Nike and adidas Plan Ahead Of Time With 30-40 Percent Production Reduction

Great minds think alike. However, mega-sneaker giants do not just think alike but also think smart! Because recent reports say that Nike and adidas Plan Ahead Of Time With 30-40 Percent Production Reduction starting next year. Furthermore, major names in the athletic footwear industry have already informed their manufacturing companies that they will reduce order volumes. According to sources, it will start in the Summer of 2023. Besides, industry insiders believe that the trend will continue to affect production. It is likely to be that way until Winter 2023. So, it can only mean one thing: we can expect a decline in releases. The time span may hit the Summer of 2024 season.

For starters, the main reason behind the decline is the aftermath of the COVID-19 pandemic. The reason seems valid as it broke out first in China, a major sales market for brands. On the other hand, the perpetual withdrawal of retail locations in Russia is another reason. This past year, we can also see growth in the retail market in North America and Europe. Regardless, a significant drop is predicted for next year. In addition, factories across Vietnam and Indonesia can already feel it. Case in point: average operation rates were around 82-84 percent. However, now it has hit 61 percent.

Nike and adidas Plan Ahead Of Time With 30-40 Percent Production Reduction, and assumptions on the effects and causes seem to justify their actions. For more news in the sneaker world, follow us on Facebook and Twitter.

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