Cost analysis of Nike shoes and implications of global manufacturing

Viewed 69
The discussion centers around the production costs of Nike shoes in Asia and the wider implications of globalization and manufacturing practices. Comments highlight several points: - A breakdown of costs shows that while the production cost might be reasonable, added logistics and retail markups inflate the retail price significantly. - There is a debate about the sustainability of high retail prices and whether consumers will continue to pay them or switch to cheaper alternatives. - The conversation touches upon the shift in manufacturing from the US to Asia and the rising competitiveness of Asian companies in technology and manufacturing, raising concerns about the future of US competitiveness. - Commenters argue that simply bringing manufacturing back to the US won't restore jobs due to automation, and that the brand image of companies like Nike relies more on lifestyle marketing than actual shoe sales. - A critical view of the retail sector suggests that a monopoly among retailers may contribute to inflated prices, detracting from consumer choice and affordability, similar to trends seen in other sectors like cinema. In summary, maintaining or increasing retail prices poses risks for brands, and the need for competitive positioning against a backdrop of globalized manufacturing and technological evolution becomes increasingly vital.
0 Answers