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Consumption: Ikea, Nike … facing supply problems



Supply problems are increasing at Ikea and Nike. In question, the difficulties of transport from Asia in particular, where the main part of these products are manufactured: with the economic recovery, the containers are lacking for the deliveries by boat, suddenly, the journeys are more expensive, the rotations less numerous. , and the delays are getting longer. Not to mention the lack of truck drivers for European transport, and the surge in energy prices which further increase supply costs.

In this context, many brands find themselves stuck: at Ikea, there are shortages on 20% of products sold in stores or on the website. Same problem at Nike which records, for its sneakers or its clothes, a lack of stocks equivalent to 10 weeks of production. Because of the Covid, the factories of its suppliers in Indonesia have, of course, reopened, but they have accumulated big delays. As for those located in Vietnam; most of them are still closed due to the pandemic.

And this Christmas 2021 may well be disrupted. Under the tree, toys could be missing, especially those with electronic components, such as game consoles, smart dolls, etc. It is estimated that this is 30% of the market. The fault of Chinese and Taiwanese manufacturers, who are unable to meet all the demands. Right now, it’s a rush, all the big toy store chains are fighting to build their stocks, and suppliers favor the highest bidder, the highest paying ones.

For the moment, the price increases are generally contained by the distributors, who are cutting back on their margins but it could not last as the raw materials increase: in a few months, sugar has taken 45%, wheat 32%, 60% price increase for pulp. Suddenly, the price of toilet paper, paper towels, hygienic protections should increase by 30%, announce the major brands in the sector such as Lotus or Okay. And we risk paying more for pasta, coffee, or even olive oil.

Finally, it is without counting on the possible salary increases, warns the president of Medef, Geoffroy Roux de Bezieux: according to him, if we increase the salaries too much, it will necessarily be passed on to the customer at the end.



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