Bags / Shoes & Accessories

As the main producer of apparel and footwear in the world, Vietnam has had to close a large number of local foundries due to repeated recent epidemics.

The temporary interruption of Vietnam's supply chain has also brought a lot of trouble to the multinational European and American companies that set up factories there. Adidas is one of them.

Recently, Adidas officially stated that since mid-July this year, the company has received news that a number of Vietnamese suppliers have been forced to interrupt their production capacity.

In this regard, Adidas estimates that the company will lose nearly US$600 million (approximately 3.89 billion yuan) in sales in the second half of the year.

At the same time, the company also said that due to the limited production capacity and the shortage of goods, it will consider increasing prices to make up for the loss.

According to statistics, in 2020, Adidas’ operating income in the Asia-Pacific Greater China region will reach 6.425 billion euros (approximately 48.998 billion yuan), accounting for 32.38% of the company’s total revenue during the same period. If Adidas prices increase, the Chinese market may be forced to become The primary object to pay for it.