NIKE: With a shortage of products?

​A difficult situation has arisen for the international sports footwear and apparel giant, directly related to the supply of its items to the global distribution chain.

This is a consequence of the massive mandatory closure of factories, imposed by the governments of Vietnam and Indonesia, from July to September, given the persistence of the pandemic in the region, which does not allow to comply with the purchase orders issued.

It should be noted that NIKE manufactures three quarters of its total footwear production in Southeast Asia: 51% in Vietnam and 24% in Indonesia.

The managers of the brand consider that 10 weeks of production have been lost so far, and that the restart of the activity, if it takes place in October, may take several months to normalize.

The same sources pointed out that the shortage of products occurs in a period where many markets are recovering consumption levels, as is the case in the United States, where, unfortunately, this demand cannot be satisfied due to the lack of merchandise.

Logistics has also added difficulties to the situation due to restrictions on port activity in Asia, a shortage of containers and sharp increases in ocean freight.

From NIKE they assure that they are looking for alternative suppliers, but they are cautious regarding the time to develop them, depending on the immediate needs of consumers.

RELATED ARTICLE:

By Covid in Vietnam, 50% of the world production of NIKE is in danger