According to APN, sneaker brands have let manufacturing companies know they’ll cut production by 30%-40%, starting in Summer 2023. Retailers and customers won’t feel the effect of the reduction until 2024 according to experts. Chinese COVID restrictions as well as adidas and Nike pulling out of Russia due to the war in Ukraine are the main catalysts in the decision even though the retail economy in the US and Europe has grown in 2022, brands are expecting a decline in 2024.
Production in Vietnam and Indonesia has slowed down to operating 3 days a week with the utilization rates in Vietnam factories falling from an average of 82-84% down to 61% since October.
(Lead image via CFOTO/Future Publishing via Getty Images)