Emily Lane, Bret Schnitker
February 17, 2026
Bret Schnitker 00:03
You don't need all these different layers, and so you can wear certain styles year round, and that reduces seasonal markdowns. I think modular design, like you just mentioned, sharing fabrics and details, I think they're leading the way.
Emily Lane 00:29
Welcome to Clothing Coulture, a fashion industry podcast at the intersection of technology and innovation. I'm Emily Lane
Bret Schnitker 00:36
and I'm Bret Schnitker. We speak with experts and disruptors who are moving the industry forward and discuss solutions to real industry challenges.
Emily Lane 00:45
Clothing Coulture is produced by Stars Design Group, a global design and production house with more than 30 years of experience. Fashion often exudes growth and glamor, but what happens when the economy slows down? Today, we're talking about why smart brands are rethinking their economics for 2026 and providing insights into how to implement these strategies for your business. Are you ready?
Bret Schnitker 01:15
Bret? Ready? Okay, I've had my bourbon eggnog,
Emily Lane 01:21
so we'll be sleeping before this is over. Okay? Well, before you fall asleep, let's dive right in. You know, there's been some speculation about things slowing down, a
Bret Schnitker 01:31
little bit like me. You mean, no play on age?
Emily Lane 01:37
Well, I'm thinking with regards to fashion brand, okay, good. Yes. What does a slower growth era really mean for a fashion brand? I mean, we think we know what this means, but let's, let's just start at the beginning.
Bret Schnitker 01:49
I think it means the old playbook of chasing volume and rapid expansion. It's not working anymore. Yeah, you know, I think brands can't rely on endless consumer demand, I don't think they can rely on cheap capital to fuel growth. I think success is going to come from protecting margins, tightening operations, making smarter bets, more calculated decisions. I think in a potentially slower growth era, efficiency and resilience is going to matter more than speed?
Emily Lane 02:23
Yeah, we talked a lot about that in our previous episode, of the kind of top things to be thinking about when moving into a new era. So this is really echoing on some advice you would you'd be given previously and
Bret Schnitker 02:35
just like the previous episode, yes, the ones that are going to thrive are the ones that are focusing on profitability, not just,
Emily Lane 02:42
yes, that does, that does align for sure. Yeah, how is consumer behavior shifting in response to, you know, kind of the economic uncertainty?
Bret Schnitker 02:56
I think consumers are being more intentional, you know, I think that's, it's not a negative. I think, you know, they're, they're buying fewer pieces. I think they're expecting higher quality. They want longer life from what they purchase. All of those are really good for our environment, by the way. They might cost a little bit more, the consumer may have to pay a little bit more, but there's less ending up in landfills. And so it's all positive. You know, I think price sensitivity is still real, but I think it's paired with the demand for value. So I think durability, transparency and trust. We've talked about this before. I think people are starting to say, not all, all everyone, but they are starting to say, Do I really need this? Yeah, you know, does this brand align with my values? And I think those shifts forces brands today to rethink everything from pricing to storytelling.
Emily Lane 03:56
Yeah, absolutely so thinking about pricing. You know, margin protection strategies are certainly important to be thinking about profitability matters more than volume. Why is margin health more critical than ever?
Bret Schnitker 04:11
Well, in a slower growth area or era, you know, time, moment in time, you can't really rely on volume to cover inefficiencies. I think every dollar counts, and the margin is what keeps the lights on, rising costs, which we're dealing with right now, materials, labor, logistics, tariffs, they're all squeezing profitability. Yes, so you know brands, if brands aren't monitoring margin at every level, they risk scaling themselves into trouble. And I think healthy margins gives you the flexibility to invest in innovation, and then in the worst case, weather, uncertainty or challenge.
Emily Lane 04:59
Yeah, there's. A lot of brands that have really gone public with the information that they're really struggling with margins due to tariffs and all of these challenges that we've been discussing throughout the year. So what are some practical steps that brands can make to protect their margins without sacrificing quality?
Bret Schnitker 05:20
An age old one, but one that's most difficult to really execute well, and technology is helping here is starting with smarter assortment planning.
