[23] The Rise of Recession Core & Its Impact on Consumer Culture 🧵
A week in post-tariff virality and the resulting impact on brand cultural influence.
Hi! I’m Felicitas, a brand executive focusing on innovation across brands and products from a cultural insight perspective. Drawn to “what’s trending” and “the next thing” I write about cultural phenomena and forces, and how they impact brand marketing today and tomorrow. If you’re looking to understand the business of culture and trends, this newsletter is for you. Interested in connecting? DM me.
TL;DR We’re in the middle of a full-blown “recession-core” moment—a cultural mood shaped by economic data and as well as the vibes of financial anxiety considering US tariffs. Across social media, creators are narrating their daily lives through a recession lens: from “recession hypers” sharing penny-pinching tips on FinanceTok, to the viral trend of building “recession pantries” (yes, it’s a thing), to Coachella tickets being bought via Buy Now Pay Later apps. Simultaneously, there’s a growing sentiment—especially among Gen Z and younger millennials—that luxury brands are price-gouging and selling markup over meaning. Some influencers now encourage followers to bypass traditional retail altogether, ordering what they claim are the same designer products “directly from factories overseas.” Add in ongoing global tariff discussions, and this economic mood is bleeding into brand perception, shopping behavior, and cultural trust. The result? A challenging new landscape where brands must actively defend their value, reputation, and role in an increasingly skeptical economy.
The Challenging New Landscape for Brands
In this current wave of economic skepticism-meets-social storytelling, the pressure on brands—particularly in fashion, luxury, and lifestyle—is immense. The modern consumer isn’t just questioning price tags; they’re questioning value, sourcing, ethics, and cultural relevance. Viral narratives are forming in seconds: a creator breaks down the “real” cost of a handbag, another compares a $3,000 designer coat with a $60 dupe from a Chinese marketplace, and suddenly, entire brand equity is on trial in a comment section.
What makes this moment different is that perception isn't shaped by ad campaigns—it’s shaped by TikToks, Reddit threads, and stitch responses. And in that space, brands that once relied on prestige and scarcity now face calls for transparency, fairness, and proof of worth.
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Key Challenges for Brands
Decentralized Authority
Consumers no longer take brand marketing at face value—they trust creators and peers over polished campaigns.
Misinformation at Scale
Claims like “this comes from the same factory” or “luxury markups are 90% profit” spread quickly, often without verification.
Economic Fatigue = Value Scrutiny
Even affluent consumers are seeking justification, not just aspiration. A $1,000 purchase needs to feel earned, ethical, and exceptional.
Social-First Virality
A single unboxing or dupe tutorial can generate millions of views, undermining months of brand storytelling.
How Brands Can Actively Defend Their Value & Reputation
In times where economic anxiety is shaping consumer behavior and social media platforms serve as cultural courts, brands must take a more active, transparent, and culturally responsive approach to defending their value. It’s no longer enough to rely on heritage, legacy, or high price tags alone. Consumers—especially Gen Z and younger millennials—are demanding not only great products but also honest storytelling, visible craftsmanship, and ethical justification behind what they’re asked to pay.
One of the most effective ways to defend value is through transparency and education. When brands proactively explain the reasoning behind their pricing—whether it’s due to artisanal production, rare materials, or small-batch manufacturing—they help demystify luxury and empower informed purchasing. Brands like Everlane have built their entire business model around this kind of openness, breaking down the cost of labor, materials, and markup on every item. Dieux Skincare, for instance, has faced significant price increases due to tariffs. In response, they have adopted a transparent communication strategy, detailing precisely how tariffs impact their costs. They break down the increased expenses in importing high-quality ingredients and packaging, explaining that despite these challenges, they remain committed to maintaining the highest standards. This approach not only educates consumers but also fosters trust and loyalty by showing the brand's dedication to quality and ethical practices.
Beyond transparency, brands must also invest in storytelling that brings their craftsmanship to life. The goal isn't just to tell people your products are worth the price—it’s to show them. Luxury houses like Hermès, who came under scrutiny these past days for supposedly up-pricing their bags when it supposedly just costs $1.395 to make them, will need to continue show their true craftmanship to debunk the theories out there, by offering content that focuses on hand-stitching, leatherwork, and decades-long artisan training, reinforcing that luxury isn’t just about labels—it’s about legacy and labor.
In today’s climate, it’s also crucial for brands to rethink their approach to influencer marketing. Rather than using creators solely as promotional tools, brands should see them as cultural translators who can offer context, credibility, and nuance to brand messaging. When done well, this builds authenticity and loyalty.
Another important defense mechanism is the ability to respond—smartly and in real time—to viral narratives. When misinformation or criticism surfaces on platforms like TikTok, silence can often be more damaging than engagement and brands have about hals a day max to respond before it could escalate. Brands like Duolingo and Ryanair have set the bar high for cultural fluency, responding to trends and critiques with a mix of humor, self-awareness, and directness that not only neutralizes negativity but often drives brand love.
Lastly, brands must lean into values-driven inclusivity. Consumers today are more interested in what a brand stands for than what it sells. Demonstrating a commitment to diversity, inclusion, and broad representation can create lasting loyalty. A great example is Fenty Beauty, which revolutionized the beauty industry by offering a wide range of shades to cater to all skin tones, and has since cemented itself as a beacon of inclusive branding.
In this cultural climate, brand value is no longer inherent—it must continuously be earned and demonstrated. By embracing transparency, storytelling, creator-led advocacy, and purpose and timeless, brands can not only protect their reputation—they can grow it in powerful, resonant ways to build cultural influence.
[ this article expresses the author’s personal POV and was created with the support of generative AI ]