Ordering cycles throughout the supply chain are being pushed forward by between three and five months, depending on the products. The current supply chain challenges are creating real or potential product shortages that are leading vendors to place earlier and bigger orders with the factories to secure sufficient supplies for the next seasons. For this reason, they are asking their retail partners to place their orders earlier, in line with a process that big brands such as Nike and Adidas have been following for several years.
The retailers themselves are competing with one another by ordering earlier bigger quantities of certain products - especially shoes and bicycles - to refill their shelves or to ensure that they will not be depleted. Incidentally, their customers are being advised to go in the same direction, doing their Christmas shopping earlier than usual to avoid shortages.
Maritime transportation and port congestion are currently causing the biggest headaches in trying to cope with the increased post-Covid demand. According to Li & Fung, it will take between nine and 12 months to break the congestion cycle, leading freight costs to decline by between 50 and 60 percent from the current high levels. In the meantime, fear of congestion is leading to more over-ordering, which tends to perpetuate congestion, says Panjiva, the supply chain research arm of Standard & Poor’s Global Market Intelligence, warning about “panic-buying” by retailers.
We wonder what will happen to the dates of big trade shows like ISPO Munich or Outdoor Retailer, which have been taking place toward the end of January. A small national show like Norspo in Oslo, whose next edition was scheduled for Jan. 9 and 10, has been canceled already, as its organizers could not recruit a sufficient number of exhibitors. In Germany, Sport 2000 has shifted its in-house fair for “global brands” from January to Nov. 28-30, focusing mainly on footwear and apparel for running and fitness, at the exhibitors’ request. Its hardgoods fair for winter sports equipment, which normally takes place in mid-March, will run on Feb. 15 and 16. Intersport Germany is understood to be planning a similar move.
Meanwhile, the 109th edition of ÖSFA, Austria’s most important sporting goods show, which was originally scheduled for Feb. 22-24, 2022, is going be held four weeks earlier. The organizer, Brandboxx Salzburg, has set Jan. 18-20 as the new dates, justifying the change with the ongoing impact of the Covid-19 pandemic on supply chains: Although the warehouses for the next winter season are still well-stocked, there could be shortages, especially for touring and cross-country skis.