Emily Lane 05:30
Boy, that's like the first conversation we have with any brand we do,
Bret Schnitker 05:34
yeah, yeah. And the podcast that we had earlier this year is helping in those decisions too, but with new technology there. But I think you know, you can do more on fewer SKUs. You don't have to have collections that are really wide. We have new buyers that think the more items, the more I will sell. And it's funny, when we do analysis, we realize that about 90% of volume, profitability and about 10% of the SKUs, right? Of course, still is super important, yeah, so I think they can run tighter collections. I think one key is if they can negotiate better terms with suppliers. And I think you want to look for multi source options to avoid price spikes, because there are a lot of reasons around the world why there would be price spikes. I think invest in demand forecasting. There's a lot of technologies out there for that. You want to reduce overproduction and markdowns kill you, so you want to reduce both of those things. I don't think you want to cut quality. I think the consumer is more focused on quality than ever. Focus on efficiency. You know, everyone loves shorter lead times. You should try, but that's a challenge we've talked about in previous episodes about digital sampling, you know, leaner operations, all of these things kind of save money without hurting the product.
Emily Lane 07:07
Yeah, I can understand that. You know, kind of looking back to the first part of the of your response to the question about smart assortment planning, I can see areas here too where decisions can be made to share fabrics and things of that nature, that, again, help protect that bottom line and do smart by the collection and, yeah, I can see also the importance for kind of keep keep your business. Keep your shopping around, keep your, you know, keep your options open with regards to protection, because, you know, you never know when something's gonna change the landscape, and you need to make a pivot. So sure, those are all great thoughts. Are there brands that you see that are really doing this?
Bret Schnitker 07:52
Well, yeah, I think, you know, one of the big things is that brands are embracing more seasonless collections, right? We talk about living in a climate controlled environment. And so you go from your heated or air conditioned car heated now It's damn cold out there today, but heated car to heated home. So you don't need all these different layers, and so you can wear certain styles year round, and that reduces seasonal markdowns. I think modular design, like you just mentioned, sharing fabrics and details, I think they're leading the way. And I think some mid market labels have shifted to smaller, more frequent drops. So as opposed to getting a glut of inventory, I think that reduces inventory risk. I think it's those, those smaller multiple drops, they also have a play for marketing, because they maintain kind of consumer excitement. New drop coming in. Come take a look at my site. Luxury houses are kind of doubling down on timeless pieces now too, which is interesting. Well, there's
Emily Lane 09:03
always a connection, it seems, between interior, you know, home, and fashion. Yeah, so often, yeah.
Bret Schnitker 09:11
And I think they're, they're focusing more on those versus fast trends, right? Because if you get caught with a fat, if you caught with a style, that's a fast trend, and the trend is over. Yeah, no. Price is cheap enough today, right? And I think all of those things are protecting margins, and then it also reinforces brand value today.
Emily Lane 09:40
You know, some of the things that I'm hearing you talk about, really weigh in on smart pricing strategy, strategies, inventory management. You know, you've talked about how overproduction can kill profitability. How should brands rethink pricing strategies in 2026
Bret Schnitker 09:55
Well, pricing can't just be about covering costs. It's got to. Reflect the perceived value. Many times, when we talk to different brands or designers, they've really undercut their own perceived value by putting items out too inexpensively. They've just done it to cover a cost so there's no buffer in it for profit to weather tough times or manage marketing dollars. And I think in 2026 consumers are going to be a little bit more price sensitive, but they're still going to be willing to pay for quality and transparency. I think you know brands, they're going to have to move away from aggressive discounting. Costs are going in the wrong direction for that, and so I think they're going to focus more on tiered pricing, limited drops, and clear storytelling about why the product costs what it does. And again, the goal is to protect margins and reinforce trust. And that's that's an interesting balancing act, but it's necessary.
Emily Lane 11:08
Data has got to be key when it comes to smarter inventory planning. Can you dive in a little bit there?
Bret Schnitker 11:15
Data is the difference between profit and markdowns brands that leverage historical sales trend analytics, real time demand. They can forecast more accurately. I think they avoid overproduction. And there's so many AI tools out there that can help predict which SKUs are going to perform when to replenish. You know, we talk about it a lot about reducing waste, but it frees up cash flow. I don't think today, inventory planning is guesswork, right? There were in old days, there was a lot of estimation, a lot of guesswork. Today, it's a science. It really is a science and supported well by technology.
Emily Lane 12:02
Yeah, you mentioned briefly a little bit about seasonless fashion. Is this really becoming a true solution that many brands are adopting today?
