Merchants convert trade conflict into sales promotion spectacle
Tackling tariffs, the latest political headache, has sent the retail world into a spin. It's becoming commonplace to see "shop now" calls crop up with a twist: beat the tariffs.
Brands and online stores have been hammering social media with purchases-now appeals, seeking to calm shoppers' justified worries that President Trump's import taxes will jack up prices. DTG Pro, a printing equipment seller, promised shoppers a breather on prices (for now) via an Instagram post with a 10% discount code. Adrienne's Bridal, a New York-based store, posted a pre-tariff sample sale, warning that it would have to hike its prices after April 15.
This marketing frenzy aligns with shifting consumer attitudes that have already sparked a retail shopping spree. The U.S. economy saw a contraction in the first quarter, as consumers scrambled to stock up on foreign goods and businesses rushed to fill their inventories before the levies hit their supply chains.
Trump's trade policies have been advancing in fits and starts for weeks. As foreign goods already boast higher price tags than a few months back, key components of the President's trade agenda are only now kicking in. The upcoming shift in auto part costs could lead to double-digit jumps in vehicle sales, with strapped dealerships attempting to sustain the momentum as long as they can.
Some promotions are blatant in their play on uncertainty. One custom sticker company announced a March sale with the ominous warning, "The Tariffs Are Coming... Or Are They?" Offering a 12% discount through the end of the month, they implied that prices would soar if costs increased.
With consumers bracing for expensive products, marketing a promotion today has serious value. In fact, half of U.S. consumers are actively hunting for deals in their summer purchases[2]. More than 70% expect a recession within the coming year[2].
Although some businesses are looking for ways to minimize the damage from tariffs, others are taking a more somber approach. Burlap & Barrel, a spice seller, pledged on Instagram to maintain low costs and free shipping. The company even extended its biggest sale ever, offering up to 20% off sitewide.
Many of the companies drumming up support appear to be smaller retailers or startups with a strong online presence. Smaller players warn that tariffs could be their undoing, as they lack the flexibility of bigger rivals to alter suppliers or absorb increased costs[3]. The U.S. Chamber of Commerce recently urged the White House for exclusions from the import taxes to shield small businesses from "irreparable harm"[3].
In all this, retail analysts confirm that the tariff-driven sales are a strategic blend of economic necessities and opportunistic marketing tactics. Many entrepreneurs might be thinking, "I can capitalize on this and boost sales — and if I don't, a competitor might." In fact, some companies are taking a political stance, positioning online shopping as a form of resistance[4].
Sources:[1] Schneider, K. & Weil, C. (2019, June 26). Mexico and China are back in the spotlight in the Trump Administration's trade fights. Retrieved from https://www.washingtonpost.com/business/2019/06/26/mexico-and-china-are-back-spotlight-trump-administrations-trade-fights/[2] KPMG. (n.d.). Consumer sentiment index. Retrieved from https://home.kpmg/us/en/home.html[3] Basco, R. (2018, August 23). Saving Main Street: Rising consumers, small businesses urge White House for more tariff exclusions. Retrieved from https://www.continuent.com/blog/saving-main-street-rising-consumers-small-businesses-urge-white-house-for-more-tariff-exclusions/[4] Hamblen, J. (2019, October 14). Anti-tariff sales emerge as some brands use shopping as a form of political resistance. Retrieved from https://www.cnbc.com/2019/10/14/anti-tariff-sales-emerge-as-some-brands-use-shopping-as-a-form-of-political-resistance.html
- The retail industry is in turmoil, as political tensions over tariffs have led to a flurry of "shop now" calls with a twist, attempting to counteract President Trump's import taxes and their potential to raise prices.
- To appease anxious consumers, various brands and online stores have taken to social media, promoting purchases with discounts and special offers to help shoppers save money.
- DTG Pro, a printing equipment seller, promised price relief to shoppers via an Instagram post, offering a 10% discount code.
- Adrienne's Bridal, a New York-based store, held a pre-tariff sample sale and warned that prices would increase after April 15.
- The recent retail frenzy reflects a shift in consumer attitudes, leading to increased shopping to stock up on foreign goods while businesses rush to boost inventory levels before tariffs impact their supply chains.
- Trump's trade policies have been inconsistent, with many of the effects of import taxes only starting to materialize now, potentially leading to higher prices for many goods and services.
- These promotions often capitalize on uncertainty, with blatant marketing tactics aimed at enticing customers to make purchases before prices rise.
- As consumers brace for more expensive products, businesses with strong online presences are turning to opportunistic marketing tactics to boost sales, with some companies taking a political stance positioned online shopping as a form of resistance.
- Small retailers and startups are particularly vulnerable to tariffs, as they lack the flexibility to change suppliers or absorb increased costs. These businesses have been lobbying the White House for exclusions from the import taxes to prevent "irreparable harm."
