The Monthly Edit | April 2025

Fashion Business InsightsExplore AllThe Monthly Edit

29 Apr

10 Minute Read

As April draws to a close, we are powering into the heart of Q2 2025 — a crucial time to sharpen your focus, accelerate your momentum, and position your brand for a strong mid-year.

In this edition of The Monthly Edit, we bring you key updates and insights shaping the fashion business landscape, from new U.S. tariffs impacting Australian brands, to Meta’s advertising algorithm changes, and Mother’s Day activations.

Whether you are scaling your business, refining your marketing strategies, or building brand loyalty, we are here to support your journey every step of the way.

Author: Elizabeth Formosa | 29 April 25

Tune into The Monthly Edit recap below

Retail Landscape Update: May 2025

Navigating U.S. Tariff Volatility and Building Supply Chain Resilience

As we move into May 2025, significant global trade changes — including sweeping U.S. tariff increases on China-origin goods and the end of de minimis for China shipments — are reshaping the operating environment for Australian fashion brands.

In this edition of The Monthly Edit, we break down:

Key tariff updates impacting DTC and wholesale models
Practical margin and pricing strategies for brands selling to the U.S.
How sourcing diversification and fulfilment optimisation can protect your profitability
Critical considerations for Australian-made products and new sourcing markets
Why building agile, multi-region supply chains is now essential for growth

With volatility set to continue, brands that move quickly to reassess costs, strengthen operations, and maintain customer trust will be best positioned to thrive in 2025 and beyond.

What Australian Fashion Brands Need to Know

A 10% blanket tariff now applies to all imports into the U.S., including from Australia, Vietnam, India, and Indonesia.
China-origin goods face cumulative tariffs of up to 145% — dramatically increasing landed costs.
The de minimis exemption for China-origin shipments under USD $800 ends on 2 May 2025.
Vietnam, Indonesia, and India still qualify for de minimis — but are under review for future tariff changes.
Goods made in Australia will face only the 10% tariff (no additional China-specific penalties).
Brands must reassess landed costs, gross margins, and pricing strategies immediately.
Diversifying sourcing and optimising fulfilment pathways is now critical to protect profitability.
Brands are working extremely hard to find ways to mitigate the tariff impact on their businesses and their customers. Still, the consequence of the higher costs will, in most cases, mean higher prices for US consumers — and potentially fewer sales as a result during this reset.

Note: Tariff rates can vary based on specific product classifications. While 135% is a common cumulative rate for many apparel items, certain categories may be subject to higher tariffs. Always consult with a trade professional to determine the exact rates applicable to your products.

Key Reminders for Brands Shipping Goods to Australia First, Then Selling to the U.S.

Country of Origin Rules Still Apply:
Even if goods are warehoused in Australia, products manufactured in China (or Vietnam, Indonesia, India) are still treated as country-of-origin goods when entering the U.S., and will attract relevant tariffs.

De Minimis Threshold Changes:
The previous $800 USD duty-free threshold will be removed for China-origin goods from 2 May 2025, increasing duty costs for smaller customer orders shipped from China.
De minimis remains in place for Vietnam, Indonesia, and India — for now — but these markets are under review and future changes are expected.

Your Curated Checklist for Australian Brands:

Work with your freight forwarder or customs broker to model your full landed costs:
- For China-origin goods, factor both the new 10% blanket tariff and cumulative 125%–145% sector-specific tariffs, including Apparel and Footwear.
- For Vietnam, Indonesia, and India, model potential future tariff scenarios.
- Accurate landed cost modelling is essential to protect gross margins and guide future pricing, marketing, and sourcing decisions.
Please note: The tariff calculations provided throughout The Monthly Edit are illustrative only and intended to demonstrate the potential impact of recent changes. We strongly recommend consulting with your freight forwarder or customs broker to confirm the specific duties applicable to your product category before making any strategic business decisions.
If absorbing tariff impacts internally, revisit your product-level gross margins carefully.
Even small additional costs can significantly erode profitability — especially across a full product range.
For most China-origin fashion goods, cumulative U.S. tariffs now sit around 135%, though certain categories — like synthetic activewear or technical outerwear — can attract duties as high as 145%, depending on the product’s HTS code.
In this example, we will use the 135% cumulative tariff for illustration purposes.
Example – 10% Blanket Tariff (Non-China Origin Goods):
- Retail Price: $100 USD
- Tariff Applied: 10%
- Duty Payable: $10 USD
- Total Landed Cost: $110 USD
Explanation:
For goods manufactured outside China (e.g., Australia, Vietnam, India — currently), only the 10% blanket tariff applies. Brands must absorb or pass on this 10% increase in landed cost.
Example – 135% Cumulative Tariff (China-Origin Goods):
- Retail Price: $100 USD
- Tariff Applied: 135% (includes Section 301 tariff + new 10% blanket tariff)
- Duty Payable: $135 USD
- Total Landed Cost: $235 USD
For China-origin goods, the 135% tariff now includes both the historic Section 301 tariffs and the newly added 10% blanket tariff.

