands, this signals a critical call to action: success now depends on truly understanding and addressing consumer emotion. In this high-stakes environment, sentiment is the foundation for building lasting relevance.

"During this time, everything we do as forecasters starts and ends with the consumer, right? And so businesses will really not be able to survive during these times without understanding consumer emotion and reacting accordingly."

- Cassandra Napoli, WGSN’s Head of Events and Marketing

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.

This shift in consumer mindset is gaining real momentum, especially visible across social media trends.

On TikTok, for example, the rise of “minimalist-core” and “underconsumption aesthetics” reflects a growing desire among consumers to embrace less—prioritizing intentionality over excess.

This isn’t just a passing trend; it signals a broader cultural recalibration.

As highlighted in the WGSN podcast mentioned earlier, Cassandra Napoli notes that in the face of rising fashion costs, brands now have a powerful opportunity:

“There’s an opening for broader deconsumption trends to take hold—as we’ve seen with the rise of underconsumption-core on TikTok. What this means is that businesses have the chance to lean into circularity: to rethink, reuse, repair, and recycle.”

For brands navigating this evolving landscape, aligning with these values is essential for long-term relevance and resilience.

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.

Industry voices are echoing this shift, too. In the podcast conversation hosted by WGSN, circular strategies like reuse, repair, and reinvention were spotlighted as not only sustainable but smart business.

The discussion explored how brands can navigate economic pressure and tariff uncertainty by rethinking SKUs, leaning into proven sellers, and repurposing existing stock to trim waste and reduce costs.

A particularly inspiring idea shared was WGSN’s concept of "re-storytelling"—reviving core items from past collections and reintroducing them with a fresh narrative for today's consumer.

For brands feeling the pressure of shifting consumer behavior and rising production costs, this approach offers a powerful path forward: creative, cost-conscious, and aligned with the values driving modern fashion.

If you’re curious to dive deeper into how tariffs are influencing consumer behavior and reshaping the flow of the fashion industry, we highly recommend tuning into WGSN’s podcast.

We’ve referenced it a few times throughout this post for good reason—the insights are sharp, timely, and incredibly relevant.

Click below to explore the full episode and get the full picture:

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.

Added to that, by reviewing existing inventory through an upcycling lens and optimizing product assortments, brands can not only reduce production costs but also breathe new life into idle stock.

This approach transforms excess inventory into design opportunities—allowing brands to create fresh, relevant pieces without the expense of sourcing new materials.

At the same time, it helps mitigate the impact of fluctuating tariffs by minimizing reliance on imported textiles and overproduction.

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.

Reinforcing this, a recent The Guardian article reported that 89% of people globally want stronger action on the climate crisis—with over 60% of them willing to contribute at least 1% of their income toward meaningful change.

Plus, The State of Fashion 2025 report, released earlier this year, stated that the climate crisis would continue to shape consumer behavior, emphasizing that companies adopting a long-term approach to sustainability are likely to benefit from greater operational efficiency and a competitive advantage.

The takeaway? Yes, consumer behavior is shifting—but it’s also driving a new economic logic for sustainability, where transparency and responsible practices directly shape purchasing decisions.

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.

Fashion Brands That Are Championing Upcycling in Their Production Models

• 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.

Courtesy of Imli Dana

• Newless

For brands looking to dip their toes into the world of upcycling but unsure where to begin, Newless offers a compelling blueprint for both creative direction and business strategy.

Their approach transforms upcycling into an elevated experience that’s accessible and engaging.

By turning preloved garments into bespoke pieces—think oversized blazers reimagined as matching cropped sets or trousers reworked into sleek mini skirts—Newless proves that upcycled fashion can be both trend-driven and commercially viable.

For any brand looking to ignite their upcycling journey, Newless stands as an inspiring example of how to build a low-impact, high-style offering that resonates with today’s conscious consumer.

Courtesy of Newless

• 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.

Courtesy of Think Blue Upcycled

Moon Chang

Moon Chang pushes material innovation by creating in-house textiles that look like leather and fur, but are crafted entirely from recycled and reclaimed materials.

For example: a faux leather made from recycled plastic that's waterproof and wash-free, blending sustainability with function.

They use recycled materials and textiles from the local fashion markets in Seoul, New York, and Italy, all sourced with a commitment to sustainability. The brand works exclusively with fabrics that are Global Recycle Standard-certified, ensuring the highest standards of eco-conscious sourcing.

Every piece is finished with care labels designed to educate and extend garment life—turning recycled fashion into a refined, responsible statement.

As a visionary designer and faculty member at Berkeley College's Fashion Department, Moon Chang not only champions sustainable design but also immerses herself in hands-on educational initiatives.

In a recent collaboration with the Fashion Degree Program, she worked directly with students to construct flower adornments for their Fashion Act pins—using deadstock fabrics donated by the industry to the Berkeley Fashion Lab.

World Collective proudly contributed by donating the pins, reinforcing the brand's commitment to fostering creativity and sustainability in the fashion community.

This collaboration shows how Moon Chang thrives by incorporating sustainability into every aspect of its business—from collections to social impact.

The key takeaway: to be recognized as truly sustainable in the fashion industry, brands need to amplify their outreach and sustainable efforts beyond collections and sales, creating impact across all touchpoints.

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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

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