Nike’s global sales of sneakers have been affected by the COVID-19 epidemic, which has also led to a sharp decrease in orders from the upstream supply chain. Many manufacturing plants have been unable to make ends meet and have chosen to close or relocate.
Recently, Chin Lok Group (VC), a Nike shoe manufacturing factory located in Tangerang, Indonesia, could not withstand the economic blow brought by the epidemic and terminated the contracts of 4,985 factory employees.
Qinglu Group is a Taiwanese shoemaking company with two factories in Indonesia. The company has not yet responded to the layoffs.
“Qinglu Group laid off 4,985 employees in Indonesia. They are the tenth company in the Tangerang region to be unable to survive the impact of the epidemic.” Hedra, the local government’s labor dispute settlement president, said.
“Due to the sharp drop in market demand for sneakers, they were unable to make ends meet and laid off employees. Qinglu Shoe Industry has explained to us the reasons for the massive layoffs in a meeting, and union representatives from the factory also participated in the meeting .”
Earlier this month, another shoe factory in Tangerang also closed, laying off 2,500 employees. Banten Province, where Tangerang belongs, has the highest unemployment rate among Indonesia’s 34 provinces this year due to the closure of many factories. According to government statistics, the unemployment rate in Banten Province is as high as 8.01%.
Firman Bakri, chairman of the Indonesian Footwear Producers Association, said that if demand continues to be sluggish, shoe factories that supply well-known sports brands such as Nike and Adidas may lose up to 70% of their orders. , leaving more workers facing unemployment.
Affected by the protests, Nike, Adidas, etc. closed some stores in the United States
On June 1, according to the “Wall Street Journal” Chinese website, Nike It also confirmed that the company will close some U.S. stores affected by the protests. “Nike supports free and peaceful protests and we do not tolerate violence,” Nike said in a statement. “We are closely monitoring protests occurring across the country.” The company said it was unclear how many stores had been closed or when Nike would reopen them. During protests on Saturday (May 30) night, rioters broke into a Nike store in Manhattan.
In addition, According to the Wall Street Journal, Adidas will temporarily close all of its stores in the United States after at least one store was attacked by rioters on Saturday night. According to CNBC, Walmart confirmed that it will close hundreds of stores nationwide.
Future sneaker trends – new shoe model Nike Waffle Racer Crater exposed
In February this year, Nike originally released many new products to prepare for the Tokyo Olympics.
One of the “Space Hippie” series is an unusual recycle of waste materials from factories such as plastic bottles, discarded T-shirts and yarns, and use them to create new materials.
At the same time, the midsole of the shoe is equipped with Crater Foam made of 15% Nike Grind rubber, which is combined with ZoomX foam to achieve lightweight performance and comfortable feedback. The entire pair of shoes becomes the brand carbon. The shoe with the lowest footprint. This series of shoes will be unveiled in batches in the spring and summer, and a new pair of shoes have been exposed on the Internet a few days ago. They also have midsoles made of recycled materials similar to the “Space Hippie” series, but the uppers are made of Nike. The classic running shoe Waffle Racer is transplanted to create a retro atmosphere.
However, this pair of shoes has not been officially confirmed, but it was first exposed by Instagram user @solebyjc</p
