How the Coronavirus Crisis is Impacting the Sneakers and Sportswear Industry

Runners have got something to be happy about amidst the COVID-19 crisis. With many people committing to an active lifestyle, leading market brands have responded. Brands such as Saucony, Altra, and Brooks are shifting their promotion strategies. Social media campaigns are now focused on the promotion of local stores.

Coronavirus and the sneaker industry - 3993993Even with runners’ desire to keep fit, sales reports show nothing positive about the sneakers and sportswear industry. It is clear that online sales can only do so much to boost revenue, according to reports from sites such as Sports Domain

Footwear sales down

The NPD has provided data that shows a decline in footwear sales. Matt Powell, NPD sports industry adviser, says all the major brands in the sneaker and sportswear industry are facing a decline in revenues and sales. The coronavirus has affected even categories that were doing well before it hit.

He has further added that in the week that ended March 21st, running shoe sales dropped by almost 70%. It is his view that as long as physical stores remain closed, sales will continue to take a nosedive. This is despite brands embracing e-commerce.

Social media marketing

Jim Webner, Brooks CEO, reported to FN that they have been pushing sales volume through social networks. Brooks has been using social media to keep their clientele up to date. Webner also revealed that their clients have been responding positively. In a day, the brand receives 1,000 visits on its store locator through its website

Todd Dalhausser, Altra’s Running President, is also keeping up with the trend. The company is pushing its clientele to visit local stores before making online purchases.

In keeping the coronavirus at bay, Altra has asked clientele to find out if local stores offer curbside pickups.  Dalhausser added that brands could make a positive impact if they work together to support specialty retailers.

The sneaker industry is not the only one affected

The sneaker industry has felt the impact of the COVID-19 outbreak since 2019 when it began in China. Yet, this is not the only industry that has been hard hit. Coronavirus has also affected the worldwide apparel and textile agencies. One textile agency in China has reported that many firms have canceled export orders.

Puma, the German sportswear maker, has disclosed that the coronavirus has not been good for business. The company has revealed that the pandemic has affected their business negatively. Adidas too has reported a fall in business activity in China. Many companies in the sportswear industry are expressing anxiety. This is due to the impact of the coronavirus on the economy of the sporting goods industry.

Adidas comments on a fluctuating market

China is the main sourcing center for this industry. It produces most of the sneakers and sporting apparel that people wear all over the world. Adidas, which gets almost a third of its sales from China, has closed a large number of stores across the country.

It announced that there has been a significant reduction in traffic within the remaining stores. Additionally, the business has gone down to 85% as compared to the same time last year. The sportswear giant has noted that the full impact of the pandemic is not known at the moment because the situation keeps changing.

But, it is interesting to note that Adidas shares went up earlier this month. This was despite the company issuing a warning to its investors about the affected operations in China. Shares of Puma went up by almost 8% earlier this week. The sportswear maker has recently announced that, like Adidas, they are unable to provide a projection for the business.

Sneaker industry preparing for recovery

Puma also announced that it had closed more than half of all its stores in China. Yet, most of the company’s factories were running again after the New Year break. Even though there is a pandemic currently ravaging the world, the sneaker and sportswear industry is preparing to bounce back.

Interesting related article: “What is the Coronavirus?