Fashion Needs a New Growth Playbook

For much of the last decade, fashion companies relied on scale, low sourcing costs and tactical promotions to grow profit. Today, these levers no longer provide the same advantage.

Costs along the value chain are rising, driven by tariffs — most notably US-imposed — together with inflation and supply chain disruptions. It is estimated that tariffs introduced in 2025 will drive price increases of 35 percent for apparel and 37 percent for leather goods in the short term. To add to this,…