Direct-to-Consumer Fashion: Houston Brands Tackle Import Tariffs

One of the white cottages located at Matt Camron Rugs & Tapestries, a collection of restored historic bungalows from the 19th and early 20th centuries situated on Westheimer and Bammel, is leased by Lyndsey Zorich. Her home features a light blue door and overlooks a bustling street. The sign in front states “The Avenue.” On occasion, during her shopping events, there may be balloons or streamers on the porch.

Zorich started her business in 2019, and later opened her River Oaks store not long after the pandemic started. At that time, she primarily sold tableware and products from other brands. Following a few years of working on limited edition items and special collections, she felt the desire to create her own women’s clothing line, which she named Mason’s Daughter.

The name originates from my father, who is a mason and has been constructing things throughout my entire life,” she states. “I genuinely discovered my purpose in doing this.

Some of the fabric used in her iconic button-down shirt is sourced from Italy and produced in China. Additional items are shipped from India. Zorich also has an atelier located in Houston; Mason creates special event dresses and individual pieces from deadstock material in New York.

She is among several affluent Houston residents who started direct-to-consumer fashion companies in the last ten years, which depend significantly on importing items like fabric, textiles, and other materials from Europe, Asia, and Latin America to keep production costs low and prices affordable. With tariffs now in effect and subject to sudden changes, some of these business owners are wondering if they can make it through the year. At least one of the entrepreneurs has already been forced to shut down her business..

Looking back, Zorich refers to the spring of 2025 as the most difficult season of her career, with tariffs being implemented through an executive order under the International Emergency Economic Powers Act. Announcements were made to apply a 25% tariff on imports from the European Union on February 26; a 10% tariff on Chinese exports was put in place on February 4, although it has now risen to 57.6%.

We collaborate with external consultants who are well-connected and have contacts in (Washington) D.C., but we were genuinely surprised by the high tariffs, particularly those imposed on China. Numbers like 150% were being mentioned,” she states. “We didn’t anticipate the scale.

Zorich does not have any external investors. With Mason and Mason’s Daughter, her objective was straightforward: create distinctive, exceptional, and practical items for women across multiple generations. Her clientele spans from their early 20s to late 60s.

The tariffs came as a surprising challenge to her business. She worked extra hard to determine the next steps, and quickly started exploring options to diversify her fabric sourcing and manufacturing abroad. Vietnam is her top choice.

I invested years in locating the ideal factories to manufacture our products, and the quality is evident,” Zorich states. “We’ve focused on our atelier in Houston. In the fashion industry, profit margins are already very slim. I haven’t come across anyone who can accommodate this level of growth.

If the tariffs stay the same, or get worse, she will have to increase the prices of Mason and Mason’s Daughter. Casual tops are approximately $128; a popular evening dress style is priced at $695.

I launched my business on Instagram – that’s where we interact most with our customers. From a messaging perspective, we haven’t really informed our customers about what has occurred. We’ll need a plan for that,” she says. “Every time I open the app, it seems like another brand has failed.

Closing up shop

Online shoppers who go to the Inclán Studio website are met with a new shopping experience: “We have closed our site! Thank you for your ongoing love, support, and letting us design some incredible items for you!”

The company established by Paola Contreras operated for 11 years. Every one of Inclán’s coordinated outfits and spacious dresses were crafted internally in Houston. The studio also provided attire for the Thompson Houston hotel, Sol7 Restaurant & Bar, and Chardon.

Contreras started as a limited production venture in 2014, mainly supplying wholesale clients and specialty stores across the country. Later, she shifted to a more direct-to-consumer approach.

We were recognized for our solid colors. We also experimented with patterns from time to time,” she says. “In recent years, we focused more on a particular top and dress that featured a ruffle on the shoulder. These were elegant items with a playful touch.

Muara Digital Team:Houston designer Paola Contreras designs easygoing fashion – now available in cotton

When the tariffs were initially announced, Contreras chose to observe and wait. She was uncertain about their duration. Or the extent of their impact. A significant portion of Inclán’s cotton came from China. Additional fabrics were sourced from Japan and Italy.

The first tariff came in and I thought, ‘OK, we can’t handle that,'” she says. “Things were really shaky. Our president (Donald Trump) makes a decision, but might change it later. That had a significant impact on my choice to shut down Inclán. Our pricing was already pretty high.

Her distinctive style, the maxi-length “Inwood” dress, was priced at $535 when it was available.

In the end, the structure where Inclán established his business, once a sales office for Residences at the Allen, was scheduled for destruction..Instead of relocating and paying more in rent, Contreras chose to temporarily shut down the studio.

It’s more like a break, because I can’t completely claim that I’m finished,” she states. “I could begin something entirely different if the timing was appropriate.

Where it begins to hurt

Kathryn Swain marked the eighth year of her accessory business, Colores Collective, by relocating to a physical shared space in Spring Branch last April alongside interior designer Alexandra Killion.

According to Swain’s calculation, she sells approximately 3,000 to 5,000 handbags annually and earns between $600,000 and $700,000 in yearly income. Katy Perry is a returning client.

We offer a carefully chosen range of products that are not commonly available in the U.S.,” she explains. “Our straw baskets are sourced from Marrakech and Morocco – they are all crafted by hand. Our premium handbag collection is produced in two factories located in northern Italy; while some machinery is used, the process is still guided by skilled artisans. As a direct-to-consumer business, we can provide highly competitive prices.