This more than doubles the landed cost compared to the retail value, making China-sourced products significantly less viable without major price restructuring or margin sacrifices.
Result:
Landing China-origin products in the U.S. more than doubles the retail value. Brands would be selling at a substantial loss unless significant operational, sourcing, or pricing adjustments are made.
Important Note:
While tariffs drive landed costs higher, the current strong AUD–USD exchange rate may partially soften pricing impacts. Brands should monitor currency movements carefully.
For DTC brands shipping direct to U.S. customers, raising retail prices alone is not a viable strategy — higher prices simply trigger higher tariff liabilities.
Instead, focus on:
- Preserving margins through supplier negotiations and sourcing efficiencies
  - Request quotes from suppliers in Australia, Vietnam, India, Bangladesh, or Cambodia.
- Building perceived value through loyalty programs, bundles, and free shipping thresholds
  - Example: Offer "Buy 2, Get 10% Off" or "Free Shipping over $150 USD."
- Communicating transparently about minor price adjustments while reinforcing brand values
  - Position price changes around value delivered, not just cost increases.
Passing tariff costs transparently to customers — combined with strong loyalty and brand connection strategies — is often the most sustainable path for DTC.
Explore fulfilment options that can reduce duty impacts:
U.S.-based 3PLs:
Brands using a U.S. third-party logistics provider (3PL) can often have duties calculated on the wholesale invoice value, not the retail price, significantly reducing duty exposure.
Example: Comparing Two Selling Models for Australian Brands in the U.S, using 135% cumulative tariff as an example.
Australian Brand DTC example:
- Retail Price: $100 USD
- Wholesale Value: N/A
- Tariff Rate (135%): $135 USD
- Total Landed Cost: $235 USD
Australian Brand via U.S. 3PL (Wholesale Model) example:
- Retail Price: $100 USD
- Wholesale Value: $50 USD
- Blanket Tariff (10%): $5 USD
- Section 301 Tariff (~125% additional): $62.50 USD
- Total Duty: $67.50 USD
- Total Landed Cost: $117.50 USD
Key Considerations:
U.S. 3PL models work best for brands with growing order volumes and must be weighed against warehousing and distribution costs.
Consolidate shipments to reduce per-unit shipping and customs clearance fees.
Now more than ever, brands must strategically diversify their supply chains:
Evaluate Suppliers in Australia
- Australian-made goods still attract the 10% blanket U.S. tariff but are exempt from the 125%–145% China-origin tariffs.
- Opportunity: Australian-made products are now more competitive than Chinese-made goods for U.S. DTC sales while these tariffs are in place.
Example: Comparing U.S. Tariffs on Australian vs. China-Made Products
Australian-Made Product example:
- Retail Price: $100 USD
- Applicable U.S. Tariff: 10%
- Duty Payable: $10 USD
- Total Landed Cost: $110 USD
China-Made Product example:
- Retail Price: $100 USD
- Applicable U.S. Tariff: 135%
- Duty Payable: $135 USD
- Total Landed Cost: $235 USD
Explore Opportunities in Vietnam, India, Bangladesh, Cambodia
- These markets still benefit from lower tariffs but are under review.
- It’s smart to explore alternatives now — but delay major commitments until U.S. policy stabilises.
Each country offers sourcing advantages:
Vietnam: Technical apparel, mid-range apparel, activewear, Australian Cotton programs and basics
India: Natural fabrics, artisan textiles, detailed trims, cutwork, and embellishments
Bangladesh: Basics, denim, high-volume value apparel
Cambodia: Mid-range fashion apparel, growing specialty manufacturing capabilities
Conduct a Total Cost Analysis
When evaluating new suppliers, model key factors such as:
- Freight and logistics costs
- Lead times and customs clearance
- Manufacturing quality and compliance
- Long-term scalability and risk diversification
Strategic Note:
While China continues to play a vital role in apparel production and large-scale manufacturing, it’s important for Australian fashion brands to assess whether over-reliance on any single sourcing market — especially one now facing elevated tariffs — poses a long-term risk.
Multi-region sourcing strategies are no longer just a “nice to have” — they’re fast becoming essential for building operational resilience and maintaining competitive advantage in a volatile global trade environment.
We fully acknowledge that shifting supply chains is no small task. Many brands we work with have built trusted partnerships in China over 10+ years — with reliable quality, consistency, and deep relationships that can't be easily replaced.
However, diversification doesn't mean abandoning China — it means complementing your core supply base with additional manufacturing options in regions like Australia, Vietnam, India, Bangladesh, or Cambodia. This can create much-needed flexibility, mitigate risk, and open doors to new cost structures or trade benefits.
Start by identifying a small product category or capsule range you can test elsewhere, and build from there. This is a long-term strategic move — not a quick fix — but it will future-proof your brand in an increasingly unpredictable landscape.
Tariff volatility is now a permanent feature of global trade for fashion brands selling into the U.S.
Brands must move quickly to:
- Understand their true landed cost and margin impacts
- Protect gross margins through operational excellence
- Communicate clearly with supply chain partners, customers, and stakeholders
“Preparation, flexibility, and a customer-first mindset will be critical to navigating the next phase — and turning disruption into competitive advantage.”
Important Disclaimer:
While this Monthly Edit reflects the best available information as of 29 April 2025, tariff rates, trade agreements, and U.S. customs rules are subject to rapid change.
We strongly recommend working closely with your customs broker, freight forwarder, and legal or trade experts to validate all current tariff impacts before making any pricing, sourcing, or fulfilment decisions.

