Vietnam has been shut down for nearly two months due to the epidemic, and Nike’s inventory is running out!

Vietnam has been shut down for nearly two months due to the epidemic, and Nike’s inventory is running out!

Since July this year , Vietnam has become a severely affected area of ​​the epidemic. As the number of infections continues to increase, the government has begun to order blockades, especially in Ho Chi Minh City. As the country's economic center, there are a large number of factories in the area, which have to suspend work and production under the epidemic situation.

 

The Vietnamese government originally expected that the epidemic would be effectively controlled by September, but now it is the end of September and the number of confirmed cases in Vietnam is still more than 210,000, and the current epidemic situation is not as optimistic as originally expected.

 

Vietnam has been shut down for more than 10 weeks since July this year , but the nearly two-month epidemic blockade has made it difficult to maintain the local economy. It has also had a very serious impact on the global supply chain. Due to the abundant and low-priced labor resources in the region, many well-known global companies such as Nike and Adidas have factories in Vietnam.

 

However, the 10-week shutdown in Vietnam has severely affected the supply chains of many companies. Recently, there have been reports that the company's sales have been severely hit by the shutdown of Vietnam due to the epidemic, delayed deliveries, and congested sea transportation.

 

It is reported that nearly half of Nike's footwear and one-third of its clothing are produced in Vietnam, and currently nearly 80% of the company's footwear factories and nearly half of its clothing factories in southern Vietnam are still closed. Although the Vietnamese government recently announced that it would lift the blockade and prepare to resume work "with illness", the long-term shutdown and the resulting supply chain disruption have indeed had a significant impact on the company's revenue.

 

According to Nike's financial report released on the 23rd, Nike's revenue for the quarter ended August 31 was $12.25 billion, lower than analysts' expectations of $12.47 billion. As a result, Nike's stock price has fallen by about 9% from its high in early August.

 

Now Vietnam is preparing to resume work "with problems". I wonder whether Vietnam's subsequent resumption of work can remedy the disruption in the supply chain.


Vietnam Epidemic

Nike's inventory is running out

<<:  Ozon starts delivery service for furniture retailer Hoff

>>:  During the holiday shopping season, e-commerce faces challenges such as supply chain and returns

Recommend

What is Webship? Webship Review, Features

<span data-docs-delta="[[20,{"gallery"...

What is Qiyue Supply Chain? Qiyue Supply Chain Review, Features

Qiyue Supply Chain is headquartered in Los Angeles...

What is sens-wine-cellar? sens-wine-cellar Review, Features

sens-wine-cellar searches the globe for wine and c...

What is Matchapart? Matchapart Review, Features

Matchapart is an online inventory system that inst...

Wildberries starts selling over-the-counter medicines online

According to foreign media reports, Wildberries, ...

What is Cocofloss? Cocofloss Review, Features

Cocofloss is an online sales website focusing on o...

About 94% of Germans choose Amazon for online shopping

July 7 news, according to foreign media reports, ...

What is andersendkdk? andersendkdk Review, Features

Andersendkdk is a Danish family-owned and operated...

What is ZealousCRM? ZealousCRM Review, Features

ZealousCRM is a tool that provides computer progr...