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Apparel, accessories, and footwear retailers are also vulnerable because most textiles and raw materials are imported and lack domestic substitutes. If tariffs persist, retailers may face product shortages. Goods with no US-based alternatives will be especially at risk of running out, and retailers with more local and more resilient supply chains will be in a better position to win customers.

For consumers, clothing and accessories are the top product category during Diwali among smartphone users in India (87%), while jewelry (67%) tops the list for in-store shopping, per a Glance survey.

These historical figures are wearing modern clothing and accessories such as sunglasses, a construction hat, and a casual shirt. The bank鈥檚 chief marketing officer Nathan Kokemor told American Banker the campaign is about 鈥渞epetition and consistency鈥� and that the characters would be present in digital and print media, on billboards, and in person at the bank鈥檚 financial centers.

Some 59% of US consumers will seek more affordable apparel options, like from secondhand retailers, if government policies make apparel more expensive, according to a March survey from ThredUp and GlobalData. Over the next year, US consumers plan to spend 34% of their apparel budget on secondhand, with Gen Zers and millennials planning to spend 46% of their budget on secondhand.

For example, last year, Adidas partnered up with Roblox user WhoseTrade, who designed everything from a virtual rainbow ski to a unique $20,000 virtual necklace that also came with a custom, one-of-a-kind pair of Adidas shoes. Additionally, Walmart Discover's press release said that the experience will spotlight "community creators, from digital fashion designers to experience developers.".

Our take: The move to restructure reflects ByteDance鈥檚 growing dissatisfaction with TikTok Shop鈥檚 US performance鈥攄iscontent that is not really warranted given how quickly it has made inroads with shoppers, particularly in areas like beauty and apparel. But it could also indicate a change in strategy as uncertainty around the TikTok ban and tariffs chills consumer and brand spending.

What the future holds: Levi鈥檚 is confident about its ability to navigate the considerable challenges facing the apparel industry. Its growing brand heat鈥攕toked by partnerships with Beyonc茅 and Timoth茅e Chalamet鈥攈as handed it pricing power, CEO Michelle Gass said, although any hikes will be 鈥渟urgical.鈥�.

The news: Tariff uncertainty is leading to technology price increases, with Microsoft raising global prices on Xbox consoles, accessories, and games, citing inflation, tariffs, and ongoing supply chain disruptions, per The Verge.

Expanded reach: Support for menswear and a forthcoming peer-to-peer resale platform allow brands to expand their presence in circular fashion across categories. Marketing support included: On-site ads, social campaigns, and co-branded promotions showcase resale leadership鈥攁t no added cost.

The sales drop could also hasten Shein鈥檚 attempts to shift production away from China, although doing so could come at the expense of the supply chain flexibility that has been key to the retailer鈥檚 fast-fashion dominance. Our take: Even with the impact of tariffs factored in, Temu and Shein have a price advantage over competitors.

Because 97% of apparel and footwear in the US is imported, tariffs will almost certainly raise prices鈥攁 point already acknowledged by brands from Columbia Sportswear to Shein. Sticker shock will steer more Gen Z shoppers toward resale. It will build off an already sizable base: 68% already buy secondhand, up 3 percentage points YoY, per ThredUp鈥檚 2025 Resale Report.

But in high fashion, change takes time鈥攁nd investors may have to wait a while before those creative risks turn into results. That patience, however, will likely be tested. Luxury brands have historically sailed through economic rough patches by leaning on pricing power and a loyal, affluent customer base. But today鈥檚 macro backdrop is more precarious.

In 2024, luxury cosmetics and beauty sales will grow by 4.0%, more than double the 1.9% growth rate for apparel, footwear, and accessories. But an ongoing downturn for travel retail channels, increased competition from local brands, and heavy discounting expectations from online shoppers have stymied global prestige beauty players, including Est茅e Lauder and L鈥橭r茅al.

That鈥檚 despite already selling the most expensive running shoes, on average鈥攚hich says a lot about On鈥檚 confidence in both its product and consumer demand. Our take: Premiumization holds obvious appeal for sportswear brands, allowing them to raise prices and burnish their appeal to wealthier consumers.

Footwear, apparel, and fragrance were the top purchase categories among shoppers ages 18 to 34. Department stores were the No. 1 location for shopping for luxury goods, beating out all ecommerce and brand-owned channels. But the majority (57.4%) of people 18 to 34 were interested in social commerce for shopping for luxury goods, the survey found.

We project that 83.2 million consumers, or 24.2% of the US population, will wear accessories or clothing designed to monitor or measure health and fitness activities. Examples include the Apple Watch, internet-connected Fitbit devices, and the Oura Ring. The number of health-related smart wearable users will grow 4% in 2025 from the year prior, per our forecast.

Our take: Adidas鈥� strategy is clicking with consumers, and the brand is banking on its portfolio of 鈥渕odern silhouettes鈥� in its lifestyle category鈥攁long with innovations like the 3D-printed Climacool shoe鈥攖o overcome macroeconomic and geopolitical headwinds and drive high single-digit sales growth in 2025. That would position it to continue chipping away at Nike鈥檚 market share.

Wardrobing: A form of returns fraud where consumers buy clothing, use it, and then return it. Consumers promoting these behaviors or "hacks" for returning on social media have worsened ecommerce return issues. It's not just a consumer behavior issue. Inaccurate product information, inconsistent sizing, and quality issues lead to more returns. Paying the price.

Online fashion resale remains a fast-growing retail channel despite ongoing economic headwinds鈥攁nd Gen Z is the driving force. How can brands and retailers venturing into fashion resale find success amid pullbacks on discretionary spending?

Retail includes mail-order/catalog; restaurants/fast food; drug stores; retail stores; cosmetics stores; and merchants of apparel, home furnishings/textiles, toys, pet food/supplies, appliances, jewelry, and general merchandise. Apparel and accessories includes clothing such as sportswear and workwear, luggage, watches and jewelry, handbags, eyewear, and footwear.

While Skechers declined to say how much it relies on hubs like China and Vietnam for manufacturing, the company did note that it depends on the former for products like children鈥檚 shoes that are cost-prohibitive to produce elsewhere.

The news: Fast-fashion brands Shein and Temu increased their European digital ad spend in April, per Sensor Tower data cited by Reuters. The change reflects a pivot away from the US market, where Chinese merchandise faces steep tariffs. By the numbers:. Shein and Temu鈥檚 spending was most notable in the UK and France.

Categories like women's apparel and jewelry underperformed, requiring heavy discounting to clear inventory. Department stores battled sluggish traffic and selective spending on luxury fashion. What it means for 2025:. Value-consciousness is paramount across all income levels, with affluent shoppers trading down to mass retailers for certain purchases.

Being able to get items back on the market quickly is crucial for categories like apparel and consumer electronics, where trends move fast. 鈥淵ou may have only three or four months to get a product back on the shelf before it loses its value,鈥� said Johnson. Third-party partners like ReturnPro can help brands quickly refurbish and restore electronics, increasing their resale value.

Grocery is now the second-largest ecommerce category behind apparel, footwear, and accessories. Digital grocery sales will grow by more than $67 billion over the next four years. Section 2: Evolving consumer habits. Nearly 7 in 10 ecommerce buyers will make at least one digital grocery purchase in 2028. Online grocery shopping is a weekly occurrence for many digital grocery buyers.