Geopolitical dynamics have been a hot topic in the last few years, peaking even more over the last few weeks when it comes to tariffs.
WWD’s latest webinar, titled “Piloting Tariff Turmoil: Executive Strategies for Apparel, Luxury, Beauty and Accessories,” explores a recent executive sentiment survey with industry experts from Kearney. Nora Kleinewillinghoefer, partner at Kearney and America’s lead of fashion and luxury, and Drew DeLong, global lead of Kearney’s geopolitical dynamics team, shared insights into today’s landscape.
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The findings of the company’s survey focus on the impact of foreign policy — specifically tariffs — on apparel, luxury goods, footwear, beauty and accessories. The report uncovers how customer behaviors and industry uncertainties are influencing decision-making and dives into the strategies executives are employing to navigate these market shifts.
“This is an incredibly evolving topic and something that’s really been at the forefront of our partners and the people that we’ve been working with,” Kleinewillinghoefer said regarding Kearney’s recent report on tariffs.
Kearney’s survey polled more than 700 executives on the top topics that are being addressed by leaders and the concerns they are feeling, to better understand what is shaping the next era.
When prompted about their biggest challenges, 54 percent of respondents cited the tariff restrictions as the number one “unknown” that they’re facing in terms of how they’re thinking about it, where they see opportunities and where they see challenges. Another 64 percent highlighted rising production and supply chain costs as one of the most pressing challenges at the moment, looking at how they can potentially navigate this from wage, freight, material and energy. At the same time, the third challenge facing these executives is customer response to pricing and ethics.
As she discussed the survey’s full results, Kleinewillinghoefer said what is clear is executives’ response to the question: How are tariffs on clothing goods affecting my company’s supply chain and overall cost structure? Results found that penetration in key geographies is a major driver for most brands, indicating the need for geopolitical strategy management.
While Kearney, the global management consulting firm, is coming up on its 100th anniversary working across most geographies in the world, its geopolitical dynamics team is a newer addition to the company, which covers the full spectrum of consumer and retail opportunities.