Nike could run out of sneakers because of Covid-19

Nike could be running out of sneakers: this is the risk caused by the outbreak of a new wave of Covid-19 in Vietnam, as explained in a report by S&P Global Market Intelligence. Nike's two Vietnamese suppliers, in fact, Chang Shin Vietnam Co. and Pou Chen Corp., have had to suspend their operations due to a surge in infections – a stop that could cause enormous damage considering how made in Vietnam sneakers make up about 50% of all the footwear of the Beaverton brand.

The risk is therefore that it will not be possible to place orders for the stocks of the winter seasons – a crucial period for shopping, given its correspondence with the Christmas holidays. As if that were not enough, Covid-19 has caused other problems to the supply chain of many brands including the lack of containers and space in international ports. It is no coincidence that Nike's CFO, Matt Friend, predicted that the logistical problems will last until 2022, but a spokesman for the brand stressed the importance of compliance with anti-Covid measures:

«The health and safety of our teammates, as well as that of our suppliers, remains our top priority. We continue to work with our suppliers to support their efforts in response to the dynamic and unprecedented nature of Covid-19. […] We are confident in Nike’s ability to navigate these near-term dynamics and we remain prudent in our planning».