Tariffs x Beauty Industry — Easily One of Our Least Favorite Collabs of 2025
Experts predict that the recent tariffs could lead to an average price increase of 3-7% on imported beauty products in the coming months.
As Cosmetics Business recently highlighted, beauty brands are increasingly facing the tough decision of escalating prices to absorb these added costs. Even giants like P&G are openly discussing the significant impacts of these tariffs on their cost of goods, potentially affecting consumer pricing strategies across their vast portfolio, as reported by Beauty Packaging.
And as Business of Fashion shared in their analysis of the impact of tariffs on the South Korean beauty industry brands saw a 15% dip in export growth in the quarter following major tariff implementations by key trading partners. Unfortunately, it’s not just finished goods; ingredient suppliers like Croda have announced a surcharge of up to 5% on certain cosmetics and personal care ingredients due to U.S. tariffs (source: Global Cosmetics News). This upstream cost pressure will inevitably trickle down to consumers and greatly impact consumer behavior in the upcoming months.
While this may sound doom and gloom, it doesn’t have to be.
Communications Strategy Becomes Your Map to Navigating the Tariff Terrain
When costs are rising and consumers are more price sensitive, one thing is crystal clear: the strength of your relationship with your consumers is now your most valuable asset.
A recent study shows that 87% of consumers are willing to pay a premium for brands they trust (source: Salsify’s 2025 Consumer Research Report). This statistic highlights the tangible value of a strong communications strategy, especially when price becomes a more significant factor.
Why Consumer Loyalty is Your Brand’s Best Defense
- Loyalty Over Price Sensitivity: In an environment where prices may rise, consumers who feel a strong affinity for your brand are significantly less likely to switch based solely on a marginal price difference. Loyal customers provide significant long-term value
- Word-of-Mouth Amplification: Loyal customers become your most effective (and free) marketing channel. Their positive reviews and recommendations can cut through the noise and influence potential new customers, helping to offset the challenges of a fluctuating market
- Resilience to Economic Headwinds: A deeply engaged customer base provides a crucial buffer against economic uncertainties. Brands with high consumer awareness and loyalty tend to experience less revenue volatility during economic downturns. Their connection to your brand transcends purely transactional considerations. The lesson learned after the 2008 financial crisis is that strong brands recovered nine times faster in terms of market value compared to weaker brands, according to an analysis by Kantar BrandZ.
- Opportunity for Value-Added Communication: Strong relationships provide a platform to communicate why prices might shift – not just as a cost increase, but as a reflection of global economic factors impacting the entire industry. Transparency builds trust and can mitigate negative perceptions. Consumers often feel a stronger connection to brands that are transparent about their pricing and sourcing
- Foundation for Innovation and Feedback: Engaged communities are more likely to provide valuable feedback on new products and services. This helps you innovate and tailor your offerings to their evolving needs, further strengthening their connection and willingness to support your brand
5 Ways Communications Teams Can Boost Consumer Loyalty
- Engage Like a Human on Social Platforms: Proactively engage with your audience on social media through meaningful conversations, interactive Q&A sessions, and user-generated content campaigns. This builds a sense of community and makes consumers feel heard and valued, fostering loyalty beyond the product itself
- Elevate Customer Experience Through Consistent Communication: Ensure seamless and personalized communication across all touchpoints, from initial inquiry to post-purchase follow-up. Helpful responses, personalized recommendations, and exclusive content for loyal customers demonstrate care and build stronger relationships
- Share Your Brand Story and Values Transparently: Consistently and clearly communicate your brand’s mission, values, and any ethical sourcing or sustainability practices across all communication channels. This creates an emotional connection, building loyalty based on shared principles, especially during times of economic uncertainty
- Create Exclusive Communication Channels for Loyalists: Develop dedicated communication channels like exclusive newsletters, a Substack, an Instagram broadcast channel, private Facebook groups, or early access programs to make loyal customers feel special and valued. This fosters a sense of belonging and strengthens their connection to your brand
- Actively Solicit, Listen and Respond to Feedback Across All Channels: Implement robust listening tools across social media, customer service interactions, and surveys. Publicly acknowledge and address feedback to show that you value your customers’ opinions and are committed to continuous improvement, building trust and loyalty
Ready to strengthen your brand’s bonds with consumers and navigate communication strategies? Contact us at RED@red-pr.com to explore data-driven approaches for building lasting loyalty.
TL;DR: Tariffs are likely to increase beauty product prices. Strategic communications focused on authentic engagement, consistent customer experience, transparent values, exclusive channels, and active listening are crucial for building tariff-resistant consumer loyalty.
