Bags / Shoes & Accessories

According to the latest news from the Vietnamese Ministry of Health on the evening of September 7th, in the past 24 hours, there have been 14208 newly confirmed cases of new coronary pneumonia in Vietnam, including 14193 new cases in the country and 15 imported cases from abroad.

As of the evening of the 7th local time, Vietnam had a total of 550,996 confirmed cases of new coronary pneumonia, a total of 311,710 cured cases, and a total of 13,701 deaths.

On September 7, according to multiple media reports: the epidemic hit, but shoe factory orders are still strong.

The epidemic hit Vietnam, a global shoe-making center, and the production capacity of various shoe factories was greatly affected, and the third quarter's performance was lost.

However, the good news is that the current order demand of various brands is still greater than the production capacity of various shoe factories, and major brand manufacturers have no signs of taking orders. The cumulative revenue in July and August is still increasing compared with the same period last year, and the industry is still full of confidence in the future. .

The industry’s memory is still fresh. The outbreak of the new crown epidemic last year has led to measures such as lockdowns and even lockdowns across the world, which has severely damaged the global sports industry supply chain. Become a pain in the heart of shoe manufacturers.

As the epidemic slowed down, the footwear industry also saw signs of a boom in the fourth quarter of last year, including global sports brands Nike and Adidas, which successively released news of better operations. In the first half of this year, orders were received by factories, and production lines followed suit. Working overtime and rushing to deliver goods all performed well.

The production line in Vietnam is the lifeline of the shoe and apparel brand

Based on reports from the Wall Street Journal and other foreign sources, the closure of a large number of factories in Vietnam will affect the smooth flow of many supply chains, among which the footwear industry has a huge impact.

After Ho Chi Minh City entered the second round of large-scale work stoppages on July 9 due to the spread of the epidemic, major international apparel companies such as NIKE, GAP and CalvinKlein have all been impacted.

Vietnam’s production line can be said to be the lifeblood of apparel brands. Large companies rely heavily on local factories to operate continuously, and finally sell their products to all over the world. According to data from the American Apparel and Footwear Association (AAFA), One-third of the products are made in Vietnam, and one-fifth of the US apparel manufacturing industry is supplied by Vietnam.

In the footwear manufacturing industry, the world-renowned NIKE, more than half of the shoes are manufactured locally in Vietnam, and GAP and sportswear brand lululemon products also account for more than 30% of the production in Vietnam.

Therefore, in order to prevent the supply chain from being affected, the aforementioned companies and more than 80 other footwear and apparel companies have written to U.S. President Biden in July, hoping that the U.S. government will speed up the donation of vaccines to Vietnam, and frankly say whether the epidemic in Vietnam and factory operations are Perfection is directly related to the future of the American apparel industry.

Although supply chain issues have been plagued by these international apparel leaders since the outbreak of the epidemic, with the Delta variant virus breaking through the Vietnamese defense line, the factory must be completely closed due to the closure of the city. This is the most serious challenge so far, and it may be necessary to increase stocking in advance. Or have to go to China and other places to find substitutes for procurement, and the result will likely lead to higher costs.

An AAFA spokesperson pointed out that the Vietnamese factory will have to resume production in 1 to 2 weeks at the earliest; however, because the shutdown period happens to be the time for apparel sellers to stock up for various festivals at the end of the year, it is a huge unknown whether the purchase at the end of this year will go smoothly. .