Nike faces sneaker shortage after recent COVID-19 outbreaks in Vietnam

Nike are facing a sneaker shortage according to a new report from the S&P Global Market Intelligence after the shutdown of the company’s two suppliers in Vietnam.

Chang Shin Vietnam Co. and Pou Chen Corp were forced to halt production after COVID-19 outbreaks in the country, which produces around half of Nike’s footwear collection.

Hypebeast cite S&P Global Market Intelligence’s report, gathering that “Nike’s footwear-led imports from Vietnam accounted for 82 percent of the brand’s shipments in the last 12 months, ending June 30.”

This shortage will have a significant effect on the back-to-school and summer seasons which commonly presents the sportswear brand with marketing and sales opportunities.

A Nike spokesperson said in a statement to CNBC, as quoted by Hypebeast, that “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.

“As we continue to navigate these circumstances, we expect our suppliers to prioritize the health and livelihoods of their employees and continue to comply with legal requirements and the Nike Code of Conduct on the provision of wages, benefits and severance.

“We are confident in Nike’s ability to navigate these near-term dynamics and we remain prudent in our planning.”