Vietnam is the world’s third largest shoe manufacturer following China and India, exporting one billion pairs of shoes a year. Nike occupies more than a hundred factories there. But today, in Pou Yuen, one of the biggest shoe manufacturers will lay off 6,000 people, with an order book that is at its lowest this year.
A few weeks ago, Adidas and Nike also announced a 30 to 40% reduction in production.
If the tastes of consumers are changing, and they are turning away from sports shoes for aesthetic reasons, inflation and its economic uncertainties have also been there, estimates Tuesday in La Matinale de la RTS Nicolas Inglard, director of Imadeo, research company for trade: “Consumer behavior has changed, they are paying a little more attention to their spending”.
According to Nicolas Inglard, the market is changing and production will decrease in quantity in favor of better quality.
“Nike hasn’t delivered to me for 8 months”
At the Swiss level, several traders are experiencing a decrease in sales. Compared to 2019, the “Pomp It Up” stores show a 15% drop in turnover, says their Lausanne owner Guillaume Morand.
In recent years, the largest suppliers have opted for direct sales to consumers. So they closed thousands of accounts across the planet.
For Guillaume Morand, the challenge was to know if he might continue without Nike, the brand not delivering it for 8 months. “But at the moment, demand is changing, Nike’s hegemony is passing”, analyzes William Morand. “I was hesitant to close, but now I’m very positive because people want to move on and to other brands,” he says.
>> Interview with Guillaume Morand in La Matinale:
Radio subject: Katja Schaer
Adaptation web: Miroslav Mares