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Nike’s Vietnam factory hit directly by Corona… “It could be a sell-out catastrophe”

Nike's Vietnam factory hit directly by Corona... "It could be a sell-out catastrophe"
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There is a forecast that Nike sneakers made in Vietnam are at risk of running out due to the COVID-19 outbreak.

Nike’s supply chain in Vietnam is being hit by the spread of COVID-19. As of FY2020, about half of Nike’s shoes are produced in factories in Vietnam.

According to CNBC on the 19th (local time), Changsin Vietnam and Fuqian, which produce Nike shoes using the OEM (Original Equipment Manufacturer) method, have recently stopped operating their factories in Vietnam due to the recent surge in Corona 19.

According to S&P Global Market Intelligence, a market research firm in the US, 49% of Nike products imported by the US by sea as of the second quarter of this year are manufactured in Vietnam.

This is why there are speculations that if a disruption occurs at Nike’s Vietnam factory, major importers of Nike products, such as the United States, may suffer.

Consumer options could be limited, with some Nike items going out of stock in the coming months, CNBC said.

As the news broke, Nike’s stock fell about 1.3% from the battlefield.

Nike shares have risen about 11.5% since the beginning of the year.

“The health and safety of our team members, as well as the safety of our suppliers, are our top priorities,” Nike said in a statement.

Source: Online/KSU

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