Global fashion supply chains have always been a delicate balancing act, but in recent years, they’ve been in complete freefall. Between COVID-19 disruptions, shipping crises, and regulatory shake-ups, brands have been scrambling to maintain profit margins.
Then comes the tariff problem.
Fashion brands importing goods face constantly shifting trade policies, with tariffs cutting into their bottom lines. But at GEM, we help retailers use AI in tandem with Tariff Engineering—a strategy that legally reclassifies imported goods to minimize duty rates.
Take Lalaland.ai, an Amsterdam-based startup reshaping e-commerce by generating AI-powered virtual models. By reducing the need for international photo shoots and sample shipments, Lalaland is cutting logistics costs and minimizing cross-border trade complexities. Similarly, AI-driven material optimization tools, like those used by Browzwear, help brands tweak fiber compositions just enough to lower tariffs, all while maintaining quality.
A simple tweak—like adjusting the percentage of synthetic fibers in a blend—can reclassify a product into a lower tariff category, saving millions for retailers. AI makes these insights instantaneous, giving brands the agility they need to navigate global trade complexities.
For fashion retailers, it’s not just about designing great products anymore. It’s about designing smarter supply chains—and AI is the key.