US tariffs are having a twofold impact. The resulting, and inevitable, rise in shoe prices is worrying the footwear industry, while the same phenomenon in luxury handbags is playing to the advantage of resale platforms. Here is how industry insiders see the contrasting market outlooks.
The double effect of tariffs
In the United States, 2.5 billion pairs of shoes are sold every year — around seven per person. “We are in an unprecedented period where everything will become more expensive because of these widespread tariffs around the world”, says Matt Priest, President and CEO of FDRA-the Footwear Distributors and Retailers Association. According to Priest, until now distributors have tried every possible measure to avoid raising prices, but from here on there will be no escape.
Demand, he warns, is bound to decline. “It’s inevitable”, he adds. Priest also fears rising unemployment and a slowdown in the labour market, which could trigger a reduction in household spending just as food and other essential goods become more expensive. “It’s incredibly difficult to run a business and know what your margins will be”, notes Pat Mooney, CEO of Footwear Unlimited, speaking to Footwear News. Another layer of uncertainty lies in the forthcoming Supreme Court ruling on the enforceability of the tariffs.
The second-hand boom
The 15% US tariff on imports from the European Union is another setback for the luxury sector, already grappling with weakening demand. But it is proving a boost for the expanding resale market, as consumers look for more affordable alternatives. Second-hand also offers greater accessibility, authenticity and sustainability. “Despite the new 15% tariffs, average resale prices have remained stable, including handbags, making second-hand an even more attractive option while retail prices continue to climb”, Maximilian Bittner, CEO of Vestiaire Collective, tells WWD. Resale platforms agree that consumer interest has held steady, but expect a surge once collections from new designers debut on the catwalk. History shows that resale demand often rises in such moments.
Photo: Shutterstock
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