UNIQLO, Gap, and Nike disrupted by COVID-19 epidemic
16:57 | 22/02/2020 Print Article
The lack of local supply for garment and textile producers caused by the COVID-19 epidemic has raised concerns among international fashion brands like UNIQLO, Gap, and Nike.
|UNIQLO, Gap, and Nike are struggling with supply and material shortages |
Many garment and textile manufacturers have suspended their operations or began operating at reduced capacity due to the lack of material supply from China. Many of these enterprises are suppliers for international fashion and shoe brands.
For example, UNIQLO does not focus on manufacturing exclusively in China as it has bases in other Asian countries as well. It has co-operated with 70 manufacturing companies as business partners, one-fifth of which come from Vietnam, such as Kim Thanh Textile and Garment Co., Ltd., Viet Tieng Garment, Panko Vina, and Shin Dong Garment. According to the representative of Saigon 3 Garment JSC, a supplier of UNIQLO and Nike, the company has enough materials for production until March.
Nike also has a series of Vietnamese suppliers, including Oriental Garment An Giang Co., Ltd., Nam Dinh Garment JSC, and Damco Vietnam.
Having many suppliers from Vietnam is, unfortunately, a disadvantage for international fashion and shoe brands because 60 per cent of imported fabrics come from mainland China and Taiwan.
In another side, UNIQLO issued an announcement on its Japanese website that it has been experiencing delays in production and logistics. The company had to adjust the timeline of launching its new collections. Notably, it will delay the launch of UNIQLO U coat in the Spring-Summer collection to March instead of February 21 as initially planned.
Besides, there is information that customs checks have been delayed and its factories in China have to operate at reduced capacity due to a lack of employees.