Delays and cancellation of sneakers due to COVID over the past 18 months have left sneakerheads even more short-handed than ever before. With Nike’s supply and demand model already geared to unattainable levels, the global pandemic surely shifted the supply even further out of tilt to the overwhelming market demands. But as perCNBC via S&P Global Market Intelligence, things could be getting much, much worse.
Two of Nike’s biggest suppliers in Vietnam – Chang Shin Vietnam Co. and Pou Chen Corp. – have halted production due to the country’s worsening COVID crisis. With the two factories in Vietnam currently producing approximately half of the total Nike branded footwear, a global shortage in sneakers is inevitable — again.
Image via Snopes
‘The health and safety of our teammates, as well as that of our suppliers, remains our top priority,’ a Nike spokeswoman told CNBC via an emailed statement.
With no date yet set for reopening, Nike may well have to look to other global suppliers to share the load.
‘We continue to work with our suppliers to support their efforts in response to the dynamic and unprecedented nature of COVID-19. As we continue to navigate these circumstances, we expect our suppliers to prioritize the health and livelihoods of their employees and continue to comply with legal requirements and the Nike Code of Conduct on the provision of wages, benefits, and severance. We are confident in Nike’s ability to navigate these near-term dynamics and we remain prudent in our planning.’
Nike will not be the only brand affected by the nation’s factory closures, but with the proportions produced and the brand’s already highlighted supply and demand shortfalls, the happenings in Vietnam will surely alter the future for both brand and consumer.
As always, keep your eyes glued to our official Twitter account for further updates on the situation
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