Key Takeaways from Anchin’s Latest Fashion Roundtable

Anchin’s Fashion Group recently hosted an intimate roundtable, bringing together fashion industry leaders for an open discussion on the current state of the fashion market and strategies for companies going into the new year. The conversations that unfolded covered a range of topics and priorities for the industry leaders, touching on the most pressing issues and trends shaping the industry today.

Tariffs Continue to Dominate the Discussion

Tariffs remain one of the most significant factors influencing decisions for many fashion companies, prompting many to reassess strategies aimed at reducing costs while preserving quality.

• Pivoting Production: Many brands that had previously sourced most of their production from China discussed the decisions to shift a portion of their sourcing and/or production to other regions, such as Cambodia and Vietnam, due to lower tariffs.
• Mixed Outcomes: Not all shifts have been successful. Some companies attempted similar moves but ultimately returned to China because tariff savings were minimal and quality concerns persisted.
• Myanmar Challenges: Effective August 1, 2025, the U.S. raised tariffs on Myanmar to 40%, surpassing even China’s rates. However, duty-free imports into Europe have helped offset costs. To manage tariffs, they introduced a surcharge to retailers.

While some countries offer efficiency and quality, higher tariffs continue to make long-term planning difficult, forcing companies to play the “long game” to better anticipate future shifts.

Tarriff Refunds and Supreme Court Optimism

Recent discussions about potential tariff refunds have sparked interest, although most anticipate that these changes would likely be prospective, rather than retroactive. Some businesses are exploring creative options, such as selling refund rights, but the overall impact is expected to be modest.

With tariffs unlikely to disappear, brands are finding ways to manage costs without alienating their customers, including:

• Spreading Costs: Some companies reported success in distributing tariff expenses across the supply chain to avoid the risk of shocking loyal customers with steep price hikes. Alternatively, others acknowledge that this approach is a temporary fix, with some noting that factories that had previously agreed to discounts are already removing them due to claims of a more stable environment.

• Vendor Dynamics: Discounts offered during uncertain times are disappearing as vendors stabilize, creating challenges for brands in setting prices for upcoming collections amid the current economic unpredictability.

AI Integration in Fashion

Recent conferences have highlighted the rapid adoption of AI across the industry and beyond. AI is transforming operations by enabling teams to quickly analyze data, uncover context behind insights, and streamline processes. As technology evolves, businesses are increasingly recognizing the importance of partnering with software providers committed to continuous innovation and expanding their capabilities. Solutions that adapt and grow with organizational needs are becoming essential, while vendors that charge extra for basic support or fail to keep pace with advancements risk falling behind.

Other Notable Discussions

Significant payment delays from retailers (some up to nine months) have prompted several brands to stop shipments to them altogether. This served as a reminder of the vital importance of reliable payment practices and strong partnerships in today’s market, and also as a warning to be conservative in projections about expected payments when managing cash flow.

The holiday season has proven to be more promising than many anticipated, yet forecasts for 2026 remain uncertain. Consumer spending is currently strong, but expectations suggest that this may not be sustainable throughout 2026, provoking cautious optimism. Each iteration of this roundtable reinforces the power of collaboration and shared insights. The ideas exchanged provide founders and the Anchin team with valuable solutions and strategies to navigate an ever-changing industry.

For more information or to be included in future roundtables and other Anchin events, please contact Marc Federbush, Partner and Leader of Anchin’s Consumer Products Group, Michael Greenfield, Partner, Thomas Miranda, Partner, Carolyn Naporlee-Cipolla, Director and Co-Leader of Anchin’s Beauty, Health, and Wellness Group, or your Anchin Relationship Partner.