Companies Are Pushing Prices Further Than Ever, and Consumers Still Aren’t Resisting
Raising prices used to require careful timing, exhaustive consumer testing, and carefully worded press releases explaining why your product costs more. Now, brands are seeing how far they can push increases without much customer pushback — thanks to the magic of premium positioning, rising tariff-related costs, and an economy where affluent consumers keep spending.
The premium advantage: The split-screen economy has created ideal conditions for aggressive price hikes, especially for brands catering to shoppers who aren’t feeling the pinch. Swiss footwear maker OnONON is a prime example — it raised sneaker prices in July and saw virtually no pushback. Telsey Advisory analyst Cristina Fernandez says On has captured loyal and wealthier shoppers more nimbly than competitors, with customers typically buying multiple pairs once they’ve tried the brand.
- CEO Martin Hoffmann credits On’s brand positioning: “As a premium brand, you have pricing power. The consumer doesn’t change with the tariffs.”
- Meanwhile, the company explicitly stated it has no plans to offer discounts this holiday season — a stark contrast to competitors facing more cautious consumer sentiment.
The Price Hike Loop
Tariffs have given companies both the cover and the need to raise prices. SpotifySPOT is already preparing another US subscription increase in early 2026 — its first since July 2024 — as it chases consistent profitability. JPMorgan analysts estimate that even a $1 monthly bump would add about $500M to Spotify’s annual revenue. Meanwhile, major record labels have been pressuring streaming platforms to raise fees, arguing that prices haven’t kept up with inflation and still look cheap next to video services like NetflixNFLX.
- Abercrombie & FitchANF plans targeted spring price increases after a projected $60M Q4 tariff hit, with CFO Robert Ball saying mitigation efforts ramp up in 2026.
- NikeNKE expects $1B in added tariff costs in fiscal 2026 and will roll out surgical price increases this fall, with CFO Matthew Friend calling tariffs a new and meaningful headwind.
Cost-push crunch: WalmartWMT CEO Doug McMillon says “even at reduced levels, the higher tariffs will result in higher prices,” while TargetTGT CEO Brian Cornell warns tariffs on goods from Mexico and Canada will likely push produce prices higher. The pattern points to an era where mass-market retailers are forced to pass along tariff costs they can’t contain, leaving them vulnerable if price-sensitive shoppers finally hit their breaking point. It’s a real-time test of which companies have true pricing power and which are simply running out of room.