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Nike is running out of shoes

Nike is at risk of running out of sneakers made in Asia.

Nike is running out of shoes

If the COVID pandemic continues to spread, Nike may face a sneaker shortage, according to S&P Global Market Intelligence. In particular, this concerns the situation in Vietnam, which now accounts for about 50% of all Nike footwear production.

The second largest sourcing country for Nike’s footwear (24%), Indonesia, has entered the worst-case scenario in dealing with the Covid-19 pandemic.

Last month in Vietnam, footwear suppliers Chang Shin Vietnam Co and Pou Chen Corp unexpectedly shut down factories in Vietnam, "due to the increased number of people infected with coronavirus", both among workers and across the country, in general.

If this trend continues, Nike could run out of stock in the third and fourth quarters of this year. This is the time of the school season, followed by the holiday season, which are the peak times for shopping.

Shortages could become a serious problem not only for Nike, but for the global supply chain. There is no one ideal way of managing supply chain risk. Consumer prices keep on growing.

Just do it.

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