Navigating Turbulence in the Active Lifestyle Industry

Top takeaways:

Tariff volatility is reshaping costs and margins.
Brands are facing 10–35% hikes across key production countries. A $250 wetsuit could soon retail for $330+. Companies must now pay U.S. Customs every 30 days—forcing painful tradeoffs in marketing, staffing, and innovation.

Winning supply chain strategies include:

• Dual sourcing (e.g., China and Europe/SE Asia) for agility
• Cutting SKU counts to focus on hero products
• Prioritizing LDP/DDP vendors to reduce landed costs
• Using bonded warehouses (though many are full)
• Consolidating around trusted suppliers vs. chasing price
• Planning for longer lead times from non-China factories
• Building internal "bat-phone" systems for real-time risk tracking

Retailers are prioritizing flexibility and doubling down on communication with brand partners. Many are walking the tightrope between preserving margin and delivering value to price-sensitive consumers.

The need for internal transparency is clear. Execs are holding more town halls, surveys, and team check-ins to steady the ship in turbulent waters.

It’s a moment to protect brand equity, innovate with intent, and build partnerships that can weather uncertainty.