The power-packed  webinar, moderated by Tiffany Montgomery from Shop-Eat-Surf-Outdoor, focused on the impact of tariffs on the active lifestyle industry featuring insights from industry leaders including Josee Larocque, Paul Naude, Bryce Phillips, and Matt Powell. Discussions covered supply chain adjustments, pricing strategies and consumer sentiment amidst ongoing economic uncertainty.

My notes and key takeaways:

Impact of Tariffs on Supply Chains

• Josee discussed proactive measures taken by Elevate Outdoor Collective in response to tariffs, including supply chain contingencies and price adjustments.
• Paul echoed concerns about uncertainty and significant price increases for wetsuits due to tariffs, estimating costs could rise from $250 to $330.
• Bryce shared the retailer perspective, emphasizing the need for agility and constant communication with brands to manage inventory and pricing effectively.

Consumer Sentiment and Pricing Strategies

• Bryce noted a reluctance among consumers to pay full price, which has been exacerbated by economic uncertainty and rising costs.
• Paul mentioned that while direct-to-consumer sales have remained strong, the real test will come in Q3 and Q4 as consumers may start to feel the impact of higher prices.
• Josee identified three types of retailer reactions to price increases: outright refusal, negotiation, and wait-and-see approaches.

Future Predictions and Market Trends

• All expressed caution in forecasting for 2025 and beyond, with many planning conservatively due to uncertainty.
• Matt highlighted the importance of innovation and strategic pricing to maintain brand equity during turbulent times.

Potential Industry Casualties

• Josee and Paul acknowledged that smaller businesses might struggle to survive due to liquidity issues and increased costs, predicting casualties in the industry.
• Matt reiterated that well-capitalized companies are more likely to endure the current challenges.

Global Market Dynamics

• Discussion included the potential backlash against American brands in international markets due to tariffs and economic policies.
• All noted that while some brands have been able to pivot, the overall impact on global inventory and pricing remains uncertain.

Employee Communication and Internal Strategies

• Josee emphasized the importance of transparency and communication with employees during challenging times, fostering a culture of respect and engagement.
• All agreed that maintaining a long-term perspective and focusing on brand equity is crucial for navigating current challenges.

The on-demand recording is available now on Shop-Eat-Surf-Outdoor

Hope my notes help your decision making but I highly recommend that you click the link above and watch the webinar in its entirety.

Best,

Vipe Desai

Executive Director