**Nike’s Slump Was Foretold by Its Key Taiwanese Shoe Supplier**
**Nike Inc.**’s recent slump in sales was hinted at by its key Taiwanese shoe supplier, **Pou Chen Corp**., as early as last October. In a conference call with investors, Pou Chen’s chairman, **Tsai Cheng-Ta**, warned that Nike’s orders were slowing down and that the company was likely to see a decline in revenue in the coming quarters.
Tsai’s warning was based on the fact that Pou Chen is one of Nike’s largest suppliers, producing over 100 million pairs of shoes for the company each year. As such, Pou Chen has a good sense of Nike’s production and sales trends.
Nike’s sales have been declining since the beginning of the year, and the company recently reported a 4% drop in revenue for the third quarter. The company has been struggling to compete with rivals such as **Adidas** and **Under Armour**, which have been gaining market share in recent years.
Nike has also been facing challenges in China, its largest market. The company’s sales in China have been declining due to the country’s slowing economy and rising competition from local brands.
In addition to these external challenges, Nike has also been grappling with some internal issues. The company has been criticized for its lack of innovation and its slow response to changing consumer trends.
Nike’s slump is a reminder that even the most successful companies can face challenges. The company will need to make some changes to its strategy in order to regain its footing in the market.
Here are some of the key takeaways from Pou Chen’s warning:
* Nike’s sales were slowing down as early as last October.
* Pou Chen is one of Nike’s largest suppliers, so it has a good sense of the company’s production and sales trends.
* Nike is facing challenges from rivals such as Adidas and Under Armour.
* Nike is also facing challenges in China, its largest market.
* Nike’s slump is a reminder that even the most successful companies can face challenges.
Nike will need to make some changes to its strategy in order to regain its footing in the market..
