Import costs are going through the roof in this volatile U.S.–China trade war, and the tariff turbulence is forcing fashion and retail companies to make tough choices on pricing, sourcing and inventory amid unprecedented cost volatility.

Amid these headwinds, price elasticity has become a critical tool for guiding strategy. Unlike price sensitivity, which reflects perception and is qualitative, price elasticity reflects behavior and is a quantifiable measure of how demand responds to price changes.

Understanding elasticity also helps retailers answer hard questions with clarity. Should a 10 percent cost increase be passed on—or will it cause demand to collapse? Which categories can support higher prices, and which risk losing volume? How does elasticity vary across product, consumer segments or economic environments? The key is marrying elasticity insights with market intelligence. By monitoring competitive shifts, watching for consumer strain and adjusting in real time, retail teams strike the right balance between price and profitability—while staying aligned with customer expectations.

Watch the webinar to learn: