Lights, but shadows as well, on the sneakers market, where the battle between Western and Chinese brands could broaden its horizons and become planetary, at least in the technical and volume segment. For example: Adidas and Nike are suffering from supply chain problems, while Li Ning and Anta are flying. In any case, sneakers remain an important driver for luxury, because it represents the entrance ticket for new consumers and the brand image it offers.
Lights, but shadows as well
According to Claudia D’Arpizio from Bain & Company, “30% of new consumers enter the luxury segment by buying trainers” (source: Fashion Network). The best example of this consideration is Dior’s Air Jordan 1 OG, priced at 2,200 euros per pair. 13,000 models produced. 5 million requests. Not only that. More broadly, considering the obsessive mania (often collectors’, but even more speculative) that they have generated, the sneakers business attracts cascades of capital. In fact, according to an elaboration by Fashion United, it has attracted investments of over 1.3 billion euros this year alone.
The battle of the giants
Outside of luxury, in the more technical and casual segment, the “usual giants” are facing two challenges. Firstly, supply chain difficulties. The second, is the growth of Chinese competitors. Challenges that, for example, weighed on the third quarter of Adidas (5.7 billion euros, “only” +3.4% on 2020). On the other hand, Li Ning and Anta, big Chinese players, recorded a 60% increase in sales in the first half of the year, accelerating a phenomenon that was already underway, driven by the growing patriotism of Chinese consumers.
Supply chain and investment (by Nike)
In terms of logistics and supply chain, according to Bloomberg, Nike’s nearly 200 Vietnamese subcontractor factories have resumed full production after the recent lockdowns. This immediately prompted the American multinational to announce that it would invest in increasing production in Hanoi.
Read also:
