Anxiety is mounting across the retail sector as the US ramps up tariff threats. But experts say brands that adapt fast – and rethink old strategies – can still find opportunities amid the disruption.

“While the US is the massive golden egg in terms of consumers, there are also other markets for us to think about equally, that pivot towards regionalisation and diversification of supply chains,” Anson Bailey, head of consumer and retail, Aspac at KPMG, told a webinar hosted by Centric and Inside Retail.  

“That’s already been happening. During Covid, we saw many of the brands and many of those different retail groups focusing on that diversification.”

Asia Pacific brands now have an opportunity to tap into new markets and customer groups that they may not have considered before, because the US has traditionally been such an attractive market. 

“Sometimes we get very fixed on particular markets,” continued Bailey. “The reality is that we are also seeing other markets growing and developing … and a big market in the European Union.

Closer to home, Asia offers some interesting emerging markets, said Bailey. Among them, Japan which has become a popular tourist destination thanks to the declining value of the yen.  

Hong Kong is another with potential, because retailers have traditionally been so fixated on inbound tourists shopping, especially those from the mainland, that they forgot about Hong Kong’s own consumers, who are significant spenders. 

“A key message for all of us is we need to be agile and flexible. We need to do our homework, and we need to ensure that we understand those different markets as well,” urged Bailey. 

“Let’s not have a narrow focus, but let’s think about the different demographics, the different geographies, and the opportunity to pivot into a number of other markets as well. All those Asean markets are growing now. Let’s not be totally fixated on the US consumers.”

Nick Wei, senior sales director at Centric Software, added that a lot of successful Asian brands have already achieved global expansion. 

In fashion, Asia is not yet able to claim many high-end fashion labels, he says, but has successful brands such as Uniqlo from Japan offering reasonable prices, good quality basics through to Bathing Ape, the more pricey street culture brand. Other Asian-based global brands include Shein, known for low-cost fast fashion, Chinese sportswear brand Li Ning, very popular in Eastern Europe, and the Singapore womenswear label Love, Bonito. “The key point here is that they must be able to dominate in their niche, or invent their niche. Then they can go global,” said Wei. 

Bailey added that many multinational retailers recognise that Asia is a growing market with growing consumption levels, but it is also a very competitive market. “I have talked to a number of those multinational retailers that think they can just waltz into Asia and win. The reality is, there is a lot of competition here from great Asian retail brands that have built a strong following and are now producing some good quality products at competitive pricing.” 

Choose your battles

Heather McIlvaine, features and premium editor at Inside Retail urged retailers to look closely at the cost of producing and shipping their goods as the tariff crisis worsens. 

“If you can’t fight the tariffs, focus on what you can fight, and the other input costs that may be a little bit more flexible.”

All three panellists highlighted the need for businesses to collaborate with other industry players to co-create, co-invest, understand what stock they have, and potentially combine forces on production. 

Anson said brands should ensure they use technology and innovation. “It is not going to solve all the problems, but it will enable you to be a lot quicker and more agile in getting stuff done.

“Business as usual is not an option. We now need to embrace those innovations and technologies. There is a need for all of us to be agile and ensure you have a plan, and quite frankly, not just a Plan B, but you probably need a plan B, C, D, E and F. 

“Yes, tariffs are on everybody’s lips, but at the same time, we have got to be measured. We have to have a plan. Let’s step back and inhale and see how we can all work together.”

Wei agreed that brands and manufacturers need to be agile. “You have to be able to see the market change, the policy change, and all that is wider and deeper. The key thing is that you have to react faster than before. To be agile, you have to redefine your what we call the 4Ps: What products are you going to produce, what pricing you’re going to offer, how are you going to promote them – is it going to be through licencing, or using a KOL, and where are you going to find a new market?”

The P-word on everyone’s lips

Price is something that’s on everyone’s minds right now, added McIlvaine. 

“In the past few weeks, we’ve seen brands, including everyone from Shein to Hermes, announcing plans to raise prices in the US due to the cost of tariffs. So, essentially, passing on the cost of tariffs to consumers. The question remains for a lot of brands: Will consumers accept these higher prices or choose to reduce their spending? It’s interesting to consider which brands may be more impacted by these price increases than others.”

Wei concluded that AI will play a big part in controlling those prices and building efficiencies into sourcing and manufacturing processes, with many manufacturing companies now more advanced at trying to understand what’s going on in the market. 

“They have their own B to C portals, they are constantly searching on websites what’s going on, and what the hot-selling items are, the most popular styles and materials, and the pricing. They can use all that data to prepare a better assortment for the buyer,” Wei concluded. 

• Watch the recorded webinar now to hear the panel discuss the importance of business continuity planning in challenging times, and the danger of tariffs distracting focus on other major retail issues like the growing influence of Gen AI on business, and the rising power of Gen Z and silver consumers.  
• Discover how to transform your retail strategy with AI-powered product concept to commercialisation at NRF Asia 2025, happening from June 3-5 at Marina Bay Sands, Singapore. Visit Centric Software’s booth #1007 to explore cutting-edge retail innovations and book a live demo to see their solutions in action.