Beyond global trade shifts, major digital marketing platform changes are also reshaping how brands acquire and engage customers.

Meta’s 2025 Advertising Overhaul: What eCommerce Fashion Brands Must Know

Meta’s 2025 Advertising Overhaul: What’s Changed

Meta has significantly revamped its advertising ecosystem in 2025, introducing AI-driven automation and new platforms to enhance ad performance and reach.

Key updates include:

AI-Powered Advantage+ Campaigns: Meta’s Advantage+ suite now automates audience targeting, budget allocation, and creative optimisation — reducing manual control but improving efficiency.
Launch of the Andromeda Engine: A powerful AI infrastructure that analyses vast user data to deliver more relevant ads and higher conversion potential. Andromeda is a deep learning retrieval engine designed to improve ad personalisation and performance by leveraging advanced neural networks.
Expansion of Advertising to Threads: Threads now allows global advertising, creating new opportunities to reach growing audiences. This rollout is being conducted in phases, starting with select markets.
Stricter Targeting Regulations: New restrictions around employment, housing, and credit categories — brands must ensure compliance or risk ad disapprovals.
Meta’s focus is clear: less manual control, more AI-driven automation, and faster campaign cycles.

Pros and Cons: Meta’s 2025 Advertising Overhaul

Pros

+ Faster campaign setup with Advantage+ automation
+ Broader multi-platform reach, including Threads
+ AI dynamically optimises creative variations
+ Improved conversion rates for warm audiences through predictive targeting
+ Lower cost per acquisition (CPA) possible once AI is fully trained
+ New ad formats automatically diversified across platforms
+ Short-form video and UGC content now perform exceptionally well

Cons

+ Less manual control over targeting and budget distribution
+ Cold audience acquisition is becoming more expensive
+ Creative fatigue requires faster content refresh cycles
+ Black-box AI limits transparency on why campaigns succeed or fail
+ Higher upfront testing budgets needed to optimise effectively
+ Harder to control exact ad placements and formats
+ Brands without strong creative assets will struggle to compete

Action Plan: Adapting to Meta’s New Advertising Landscape

Here’s how eCommerce fashion brands can adapt:

Leverage AI tools carefully: Use Advantage+ for efficiency, but continue monitoring and manually optimising campaign performance.
Diversify advertising channels: Explore TikTok, Pinterest, YouTube, and invest heavily in building owned marketing channels such as email and SMS.
Invest in stronger creative: High-performing short-form video, authentic storytelling, and lifestyle-driven content will define success.
Strengthen compliance: Stay updated with Meta’s targeting rules to avoid campaign disruptions or shutdowns.
Prioritise your owned channels: Build direct connections through loyalty programs, email databases, and VIP communities — these assets become even more valuable as paid ads become more volatile.

