JOOR CEO Says Fashion Industry at a Crossroads With Tariffs and Changing Consumer Dynamics

Talk about business uncertainty: Fashion wholesale is a business that lives with the constant fear of changing styles, fickle consumer tastes and a retail base that’s made up of department stores at one end of the spectrum and independent boutiques at the other. And that was before the geoeconomic complexity faced by the global connected economy right now.

Now a whole new set of challenges and opportunities have arrived, with threats of tariffs causing uncertainty while traditional retail channels face mounting payment issues. Despite these headwinds, JOOR, a B2B wholesale platform that has processed $100 billion in transactions, reports some encouraging signs for the industry alongside significant shifts in retailer dynamics.

But the big story is the specter of impending tariffs. It has become a primary concern for fashion brands, though many are hesitant to make proactive changes to their supply chains. According to JOOR CEO Kristin Savilia, uncertainty around tariffs is creating resistance and concerns throughout the industry. Uncertainty surrounding tariffs has started to trickle down to the consumer level as well. According to recent PYMNTS Intelligence data, more than half of consumers are worried about rising prices due to tariffs, with 78% expecting higher prices and supply chain disruptions that could affect product availability.

“The majority of [brands] are not being very proactive, if I’m being honest,” Savilia told Karen Webster recently. “I think they’re taking a wait-and-see approach. But it’s a fact that uncertainty is sometimes worse than the actual [implementation] of what happens.”

While the first round of tariffs affecting Mexico and Canada won’t significantly impact most fashion brands on JOOR’s platform, potential China tariffs represent a much more serious threat. Savilia notes that brands across all scales — from Walmart to luxury conglomerate LVMH — are expressing concern about disruptions to Chinese manufacturing and sourcing relationships.

Some industry executives believe they can pass increased costs to consumers through price increases, but Savilia disagrees with this strategy. “We saw in our industry lots of price increases in ’22 and ’23, and we actually saw the leveling of that in ’24,” she said. “I do not believe that price increases are going to be the answer.”

Data from JOOR’s platform already shows evidence of consumer price sensitivity, with retailers shifting their buying patterns toward lower-priced items. “The $1000+ handbag is way down, but yet the $250 to $500 handbag category up,” Savilia observed, indicating a notable change in retail purchasing strategy.

Department Store Payment Issues

Beyond tariffs, fashion brands are grappling with payment delays from major department store groups, creating significant cash flow challenges. Savilia indicates this has become a universal concern among JOOR’s brand partners.

“I have not spoken to a brand that has not brought up concerns about [payment issues],” Savilia noted. The situation worsened, she said, when a major luxury department store group announced a restructured payment schedule that would begin in July and be distributed over twelve months.

“Great that they’re going to get paid, but to start payments in July and then divide it by 12, it’s just really a tough nut for (fashion suppliers),” Savilia said. “Part of the messaging also was ‘we’re gonna do less and have less brands. So, we plan on cutting 25% of you.’ That’s a very threatening message.”

The announcement has accelerated brands’ interest in diversifying their retail channels, particularly toward independent retailers with more reliable payment histories.

New Data for Better Matching

To address these changing dynamics, JOOR has developed its Discover platform, which uses transactional data to create better connections between brands and appropriate retail partners.

Unlike typical B2B marketplaces that simply allow retailers to shop brands, JOOR Discover functions as a prospecting tool for brands to identify promising retail partnerships. The platform provides comprehensive retailer data including store aesthetics, existing brand relationships, price points, categories, and even payment reliability.

“By enabling the brand, a digital way to go in and be matched with retailers in any region of the world, that would be a good fit for them. This is new,” Savilia said. “We’re actually acting as a consultancy almost for these guys with data.”

JOOR’s data shows a significant shift toward independent retailers, which grew from 47% to 59% of the platform’s gross merchandise value (GMV) by the end of 2024. Recent GMV increases in Q3 and Q4 were “entirely driven by the independent retailers,” Savilia reported, while “department stores actually went down.”

The platform’s matching capabilities have proven particularly effective, with connected brands and retailers achieving a 78% repeat business rate — exceeding the industry average of 20-30%. Additionally, these partnerships typically generate an average of five orders within the first year of connection.

“For these brands, if they feel they need a more secure place to place their goods, where they’re going to get paid in a timely fashion, the independent retailer channel is growing and opening up,” Savilia noted.

Cautious Optimism Amid Industry Transformation

Despite challenges, Savilia entered 2025 with optimism following two consecutive quarters of GMV growth on the JOOR platform. Q3 2024 saw a modest 2% increase, followed by a more robust 9% rise in Q4.

The luxury segment has shown notable changes, Savilia said, with brands forgoing price increases for the first time in three years as consumer resistance to ever-higher price points finally materialized. While certain ultra-luxury brands like Hermès remain “immune” to price sensitivity, most luxury and contemporary brands have reached pricing thresholds that limit further increases.

As the industry navigates these complex waters, Savilia offers a clear perspective on the path forward for wholesale fashion: “I have this love for the department store, but it’s definitely a different world and the adaptation there just doesn’t seem to be happening as quickly as it needs to happen.”