Supporting Small Brands Through Uncertainty

At the beginning of September, I had the opportunity to speak with CBC about tariffs and the impact they are having on the beauty and cosmetics industry, particularly on smaller businesses.

One of the things I feel very strongly about is making sure we continue to stand behind small brands, independent suppliers, packaging companies, manufacturers and emerging businesses. They are often the first to feel the pressure whenever the economic environment changes. We saw it during COVID. We see it during recessions and periods of political uncertainty. And we are seeing it again as companies navigate tariffs and changing international trade conditions.

For a large corporation, an unexpected increase in costs may be difficult but manageable. For a small brand or supplier, even a relatively small change in packaging, ingredients, freight or duties can completely change the economics of a product.
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That is why I believe these companies need more visibility, more collaboration and more opportunities to connect with the wider industry. At the Canadian Cosmetic Cluster, we are continuing to think about how we can put a stronger spotlight on independent companies and help create opportunities for them to meet potential partners, customers, distributors, retailers and collaborators.

And I also want to emphasize something that came through in the interview: this should not be viewed simply as Canada versus the United States.

Businesses on both sides of the border have been affected. Canadian companies depend on American suppliers and customers, and American companies depend on Canadian businesses as well. Disruption in a closely connected supply chain is rarely good for only one side.

What this moment can do, however, is encourage companies to look at their businesses differently.
Canada has been developing stronger commercial relationships with Europe, including France, as well as other international markets. For Canadian companies, I think the bigger question needs to become: How do we build businesses that can sell to the world?

The United States will always be an incredibly important market for Canadian companies. It is geographically close, familiar and relatively easy to access. But our ambition should not stop at the border. We need to become exporters to the world. That means understanding Europe, Asia, the Middle East and other international markets. It means attending international trade shows, developing relationships before we urgently need them, understanding different regulatory systems and building products and companies capable of operating internationally.

I also think we need to see more collaboration within our own industry. There are many brilliant small companies operating independently, but sometimes staying small and completely separate limits what they can achieve. We should be asking whether companies can collaborate, share resources, develop partnerships, combine capabilities or even build larger organizations together.
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There is strength in scale, but there is also strength in community.
The interview begins at approximately the 22-minute mark.