Introduction & Common Threads

We’ve been speaking with brand partners who are navigating a period of heightened urgency, where immediate decisions around inventory, pricing, and margin need to be made quickly, even as longer-term strategies remain in motion. This document focuses on how we can support those near-term choices, particularly for Merch, Ops, and Commercial teams responding to ongoing tariff uncertainty.

There’s a lot at stake. Tariff changes don’t just affect cost, they may reshape margin expectations, disrupt product priorities, assortment breadth, depth and newness, and force a reevaluation of how teams allocate demand-driving spend. In these cross-functional rooms, the focus has narrowed to a few recurring questions:

1. Margin & Forecasts

• What does our revised landed cost structure mean for Q3–Q4 revenue planning?
• Where can we absorb cost without sacrificing volume—packaging, materials, or lower-tier SKUs?
• How do we update margin targets without gutting category momentum?

2. Product Prioritization

• Do we slow the pace of innovation and double down on known winners? Or do we take this opportunity to lean into certain core newness and innovation that could allow us to take share while competitors retreat
• Which products must stay in-market to retain shelf presence or retailer mindshare?
• What are the commercial and brand risks of delaying or dropping newness?

3. Marketing Reallocation

• Where can we shift paid spend to defend volume on core or carryover products?
• Are we still talking to the consumer in the right way, especially as value sensitivity increases?
• What language, channels, or claims will actually move the needle in today’s pricing climate?

These aren’t theoretical discussions. They’re happening now—under tight timelines, with evolving cost structures, and increasing pressure to protect both topline and brand integrity.

Brand Playbook Tactics

Here’s how leading brands are starting to navigate this terrain—using rapid consumer input to de-risk near-term decisions.

‍1. Inventory & Commitments

• Rapid Consumer Demand Testing: Use quick-turn surveys to measure current consumer interest in carryover products and existing inventory, helping Merch and DTC teams allocate investment dollars and focus more effectively.
• PO Cancellation Impact Testing: Ahead of making any decisions to cancel POs, run “what if” scenarios to quantify demand loss or customer impact from cancelling committed styles—especially where retailer orders or early production are on the line.

2. Margin & Forecast Impact

• Price Sensitivity Testing: Conduct price analytics studies to understand consumer willingness to pay under new pricing realities. Use this to protect volume while updating forecasts.
• Cost Mitigation Acceptance: Test consumer response to cost-saving changes like simplified packaging, less premium materials, or design tweaks. Determine what trade-offs are acceptable—and which aren’t.

‍3. Product Prioritization

• Core vs. Innovation Testing: Identify whether to double down on proven volume drivers or make room for newness—helping teams protect margin and reduce risk when tariff uncertainty forces tough calls on what to produce, launch, and market.
• Drop Risk Assessment Studies: Evaluate how consumers would react if upcoming launches were delayed or removed entirely. Use this to make informed calls on GTM risk.

‍4. Marketing Reallocation

• Message Optimization: Rapid A/B testing of value-driven and benefit-led messaging (e.g., durability, versatility, long-term value) to see what language resonates most in this evolving consumer landscape.
• Channel Effectiveness Testing: In collaboration with GTM and Marketing teams, validate which paid, owned, or earned channels are still breaking through—especially if spend needs to consolidate around fewer tactics.

‍5. Market Diversion Strategy

• Regional Demand Validation: If you’re shifting product away from the U.S. due to tariff pressure, test consumer appetite and purchase intent for product you’ve already committed to in potential new regions.
• International Pricing Research: Evaluate price flexibility across markets to identify where higher-cost products might still meet demand thresholds.

‍6. Consumer Validation

• Assortment Optimization: Reassess & diversify regional or tiered assortments to ensure they reflect evolving consumer demand, not just legacy planning.
• Messaging and Price Point Alignment: Use rapid surveys or conjoint analysis to fine-tune the balance between price, product value, and brand tone—ensuring nothing gets lost in translation.

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