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Uniqlo facing sourcing challenges as Vietnamese factories deal with COVID-19

Uniqlo suppliers are experiencing COVID-19 disruptions in Vietnam

Uniqlo is the latest big apparel retailer experiencing sourcing challenges because Vietnamese factory are struggling with the COVID-19 pandemic.

According to the announcement of Fast Retailing, Uniqlo’s parent business, a number of goods in its “Uniqlo U” collection that were supposed to be published in September and October had been postponed. The four new items were due to be released across Uniqlo’s home market in Japan, as reported by Reuters.

The Japanese retailer outsources all products to its partner factories overseas. Among them, Vietnam is one of the group’s key production countries in Asia.

Due to the COVID-19 outbreak, most clothing manufacturers in Vietnam are currently overburdened with orders, yet they are experiencing labour shortages to meet the delivery schedule, particularly in virus-hit localities. This results in stock delays for Uniqlo.

The group and its Vietnamese factory partners are reported to produce an annual output of $3 billion for export markets. Before the pandemic, the Japanese retailer also planned to increase output in the country.

Besides Uniqlo, other global fashion retailers such as Adidas and Nike are also affected by the COVID-19 outbreak in Vietnam as their suppliers temporarily suspend operation.

VIR