Source: GlobalData
Navigating Trump’s tariffs and social media key strategic priorities for retailers in 2025, says GlobalData
Posted in Retail
2025 will present significant challenges for retailers globally, as geopolitical issues and the disruptive force of AI continue, with the added challenge of navigating the impacts of the Trump administration, says GlobalData, a leading data and analytics company.
GlobalData’s latest report, “Strategic Intelligence: Top Themes in Retail and Apparel 2025,” reveals that international trade and social media will be among the major themes impacting the retail sector in 2025.
Sophie Mitchell, Retail Analyst at GlobalData, comments: “Trump’s proposed tariffs and tougher import tax regulations will cause major issues for retailers, especially those who operate highly globalized supply chains, adding significant import costs that will ultimately be passed on to the consumer. Solutions to this, including diversifying or localizing supply chains, will not happen overnight and come with their own costs, such as the higher cost of labor, which could again be passed on to consumers through higher retail prices.
“Shein and Temu could be two of the biggest retailers to be hit by the measures, as for instance, Europe could also impose retaliatory tariffs to ensure it does not become the primary destination for Chinese goods as they are displaced from the US.”
Something Trump has immediately taken action on is negotiations with China over TikTok. Trump’s pause on the ban on TikTok in the US indicates that he intends to reach a deal with its Chinese owner. However, the brief ban and prior noise around its implications have highlighted how essential a social media strategy centered around short-form video content with shoppable links, particularly on TikTok, is to driving retailers’ sales.
GlobalData’s global survey of respondents in seven countries (US, France, Germany, Italy, Spain, China, and the UK) conducted in December 2023 found that 33.5% of consumers use TikTok (excluding China), making it the fourth most used social media app after Facebook, Instagram, and YouTube, overtaking X/Twitter*.
Mitchell continues: “TikTok Shop provides a significant opportunity for retailers to convert usage and content consumption into sales, with consumers being able to discover and purchase products on one platform, whereas previously social content was primarily a brand awareness raising exercise.”
TikTok has been particularly instrumental for retailers as it has allowed for the growth of micro-influencers, larger influencers, user-generated content, and brand/ retailer-generated content all in one platform due to the way the algorithm works. Retailers can take a 360-degree strategic approach to targeting consumers on the platform, with a combination of paid ads, organic reviews, and brand campaigns, convincing them to buy a product that they may not even have to leave the app to purchase.
Mitchell concludes: “An effective social media strategy is essential for retailers in 2025, and should a permanent ban on TikTok come into effect in the US, retailers should pivot to other social media platforms that offer multi-pronged approaches to marketing and the ability to complete the shopping journey in-app, as TikTok’s efficacy has been proven.”
*GlobalData’s 2023/24 Global Survey was conducted in December 2023 with 1,000 consumers per country