24/04/2025
How will the Trade war affect online sales of spectacles?
The ongoing trade war is significantly impacting the online sales of spectacles through a complex interplay of increased costs, potential supply chain disruptions, and evolving consumer behavior. Here's a breakdown of the key effects:
Increased Costs and Prices:
Higher Tariffs on Imports: The United States has imposed and increased tariffs on goods imported from various countries, particularly China, a major global manufacturer of spectacle frames and lenses. As of April 2025, the combined tariff rates on optical products from China have risen dramatically. For instance, plastic eyeglass frames, complete eyeglasses, reading glasses, safety glasses, and goggles now face a combined tariff of approximately 155%. Sunglasses have a slightly lower rate of 154.5%. Optical accessories and manufacturing equipment also face substantial increases, ranging from 170% to 190%.
Reciprocal Tariffs: Other countries, including Canada and Mexico, have also implemented reciprocal tariffs on goods imported from the U.S. While some optical products might be exempt under trade agreements like the USMCA, tariffs on materials like steel and aluminum (used in some frame components) can still increase manufacturing costs.
Passing Costs to Consumers: Importers and distributors of spectacles will likely pass these increased costs on to consumers, leading to higher prices for spectacles purchased online. This could affect price-sensitive buyers and potentially reduce the volume of online sales. Industry analysis suggests that consumers are already becoming more cost-conscious in their eyewear purchases.
Supply Chain Disruptions:
Reliance on China: China is a dominant player in the global eyewear market, being the largest source of eyeglass frames and a significant source of lenses. High tariffs on Chinese imports can disrupt the supply chain, potentially leading to delays and shortages of certain styles or materials available for online purchase.
Diversification Challenges: While some companies might look to diversify their manufacturing to other countries to avoid tariffs, this shift takes time and may lead to short-term supply fluctuations and increased freight costs as companies try to expedite shipments before new tariffs take effect.
Impact on Online Retailers:
Direct-to-Consumer (D2C) Brands: Online D2C eyewear brands that rely heavily on direct imports from China might be particularly vulnerable as they may not have the scale to absorb significant tariff increases compared to larger retailers with more diversified supply chains. This could force them to raise prices more noticeably.
Increased Scrutiny and Compliance: Online retailers need to be more vigilant about the origin of their products to ensure compliance with evolving tariff regulations, adding complexity to their operations.
Potential Shift in Consumer Behavior: Higher online prices due to tariffs might drive some consumers back to brick-and-mortar stores, especially if they perceive the price difference to be significant or if they prioritize trying on frames before purchasing. However, some Chinese manufacturers are attempting to bypass US retailers by selling directly to consumers online via platforms like TikTok, which could offer alternative purchasing options but also raises concerns about product authenticity.
Overall Market Dynamics:
Slower Growth: Industry experts anticipate that the trade war and associated tariffs will negatively impact the growth of the optical industry due to increased costs and uncertainty.
Focus on Value: Consumers may shift towards purchasing more budget-friendly eyewear options, potentially affecting online retailers specializing in premium or designer brands if they significantly increase prices.
Evolving Online Sales Strategies: Online retailers might need to adapt by exploring alternative sourcing, negotiating with suppliers, or adjusting their pricing strategies to remain competitive in a tariff-affected market. Some may focus on value propositions or explore different product categories less affected by tariffs.
In conclusion, the trade war is expected to make online spectacles more expensive due to tariffs on imported components and finished products. It may also lead to supply chain complexities and shifts in consumer purchasing behavior, requiring online eyewear retailers to navigate a challenging and evolving market landscape.
