Apparel Manufacturers NAICS 3152

Sep 25, 2025 - Apparel Industry Shifts Toward Full-Price Sales Strategy

• According to a Reuters report, US apparel retailers such as Levi’s, Aritzia, Ralph Lauren, and Under Armour are increasingly testing full-price strategies, driven by resilient demand from affluent consumers. Despite rising tariffs and economic uncertainty, wealthier shoppers, buoyed by stock market gains and low debt, continue spending, with minimal resistance to price hikes. Retailers are leveraging consumer data to fine-tune promotions regionally, preserving margins while limiting broad discounts. This shift reflects a strategic pivot toward high-income, loyal customer bases and suggests a reduced reliance on traditional markdown cycles. The trend signals a potential recalibration of pricing models. Manufacturers may benefit from more stable production planning, reduced pressure to overproduce for discounting, and stronger brand positioning. It also underscores the importance of aligning product development and marketing with premium consumer segments and leveraging data analytics to support dynamic pricing strategies.
• Apparel, Leather & Allied Products manufacturing is one of the seven manufacturing industries reporting growth in August’s Manufacturing ISM Report on Business. Apparel, Leather & Allied Products manufacturers reported increases in new orders and inventories while reporting lower employment. Other industries reporting growth were Textile Mills; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Miscellaneous Manufacturing; and Primary Metal. Ten manufacturing industries reporting contraction during the period were Paper Products; Wood Products; Plastics & Rubber Products; Transportation Equipment; Furniture & Related Products; Machinery; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Chemical Products; and Fabricated Metal Products. Overall, economic activity in the manufacturing sector contracted for the sixth consecutive month in August, with the Manufacturing PMI registering 48.7%.

• An expansive bill signed into law by President Trump in July 2025 includes a provision to eliminate the de minimis exemption, heavily used by fast fashion and other e-commerce retailers, according to a report in Supply Chain Drive. The exemption had allowed imports under $800 to enter the US duty and tax free. While the change was slated to go into effect in 2027, the Wall Street Journal said the White House is ending the exemption as early as August 29, 2025. The new bill establishes a civil penalty for anyone trying to use de minimis entry in a way that violates any other provision of US customs law. Earlier this year, Trump had suspended the de minimis exemption for imports from China. The number of shipments entering the US using the exemption in the last four years increased from 637 million to over 1 billion per year.
• US consumer mood indicators have weakened, signaling potential headwinds for spending. The Conference Board’s Consumer Confidence Index fell 1.3 points in August 2025, with the decline driven by younger consumers under 35, while confidence among those over 55 improved. Meanwhile, the University of Michigan’s Consumer Sentiment Index slipped to 55.4 in early September from 58.2 in August, down 21% year over year. Inflation expectations held steady, but persistent worries about prices and tariff impacts remain. Consumer sentiment and confidence are leading indicators of discretionary spending, which drives two-thirds of U.S. economic activity. A continued slump suggests households may curb purchases and delay big-ticket decisions, raising risks for retailers, service providers, and the broader economy.