Nike and adidas Expected to Reduce Production by 30-40 Percent
As inventories pile up at major manufacturers and consumers spend less, major sportswear brands are cutting production numbers by 2023.
With the coronavirus pandemic, many consumers began a major rethink and change in the way the world, people and companies go about their daily lives. The financial market has also seen better times and gone are the days when PPP loans and stimulus checks flowed into bank accounts in the U.S: Through this, consumers lovingly spent money and boosted the economy, while at the same time the sneaker industry exploded. In this fertile environment, only a few colorways of each model were released each year, and the production numbers for these were also quite low, which in turn had created enormous hype. As a result, virtually every shoe released held at least its value and quite a few fetched many times their original price, as the demand was just so enormous.
The manufacturers of course saw their chance here and wanted to get a piece of it. So you could observe the last few years as the brands have ramped up their production enormously and so we see today that, for example, as good as every day a Dunk Low is published and hardly a model still has resell value, because the market was flooded so enormously. But of course this effect is not only seen by the "bad" resellers but also by the brands, which have exploding costs due to increasingly full warehouses due to unsold out releases.
This phenomenon with the oversaturated market coupled with a continuing Corona pandemic, uncertainties due to sharply rising interest rates and the war in Ukraine now probably cause that the brands are forced here again to rethink.
The exact factors that have led to this would require a much deeper analysis, but for this reason, there are reports that brands like Nike as well as Adidas are reducing their production numbers in 2023 and beyond.
From Hypebeast wrde here that reports indicate that major footwear manufacturers have notified their production facilities as well as are reducing their order volumes by 30-40% from the 2023 summer season. Moreover, insiders have indicated. that this is likely to continue throughout the second half of 2023. This action by manufacturers means that releases could see a big drop into 2024, giving the sneaker market a bit of a boost.
We are curious when and how we will notice these measures in the next releases and whether the resell value of freshly released models could directly increase strongly as in the past.
Until then, we have the best Nike and Adidas Releases in stock for you at King Of Kicks.