Handbags have become a focal point in the ongoing trade war between the US and China. Many producers are online “showing” designer labels made for cheap in factories. It is hard to tell what is true and what is false. However, a nice bag is always nice to have.
@blackandpaper Beautiful Bags from Italy at the MIPEL fair. #handbags #womenshandbag #bags#fashiontiktok #fashion
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The fashion industry already under pressure from consumers cutting spending, then came the tariffs. If there is a fire, pouring more gas on does not help. The stakes went higher, Chinese producers launched a social media assault on luxury brands. Posts detailing the how brands manufacture products in the country. Appealing to common sense and wallets, online speaker’s layout the real costs involved in making pricey handbags selling for thousands in Western shops.
The Luxury Culture has taken a hit with recent headlines concerning sweatshop conditions in Italy but the latest posts could start an unraveling. Labels once ensconced in splendor with mood lite stores now come across as trustworthy as a used car lot in a bad section of town.
What will China’s next salvo involve? Flooding the world with fakes and gray brands is a top guest.
June’s London Fashion Week got cancelled. What was once a main stop on the fashion caravan route is now off the itinerary. The British capital had everything going for it, enough to be in the top four fashion weeks with New York, Milan and Paris. But the scene has taken a hit with many brands moving their runway shows to other cities. London will always be a fashion power given its influence, however a bit smaller. The next LFW happens in September.
Designer sneakers have fallen out of favor. A few years ago, everyone bought a pair of trainers from Balenciaga or Dior at $1000. As shoppers fall back to Earth, expensive sneakers no longer have become the “It Pieces” as buyers trade down to more affordable sneakers. Those red Converse at $45 have never looked better.
It is only April. One thing for sure, the next eight months will be interesting.
As President Trump’s new Liberation Tariffs take hold on the global economy, expect price shocks in every category. Long supply chains already under strain while recovering from Covid and wars now have a new threat, a tax on imported goods. For those accustomed to shopping for low priced goods, that may become an expensive past-time. Those popular Influencer Shein Hauls will soon be out of fashion, dated content. Clothing prices from t-shirts, jeans and sneakers will jump because most are made in Asia. Down trade for that next celebration, grab a bottle of Prosecco, not Champagne. The French bubbly’s price may rise to $200 a bottle.
Even household name giant Apple expects a price increase of over 40% for its iPhone. The cheaper models at a base price of $800 could go to $1200.
As the American leader shows no signs of backing down, digging in his polished heels, buyers need to prepare themselves for a new shift in consumption.
A crisis always offers a moment to rethink. Perhaps it is time to buy less, buy better, make it lasts.