What This Means for Your eCommerce Business

Less manual control: AI will make optimisation decisions automatically — strong creative and brand positioning are more critical than ever.
Higher acquisition costs for cold audiences: Loyalty programs, retention strategies, and high-AOV (average order value) bundles will offset rising ad costs.
Faster campaign cycles: Daily ROAS monitoring and frequent creative refreshes are essential.
Diversification is critical: Brands that build an omnichannel acquisition strategy beyond Meta will maintain stronger growth into Q3.
Creative will define success: Authentic video-first content, founder-led storytelling, and real-time engagement will be key differentiators.

In short:
AI-driven advertising now demands stronger content, faster optimisation, deeper loyalty, and smarter acquisition strategies. It’s time to adapt, stay agile, and ensure your marketing team or agency partners are fully aligned with these changes to keep your business performing at its best.

Want to learn more?

If you would like a deeper dive into how to navigate Meta’s new advertising environment, our friends at eCommerce Equation are running a dedicated workshop.

Attending Jay Wright's "Meta Ads: The AI Reset" workshop could provide valuable, in-depth insights and practical strategies to align your brand's advertising with the latest best practices.

It is an excellent opportunity to learn directly from industry experts who are at the forefront of these changes.

Staying informed across multiple expert perspectives is essential in today’s fast-moving digital landscape.

Mother’s Day 2025: Key Sales Driver – Last-Minute Campaign Strategies

Image: “The Best 51 Mother's Day Email Examples in 2025” via Really Good Emails

Mother’s Day remains one of the biggest revenue opportunities of the year for Australian fashion, accessories, beauty, and lifestyle brands.

With the day fast approaching on Sunday, 11 May 2025, brands should now be fully activating and optimising their campaigns.

Why It Matters:

Mother’s Day is a proven sales driver — but competition is high and consumers are seeking meaningful, value-driven purchases.
Clear messaging, emotional connection, and strategic offers are critical to maximising results.

Actionable Strategies to Maximise Last-Minute Sales:

Curate best-sellers into limited-edition gift packs, offer "Spend & Save" promotions (e.g., Spend $200, Save 20%), or run 24–48 hour flash sales on top gift picks.

These strategies drive urgency, increase average order value, and make purchasing easy for time-poor shoppers.
Promote gift cards heavily as a convenient, flexible solution for last-minute shoppers. Highlight fast digital delivery options and customisation (e.g., personal messages).
Not everyone will be gifting — many customers buy for themselves during Mother’s Day campaigns.

Create "Treat Yourself" messaging, exclusive discounts, or bundles that invite customers to indulge in self-care and personal celebration.
Clearly communicate final order deadlines and shipping cut-offs. Pivot messaging towards e-Gift Cards and local pickup options once shipping windows close.
Engage micro- and macro-influencers to showcase curated gift picks, brand storytelling, mother and daughter outfit inspo, and last-minute shopping ideas.
Focus on the emotional value of gifting — gratitude, love, appreciation, connection — in your emails, socials, and ads.
Utilise owned channels heavily. Final reminder SMS and last-chance emails often deliver the highest ROI during the last week of the Mother’s Day sales period.
Offer handwritten notes, premium wrapping, free express shipping upgrades, or bonus gifts to elevate the customer experience and encourage higher cart values.
Mother’s Day can be a sensitive time for many.

Consider adding an option to opt out of Mother’s Day communications in your next email or SMS campaign.

Simple messaging such as:
"We understand this time of year can be difficult. If you prefer not to receive Mother’s Day communications, you can opt out here."
This approach builds customer trust, loyalty, and brand care — and is increasingly expected by modern, conscious consumers.

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Podcast Feature of the Month

Embedding Sustainability Throughout the Business – with Rebekka Carey-Smith, Head of Sustainability at THE ICONIC

In one of our most insightful episodes on sustainability yet, we sat down with Rebekka Carey-Smith, Head of Sustainability at THE ICONIC, to dive deep into how one of Australia’s leading fashion platforms is embedding sustainability at every level of the business.

Key Insights from the Episode:

Rebekka shares why sustainability can no longer sit in a silo — it must be integrated across every function, from product development to marketing, logistics, and beyond.
THE ICONIC is committed to ambitious carbon footprint reduction goals, with science-based methodologies informing their Scope 1, 2, and 3 emissions initiatives.
From transitioning to renewable energy and increasing the use of preferred fibres in own-brand collections, to shifting freight practices (air to sea), THE ICONIC is making measurable, high-impact changes.
Rebekka explores how initiatives like resale partnerships, circular fashion pilots, and transparent brand ratings are empowering customers to make more informed, conscious choices.
Rebekka shares practical advice for founders and businesses looking to embed sustainability from day one — focusing on progress, transparency, and collaboration over perfection.