Swain refers to herself as a proud American residing in a remarkable nation full of exceptional opportunities. Nevertheless, she highlights that several materials are not manufactured in the U.S., like date palm trees, which only thrive in northeast Africa, and which Colores Collective depends on.

I have never encountered anyone here who can sew like these 8th-generation craftsmen,” she adds. “We are lucky that the Moroccan tariffs are only 10%, which we can handle without passing on to the customer. However, this does impact our profits. Italian tariffs are 25%, so we are covering 80% of that and only transferring a minimal portion to the customer.

To bridge the gap, Swain has raised her prices by about $10 per bag. She expects the tariffs to affect the total revenue Colores Collective will earn by the end of the year; being a two-person business, the financial outcome will decide how many staff she can keep and if they can afford to pay their rent.

“For retail businesses, that’s where the real impact hits,” she points out.

As a precaution, Swain is placing larger orders and arranging for immediate shipping of the products to safeguard against potential unexpected tariff hikes. Colores Collective is billed as soon as the product passes through customs.

Twenty-five percent is the point at which it truly begins to have a significant impact on one’s life. Once you reach that level, it may no longer be worthwhile to continue the business,” she states. “How much more can you handle before you need to significantly increase your prices, thereby losing customers who can no longer afford the product?

Roller coaster ride

Freya, a business that focuses on creating handcrafted hats and is located in West University, was founded by Lindsay McConnon and Linsay Radcliffe. The company intends to increase the prices for its new fall resort collection. McConnon explains that the price hike is due to various reasons..

Our prices haven’t kept pace with inflation, affecting all areas,” she states. “We aren’t transferring the tariff expenses to our customers but are working to handle it internally.

Freya offers a variety of high-end accessories under its main brand, including soft items, handbags, leather products, and hats. McConnon and Radcliffe recently introduced a more affordable collection named Freya Beach, which is mainly manufactured in China. This has had a significant effect on both brands.

Our fabrics originate from Inner Mongolia, a region within China. Beach totes are produced in India, as are straw accessories and handbags,” McConnon explains. “Panama hats are crafted in Ecuador; they are similar to champagne, which can only come from a specific area in France. The Americans who constructed the Panama Canal didn’t have sunscreen, so they wore these hats. The particular type of palm used, called toquilla, is considered the finest in the world.

Financially, she believes that rising transportation expenses have had the greatest effect on Freya’s profits, coming closely after labor costs. In recent years, transporting consumer products from Asia through the Red Sea shipping routes has become more difficult.

It’s like a rollercoaster with constant changes. I could spend the whole day understanding the supply chain, and the next day it might be completely different. So I’m trying to act like nothing is going on,” she says. “From when items are shipped until they reach us, the cost might have changed. So we stay focused and concentrate on providing a top-quality product to our customers.

McConnon remembers September 11, when all spending came to a halt. And the economic downturn of 2008. “When people feel anxious, they tend to make poor choices.”

Her and Radcliffe’s approach is to be more cautious. This involves attending fewer trade shows, reducing company travel, and hiring fewer new staff members.

They have taken a practical approach and aim to achieve consistent, cautious growth. On the bright side, one of Freya’s top-selling hat designs, the Cedar, is mainly crafted from wool in Texas. It is sold for $340.

“Running a business is preferable to not having one,” McConnon states.

Hard lessons

Luisa Babarczy and Alejandra Bravo-Correa launched South to North, a temporary retail space operating in Autry Park and South Congress in Austin, aiming to bring Latin American brands to the North American market.

The pair quietly launched an online store during the summer in an effort to establish additional income sources after tariffs were implemented, and they noticed a change last spring.

The more intriguing aspect has been the shift in consumer spending and its decline,” Bravo-Correa notes. “A year ago, we were able to sell a $1,500 dress without any hesitation. However, in April and May of this year, as news began to spread, people started to ask what was going on. Customers would enter the store but weren’t as eager to make a purchase. They became more thoughtful about their buying decisions.

Rent arrangements on a month-to-month basis enabled her and Babarczy to adapt swiftly. They continue to provide distinctive items, but now at more affordable prices.

I’m glad I didn’t commit to a five-year lease, since no one can predict what will happen,” Bravo-Correa remarks. “We’re fortunate these models are more cautious when it comes to risk.

The launch of an e-commerce platform from South to North was already underway. By joining the online marketplace, she aims to attract a larger audience, as they will need to be more organized when hosting in-store events to avoid additional costs.

We’re keeping our hiring very minimal,” she adds. “For business owners, since we’re always eager to experience growth, these are difficult lessons.

South to North’s stock is being held on consignment. Latin America offers more favorable tariffs compared to many other regions. Products from Colombia face a tariff ranging from 10 to 15%, which is ultimately passed on to the end consumer. A particular brand that originally manufactured in Asia had to leave South to North as the partnership was not viable for either side.

One Spanish brand had to increase its prices, so we’ve also had to raise ours since we offer price matching. Many brands are choosing to absorb the costs for now to avoid deterring customers and to keep up with the trend,” explains Bravo-Correa. “Retail usually slows down during the summer; I believe we’ll notice more changes in the fall.”

She and Babarczy express gratitude and a sense of relative safety. They are not as vulnerable as other brands, although the most well-known fashion conglomerates, like LVMH, can handle the crisis more smoothly by boosting production and raising prices.

I anticipate that South to North will remain for a considerable period, but I’m unsure of its exact form,” Bravo-Correa states. “It could involve physical stores, or perhaps we’ll go back to trunk shows.

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