Bret Schnitker 12:12
I think it's more than a trend. I think it's a customer reality. And absolutely seasonless fashion is there, and I think it it's great for a retailer. I think it reduces the press pressure of rigid calendars. I think it minimizes markdown risk. I think it allows brands to design timely pieces that stay relevant longer. I think it's critical, if customers have tighter Pocket Books, buy less and they expect more value. We've talked about the whole thing about the smaller, more frequent drops that align with demand. You know, there is that balance between buying volume driving price down, but boy, those big, huge seasonal bets can get expensive.
Emily Lane 13:07
Yeah. You know, as a consumer of fashion, I definitely appreciate a seasonless item. So and my closet does too, yes, for sure, fewer things clouding it, right? So what does less
Bret Schnitker 13:23
you say fewer things in your
Emily Lane 13:24
closet? I know that might have
Bret Schnitker 13:28
Strike that. If we haven't done it, we need to strike that, because that talk about transparency and authenticity, you can't fit another thing in that closet.
Emily Lane 13:38
Okay, all right. So on that note, what does less but better look like in practice?
Bret Schnitker 13:46
That's not you. I think it means, I think it's kind of like me in a little bit of a way, right? You know, I have a uniform I kind of wear that. It means I'm focusing on fewer, higher quality pieces that deliver real value to the customer. If the customer is telling you in demand what they're looking at, make something last longer. You know, don't chase endless SKUs. Don't chase trend driven collections. Brands you know that do that, I think you're gonna be in for a tough ride. I think prioritize these
Emily Lane 14:27
timeless designs, better fabrication.
Bret Schnitker 14:30
Yes, yeah, I think so. I think this, this accomplishes a lot of what consumers out there want, reduction of waste. Yes. Bret, you know, we talked about it over and over again. You know, it protects margins, but also, I think it builds loyalty. Because, you know, a lot of us as consumers will find our favorite t shirt, oh, yeah, you fall in love with the fabric. And over again, they do a lot of business. You know, brands do a lot of business on that repeat business.
Emily Lane 14:58
Yeah, that's true. Yeah. Yeah, okay, so thinking about as a brand, communicating this, this elevated value that you're providing to a customer, this is probably a little bit more of a marketing challenge, but how do you communicate that without sounding elitist or like an inaccessible brand?
Bret Schnitker 15:17
Well, I think value is not expensive, right? Value means you're getting a lot for whatever price that you're paying. And so if you frame value around longevity and purpose and not exclusivity, which is kind of that artificial thing that many times we create in this business, you know, if you talk about craftsmanship, you talk about sustainability, you talk how versatile it is in your wardrobe. I think you know how the product fits in the customer's life and how it saves them money over time. We've done that a lot of time with uniform programs that we've built. Yeah, if you've got a really inexpensive garment, you're replacing it three to five times a year. What's the overall cost of that particular uniform piece? If you just build a uniform piece that's really, really nice and you replace it once every three years, that's value, the actual cost is less. And so I think you avoid jargon, you keep the message really relatable. The piece is designed to last, so you get to buy less and enjoy it more. I think today, this resonates a lot further than luxury buzzwords.
Emily Lane 16:31
Yeah, so does this trend favor luxury, or is this also? I mean, you've talked about how it can be in a mid level brand, but, you know, can it can a brand be as successful in a mid level range that a luxury can brand can be for thinking, you know, value and quality and what a brand can invest for in per style?
Bret Schnitker 16:57
I think value subjective, right? So I think it can work across the board. Luxury bands have always leaned on quality. Mid market brands can win by offering accessible pieces, pieces that are really accessible, that feel premium and design and durability. I think customers are willing now to pay a little bit more for something that lasts and so that can happen at all levels, even if they're budget conscious, yeah, I think it's understanding the value for your particular customer and then balancing this price with the perceived value or that customer.
Emily Lane 17:34
Okay, so that's all about, you know, kind of customer facing strategies. Let's look at operational efficiencies and in areas where execution of good strategies can help provide a competitive edge or help you stay healthy in a potential downturn, where do brands waste the most money operationally?
Bret Schnitker 17:56
Most waste happens in two places, over production and inefficient workflows. I think brands often produce too many SKUs, or they commit too large of runs without accurate demand forecasting, and that leads to markdowns and debt inventory. Very, very expensive on the workflow side, to get rid of too Yeah. Today, right, yeah. On the workflow side, I think manual processes and poor communication, but design, like we've talked about before, between design, sourcing and production, that creates delays and cost overruns, streamlining these areas can save a company a ton. Yeah.
