A New Trade War, A New Branding Crisis?
The latest wave of U.S. tariffs and retaliatory measures has reignited global trade tensions and disrupted industries, from luxury goods to tech and consumer staples.
While much of the conversation naturally centres on supply chains, cost pressures, and geopolitical risks, another battle is unfolding as brands fight to maintain relevance in the face of shifting international market dynamics.
Those brands that redefine their value, reassert their relevance, and deepen emotional connections with consumers will emerge stronger, while those that fail to adapt risk becoming priced out, politically sidelined, or rendered irrelevant.
69% of global business leaders say geopolitical tensions have forced them to rethink international expansion plans. PwC 2024 CEO Survey.
A Global Shake-Up Beyond Tariffs
This is not just a U.S. problem, or even a U.S.-China one – its ripple effects are reshaping brand strategies worldwide. Rising costs and uncertainty in China are prompting shifts in manufacturing hubs, with Vietnam, Indonesia, and Thailand emerging as alternatives. Apple’s expansion into Vietnam signals a broader trend, influencing not just supply chains but also brand narratives around origin and identity.
Vietnam’s exports to the U.S. surged by 40% in 2023, driven by companies shifting supply chains away from China. Reuters, April 2024.
Finding Brand Resilience in a Fragmented Global Market
Brands that once thrived under a predictable global trade order must now rethink their positioning and audience priorities. Global brands have no choice but to evolve, while regional players seize the opportunity to flex their competitive advantage.
65% of global consumers say they prefer brands that adapt to local markets rather than those that maintain a standardized global approach. McKinsey Consumer Trends Report, 2024.
Brand Resilience will be key – the ability to pivot and maintain relevance in a world where traditional trade and consumer norms can no longer be taken for granted.
Companies that lean into brand equity, sharp storytelling, and reservoirs of customer loyalty as their frontline defence are more likely to absorb the hit and even grow stronger, while others will see their competitive edge disappear overnight, unable to justify rising costs or reposition themselves in a rapidly evolving, multi-modal global market where strategies must shift in real time.
Luxury & Heritage Brands – The Resilient Elite
Ultra-premium brands like Louis Vuitton, Rolex, and Ferrari remain well-positioned to withstand tariff impacts. Their appeal is rooted in scarcity, craftsmanship, and emotional exclusivity, which insulate them from price sensitivity. Even with tariffs, their affluent consumers are unlikely to walk away.
For mass-premium brands like Moët & Chandon and premium European wines, the outlook is more challenging. Their success hinges on aspirational appeal and accessibility, making them more vulnerable to price hikes. To remain competitive, they will need to double down on storytelling, reinforcing perceptions of heritage, craftsmanship, and authenticity to justify their premium.
Local Players on the Rise – Asia’s new Powerhouses
Southeast Asia continues to emerge not only as a production alternative but as a critical consumer market. Brands like Li-Ning and BYD from China are refocusing efforts on the region, building brand saliency and capturing market share from Western competitors that may become too expensive or politically sensitive. Their strategy centers on elevating product quality, adapting to local preferences, and generating cultural resonance for long-term growth.
BYD has been actively expanding its presence in Southeast Asia. In July 2024, the company opened its first electric vehicle plant in Thailand, marking a significant step in its regional growth strategy. Reuters.
Meanwhile, Southeast Asia’s growing middle class presents a wealth of opportunity for brands that understand local culture. Digital-first platforms like Shopee, Grab, and TikTok Shop continue to reshape retail, proving that success in Asia depends as much on cultural fluency as on marketing spend.
Southeast Asia’s e-commerce market is expected to hit $230 billion by 2025, driven by platforms like Shopee and TikTok Shop. Reuters.
The Branding Playbook for Survival
As brands navigate rising costs, shifting supply chains, and market fragmentation, those that thrive will be the ones that adapt and build brand resilience.
1. Local Adaptation Brands will double down on localisation, emphasising regional origins, supply chain transparency, and sustainability. Even as production remains global, marketing will shift to highlight the local relevance of products, tailoring messaging to regional preferences.
Nearly 60% of companies say they are increasing investment in localization strategies to maintain brand relevance amid geopolitical shifts. McKinsey, 2024.
2. Justifying the Premium with Storytelling To maintain consumer loyalty and justify price increases, brands must lean into compelling narratives of rarity, craftsmanship, relevance and cultural authenticity. Brands will need to brush up their backstory to better resonate with consumers, and justify their price tags, even in the face of tariffs.
88% of ultra-high-net-worth individuals (UHNWIs) say luxury brands’ origin and craftsmanship are key factors in purchase decisions. Knight Frank Wealth Report, 2024
3. Strategic Alliances & Retail Partnerships To navigate the complexities of tariffs, brands will more actively explore strategic partnerships, licensing arrangements, or regional manufacturing. Expanding into sizeable secondary markets of South and Southeast Asia can offer alternative pathways for growth and help mitigate the impact of trade disruptions.
4. Reinforcing Brand Purpose Brands with a clear mission and authenticity of purpose – whether around sustainability, ethical production, or cultural heritage – will have a significant advantage. Consumers will be more willing to pay for brands that stand for something meaningful and resonate with their values, especially in times of economic uncertainty.
78% of consumers say they prefer to buy from brands that align with their values, especially during economic downturns. Edelman Trust Barometer, 2024.
Conclusion: A Darwinian Moment for Brands in the Region
With erratic policymaking and shifting trade alliances likely to continue for the foreseeable future, unpredictability is the only certainty.
While branding alone cannot shield businesses from the twin threats of geopolitical instability and economic nationalism, it remains one of the few levers entirely within a company’s control to shape and deploy.
In this volatile environment, the companies that prosper will be those that invest in brand resilience– adapting to market shifts while fostering authentic, compelling connections with their audiences. Those that refine their narratives, localize messaging, build customer loyalty, and forge strategic partnerships will be best positioned to pivot and strengthen brand equity.
Now, more than ever, companies must act decisively to future-proof their brands in the face of rising uncertainty.