Sourcing challenges in Vietnam may lead to cancellations, says American retailer Under Armour

Surge in coronavirus cases in Vietnam lately is giving headaches to many retailers across the globe.

While Nike and adidas are already worried over some of their suppliers shutting down plants in Vietnam, now Under Armour has also, reportedly, said that it is facing product delays.

The American fashion retailer has said that that the second half of 2021 may see the retailer cancelling some orders owing to delays happening due to sourcing challenges in Vietnam.

This was confirmed to media by David Bergman, CFO, Under Armour.

Over the last few months, Vietnam has been battling the pandemic as a result of which manufacturing and logistics issues as well as lack of availability of containers have hampered the flow of goods for Under Armour and other retailers.

While the retailer is already devising strategies to source products from different parts of globe, for apparel and footwear suppliers in Vietnam, it will be a big challenge to ensure they do not lose orders and run into losses.

Notably, Vietnam and Jordan are two of the top two sourcing nations for Under Armour, accounting for 30 per cent and 20 per cent sourcing, respectively.

Known majorly for apparels and footwear, Under Armour has offices across the globe, including  Austin, Guangzhou, Hong Kong, Houston, Jakarta, London, Mexico City, Munich, New York City, Paris, Pittsburgh and Portland, amongst others.