The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

As Covid Crisis Escalates, Nike Could Run Out of Vietnamese Sneakers

Joan Kennedy

19 July 2021

On Thursday, two of Nike’s suppliers in Vietnam — Chang Shin Vietnam Co. Ltd. and Pou Chen Corp. — halted manufacturing because of a worsening Covid-19 outbreak. The crisis could create lasting supply chain disruptions for the sportswear giant according to an S&P Global report based on Panjiva data. The report stated 49 percent of US seaborne Nike imports came from Vietnam in the second quarter of 2021. Footwear accounts for most of Nike’s shipments from Vietnam: 82 percent of shipments from the country included footwear in the 12 months before June 30, said the report.

Further Reading: The Risky Business of Emerging Manufacturing Hubs

The pandemic is not the only cause of disruption to global supply chains. From Myanmar to Ethiopia, civil unrest and political conflict are impacting suppliers used by brands like H&M and Benetton.

About the author

Joan Kennedy

Joan Kennedy is Editorial Associate at The Business of Fashion. She is based in New York and covers beauty and marketing.

In This Article

Topics

Retail

Organisations

Nike

US Sues to Block $8.5 Billion Union of Coach, Michael Kors

Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.

Op-Ed | How Long Can Adidas Surf the ‘Terrace’ Trend?

As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.

How Rent the Runway Came Back From the Brink

The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.

For Struggling Public Companies, Going Private Is No Panacea

Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.