Emily Lane 18:38
How can investing in mid level teams and processes improve economics.
Bret Schnitker 18:43
Mid level teams like sourcing, product development and operations we've talked about. They're the backbone for production. When these teams are strong, they're going to catch problems. They're going to catch them earlier. Most of them will negotiate better terms, and they'll keep the timelines tight. They'll understand that sense of timing needed for each season's launch or each product delivery. And then you know documented processes for two team members and existing team members. It reduces dependency on a few key people, and it creates consistency, which I think reduces risk, and it improves scalability. It's not glamorous, but it's kind of where the profitability lives.
Emily Lane 19:28
Yeah, we talked a bit about this in our previous episode, but in case you didn't catch it, I want to bring this question up once again, because I think it's very relevant for this particular conversation. There's been so much shift in this industry with regards to executive leadership. So how can brands reduce dependency on the founders and executives and, you know, make sure that their self, their their economic system is healthy in that way,
Bret Schnitker 19:58
by building systems not. Analytics, and we talked about it too many brands land founders for every decision. Sometimes it's self inflicted, because founders like to be involved. Some we call it micro management. It's not healthy. I think it creates bottlenecks and burnout. I think the solution again, you document workflows, you delegate authority, you empower these mid tier leaders. When businesses run on processes instead of personalities, they always become more resilient. And then in the end, sometimes the you know, if it's a small to mid level business or it's privately held, as the leaders decide to transition out. Certainly more attractive to invest.
Emily Lane 20:43
Yeah, I would add to that too. You know you're talking about the empowerment of the mid level teams. Ongoing skill growth would be really key here. As a company, investing in that would be a smart investment, because you're you're able to then empower your teams even further
Bret Schnitker 21:04
well, and today's formal education doesn't prepare, you know, these teams for the ever changing landscape, so constant skill development, new ways to educate them with New technologies is critical today to stay ahead.
Emily Lane 21:22
Yeah. Okay. Final question, are you ready? I'm ready. I kind of feel like I'm I'm like, on the hot wing show right now. Like, are you ready for the hottest wing Bret,
Bret Schnitker 21:32
I'm gonna, am I gonna? Cough?
Emily Lane 21:34
No, okay, no, I don't think so.
Bret Schnitker 21:37
Bomb, beyond insanity, in quotations, copyrighted by hotline.
Emily Lane 21:44
If growth slows, the smartest brands will focus on resilience, not expansion. We talked about that in the previous episode as well. What is your one piece of advice for fashion leaders heading into 2026
Bret Schnitker 21:57
my advice is build resilience in every part of your business. I mean, that means tightening operations. That means protecting margins. It it really staying laser focused on your core customer. I don't think you chase growth for the sake of growth. Yeah, I think you chase clarity. You chase adaptability. I think the brands that are going to win in 2026 are going to be the ones that can pivot quickly without losing their identity and resilience. Boy, resilience is going to be a key, and it's about playing defense. It's about creating a strong foundational growth enough to seize opportunities when they come. So, you know, be prepared, be you know, a lot of people talk about why companies like ours have survived multiple decades. Yeah, right. And it really is about perseverance. It's about resilience, about focus, and I think these things are going to be really
Emily Lane 23:01
important, not being in the blind, yeah. Also, yeah. And, you know, keeping in touch with the industry through a podcast, perhaps, right exactly, subscribe what's happening that's an amazing idea. Well, in a slower growth era, survival isn't about chasing scale. It's about mastering efficiency, as we've talked about that comes in lines of protecting your margins, planning your inventory with precision, and embracing that less is better approach. Consumers are buying with intention, and Brent must respond with purpose. Future belongs to those who can balance creativity with operational strength. Those were all really great insights. Thank you Bret for joining me in this conversation today.
Bret Schnitker 23:55
Do I have a choice? No, you don't.
Emily Lane 23:59
Thank you for listening to this conversation. If you have topics that are of interest, do not hesitate to send them on in we're mapping out a new, exciting year of 2026, episodes. We look forward to sharing those with you, and don't forget to subscribe to stay apprised of upcoming conversations.
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