Puma Is Worried About The Upcoming Tariff Policy Or Moves Chinese Factories To Other Asian Countries

Although Puma's net profit increased by 36% in the first quarter, it is still worried about the upcoming tariff policy. 　　

Since the US government announced a few days ago that it would impose additional tariffs on US $100 billion worth of Chinese goods, the German movement clothing The brand Puma had to start taking emergency measures to deal with the trade war.

On April 24, Bjorn, CEO of the brand Gulden said in the teleconference that the company is studying the emergency plan in order to officially announce the footwear In the case of tariffs on products, some production activities were quickly transferred from China to other Asian markets.

"Puma's business in China has been very strong, especially the first sales increase in 2018 was more than expected. But at present, one third of PUMA's goods are produced in China, and the United States will levy large taxes on these goods at any time, which makes us have to fashion The business unit aims to transfer its production activities in China to other Asian countries, such as Vietnam, Indonesia, Cambodia and Bangladesh. " Bjorn Gulden explained. 　　

Earlier this month, US President Trump instructed US trade officials to impose additional tariffs on US $100 billion worth of Chinese imports, and said this was a major measure taken by the White House to recover the damage to US farmers and manufacturers caused by the US $50 billion worth of Chinese import tariffs. This makes some fashion consumer goods such as clothing, shoes and shoes likely to be included in the tariff list.

"Our purchasing staff have been looking for alternative factories in the past two or three months," said Bjorn, CEO of Puma Gulden said at the press conference, "The production transfer may take even 12 months, which will give many people a headache."

He also said that the tariff policy of the United States is likely to lead Puma to eventually raise prices or accept lower profits. 　　

However, since Puma is far from the United States market Therefore, they must wait until they see what impact Trump's policies have on the market before taking the above measures to ensure that they can still obtain high enough profits.

Puma is smaller than competitors Nike and Adidas; Compared with other competitors, Puma is less difficult to produce. In the past few years, Puma has transferred a small part of production from China due to the rising labor costs in China.

But if Trump hopes to bring more commodity production lines back to the United States through the trade war with China, he may have miscalculated. On this point, Bjorn Gulden has also refuted the view that higher tariffs may lead to increased production in the United States.

The imposition of large tariffs on China is a serious violation of international trade rules, and Trump has been criticized by some major economic organizations in the world, including the Federal Reserve, the World Trade Organization, the International Monetary Fund and other tariff measures. Since Trump's attitude towards the policy is not very clear, it is not clear what he will do next or whether he intends to relax tariffs. But no matter which way, for these market As a brand in an important place of origin, I'm afraid the next days will not be too easy.