Nike and adidas Expected to Reduce Production by 30-40 Percent
The footwear industry is gearing up for turbulent times.
According to reports, sportswear brands like Nike and adidas are expected to significantly reduce production starting next year. The reports note that major names in the athletic footwear industry have notified their manufacturing companies that they will be reducing order volumes by 30-40 percent starting Summer 2023. Industry insiders are noting that the trend will continue to affect production until Winter 2023, meaning we could see a decline in releases until the Summer 2024 season.
The main reason for the decline in volume is the ongoing hindrances caused by the COVID-19 pandemic in China, a major sales market for brands, and the continued withdrawal of retail locations in Russia. Additionally, despite the growth of the retail market in North America and Europe this past year, a significant drop is expected for next year.
The decline is already being felt in factories across Vietnam and Indonesia, average operation rates used to sit around 82-84 percent, but have now fallen to 61 percent.
Stay tuned for more details regarding the expected reduce in production.
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