The world of sneakers has always been abundant in overpriced footwear, but the issue seems to escalate with Nike’s proposed price increases. According to CNBC, the prices will be raised to around 2 to 10 dollars for any kind of footwear. While this increase may not seem that bad, it does highlight the current issue Nike is facing with its manufacturing.
While the company is based right here in America, only a small portion of shoes are made in the country. Most of their production is sourced internationally in countries like China and Vietnam. This is because the labor costs are far cheaper in these countries, making it more profitable for apparel companies to source their factories there.
If you have been keeping up with the tariffs being enacted in America, then the hike in pricing might make more sense. Manufacturing internationally will now affect the profits that the companies would save, so it seems that the consumers will make up for this shortfall. There is no telling if these increases will get worse over time or if other shops will do the same with their products.
While this is bad news for people wanting the newest Nike footwear, it may also be an opportunity for Nike to pivot to more domestic manufacturing locations. People have known for a while that the conditions of the factories overseas are pitiful, as safety regulations are often below average and worker abuse is rampant. This could be a chance for companies to turn away from such unethical practices and focus more on providing workers with better living conditions within the country.
