Value

It seems like, finally, everyone is catching up to DTC when it comes to tariffs.

While we’ve been dealing with the “t-word” for months now, consumers, larger brands are just now starting to talk about them:

• Proctor & Gamble said this week that it will likely raise prices on a quarter of its products to help offset $1B in tariff costs.

• Nike told investors last month that it would begin raising prices in the fall to mitigate tariff costs.

• Some car manufacturers—like Mazda—are messaging to consumers that existing inventory as being “unaffected” by tariffs.

And even the Conference Board, which polls US consumers for the Consumer Confidence Index, said that tariffs remain “top of mind,” despite consumer outlook leveling off and, in some instances, improving.

All this to say, everyone has priced tariffs into their collective consciousness.

What happens now, though, is something that we’re just seeing play out: According to Google Trends, searches containing “cheapest” are 2X the levels they were pre-Liberation Day and searches containing “best deal” are up 50% over the same time period.

This, it seems, goes back to our point from last week: If a value driver becomes the main discovery mechanism for new customers (versus a brand driver), the way in which we market to consumers may get flipped on its head. And that will make qualitative insights, UGC and voice of customer assets all the more valuable. The same can be said for loyalty programs, which (as we’ve previously discussed) become more popular in challenging economic times.

This, to me, is more of an opportunity for brands than a warning siren.

Our DTCCI index shows that consumers are planning to spend more right now. And while that might be them just pricing in tariffs, it’s still a good sign. They’re no longer planning to pull back.

But how you win those customers now may be changing. Value, it seems, is becoming a bigger driver. If that’s the case, a good portion of your marketing needs to be on justifying that value and making it believable.

And your existing customers are the best way to prove it.