The covid-19 pandemic has hit the fashion industry worldwide. Many production plants of brands located in developing countries were forced to stop production due to the epidemic situation and curfew. According to Reuters, Nike’s two largest shoe factories in Vietnam were forced to stop operating after these factories detected nearly 300 positive cases among their workers.
Are known, 49% of Nike shoes exported worldwide are made in Vietnam. This delay in the supply chain will deal a fatal blow to the American sports brand.
Especially, when the back-to-school season and year-end shopping are approaching, if the product is not supplied to the market, Nike will surely lose a lot of money and reputation. However, a representative of Nike told CNBC America that, The brand would rather sacrifice profits at the expense of workers’ health.
The supply disruption will also cause many Nike shoes to run out of stock quickly and their prices can be greatly inflated, especially in the resale market. According to Mr. Matt Friend, Nike’s chief financial officer, the scarcity and price push of this product will last until 2022. As soon as this information about this shortage of supply was released, Nike’s stock price has already dropped evaporated 1.3%.
What you should do now is polish and refurbish your old Nike shoes that you are throwing in the corner of the closet, because maybe later, they will become rare?