Why You Should Listen:
Whether you're just beginning your sustainability journey or looking to deepen your impact, this episode offers real-world insights into how brands can meaningfully evolve to meet both consumer expectations and environmental imperatives.

Find us on Spotify, Apple Podcasts, and wherever you tune in.

🎧 Tune in to Episode 114 now: Listen Here

Splash Sydney

Dates: 12–13 May 2025
Location: Walsh Bay Arts Precinct, Pier 2/3, Sydney
Australia’s first international fashion trade show, Splash Sydney, will showcase Resort and High Summer collections from both local and global brands. This event aims to connect fashion brands with influential buyers, media, and industry leaders from around the world.

Learn more

The Atelier powered by Splash

Dates: 14–15 May 2025
Location: Carriageworks, Sydney
In partnership with AFC Australian Fashion Week, The Atelier offers an exclusive trade showroom focusing on contemporary fashion brands, bridging the gap between runway and commercial opportunities.

Learn more

Australian Fashion Week (AFW)

Dates: 12–16 May 2025
Location: Carriageworks and various venues across Sydney
AFW 2025, presented by the Australian Fashion Council, will feature a diverse lineup of designers, including both established names and emerging talents. The event will also introduce "The Studio," a new experience open to registered members of the public.

Learn more

Retail Fest 2025

Dates: 28–30 May 2025
Location: Gold Coast Convention and Exhibition Centre
Retail Fest brings together retailers, industry experts, and solution providers to discuss trends, challenges, and innovations in the retail sector. The event offers a dynamic program designed to empower retailers with actionable insights and networking opportunities.

Learn more

Podcasts & Books to Elevate Your Business

**Lives of Tomorrow**

In this episode of Lives of Tomorrow, WGSN’s CEO, Carla Buzasi, and Head of Events and Marketing, Cassandra Napoli, discuss the implications of global trade uncertainty on supply chains, consumer behaviour, and business strategies.
They explore how tariffs are affecting pricing, the potential for more sustainable practices in the fashion industry, and the rise of resale markets. From the impact of marketing during economic volatility to balancing globalisation and localism, learn how to understand consumer emotions and adapt business models to navigate complex changes.

Tune into the Podcast

**Inspired by a Vogue Feature on** **Anine Bing, we went straight out and bought** **Tom Ford 002**
This stunning slipcased volume showcases Tom Ford's iconic designs, featuring top models like Cara Delevingne, Gigi Hadid, and Joan Smalls. Celebrated by the CFDA and *Time* magazine, Ford’s influence spans fashion and Hollywood, with A-list fans gracing his runways and campaigns. A must-have collector’s piece for fashion and design lovers.

get the book

**Season 6 of @fashionbusinessmindset**

We’re back with another powerful season, bringing you insightful conversations with industry thought leaders, innovators, and change-makers.
This season, we’ve featured inspiring guests including:
- Rebekka Carey-Smith – Head of Sustainability at *THE ICONIC*
- Jacklyn Rivera – Head of Product at *Commonry*
- Jenny Nakkan – Founder of *Splash Sydney* and *Elevate Wholesale Agency*
Each episode is packed with real-world insights, practical strategies, and future-focused conversations to help you build, grow, and lead in today’s fashion industry.

TUNE IN NOW

Tap into Our Continued Partnership with WGSN!

We’re thrilled to embark on our sixth year of partnership with WGSN, the #1 global trend forecasting and analytics platform. At Fashion Equipped, we are passionate about empowering startups and growing businesses by providing access to this cutting-edge resource. Combined with our tailored programs, mentoring, and consulting services, these invaluable tools give our clients a competitive edge, helping them not just launch but scale their fashion businesses successfully.

In today's fast-paced and data-driven fashion industry, staying ahead of trends is critical. WGSN delivers global insights and future trends that can transform your business, ensuring you thrive in this ever-evolving landscape.

This is a unique and invaluable opportunity to elevate your business and position yourself as a leading brand in the industry.

Contact Elizabeth directly at elizabeth@fashionequipped.com.au to discover how WGSN can give your business an immediate advantage.

CONTACT ELIZABETH

Work With Us in 2025

Are you ready to elevate your fashion business this year?

Whether you’re launching, scaling, or evolving your brand, our signature consulting offer – The Fashion Business Growth Roadmap – is designed to give you the structure, strategy, and support you need to move forward with confidence.

From brand elevation and financial optimisation to product strategy, marketing and scaling, we tailor every step to your unique goals.