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

    2018/4/26 8:59:00 121

    TariffsPumaSino US

    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 on the previous day that it would impose additional tariffs on Chinese products of 100 billion US dollars, the German movement.

    clothing

    Brand Puma (Puma) had to take urgent measures to deal with the trade war.

    In April 24th, the chief executive of the brand, Bjorn Gulden, said in a conference call that the company is studying contingency plans to formally announce the announcement in the United States.

    footwear

    When products are subject to tariffs, some production activities are rapidly pferred from China to other Asian markets.

    "Puma's business in China has been very strong, especially in 2018, when its first sales increase was more than expected.

    But at present, 1/3 of PUMA's products are produced in China, and the United States will impose large taxes on them at any time.

    fashion

    The objectives of the business sector will be pferred to other Asian countries in China, such as Vietnam, Indonesia, Kampuchea and Bangladesh.

    Bjorn Gulden explains.

      

    Earlier this month, US President Trump instructed us trade officials to impose additional duties on US $100 billion in Chinese imports, and said that this is a major measure taken by the White House to restore the US $50 billion import tariff to farmers and manufacturers in the United States.

    This makes it possible for some fashion consumer goods such as clothing and footwear to be included in the tariff list.

    "Our purchasing staff have been looking for alternative factories in the past two or three months," Puma chief executive Bjorn Gulden said at a press conference. "The pfer of production can take 12 months or even a month, and this will give many people a headache."

    He also said that the US tariff policy is likely to cause Puma to eventually raise prices or accept lower profits.

      

    However, because Puma is far from the United States.

    market

    Leaders, so they must wait until they see what the impact of Trump's policies on the market will take to ensure that they can still get enough profits.

    Compared with competitors Nike and Adidas, Puma has a smaller scale, and compared with other competitors, Puma has less production.

    In the past few years, due to the rising labor costs in China, Puma has shifted a small part of its production from China.

    But if Trump hopes to bring more production lines back to the us through trade war with China, it may be wrong.

    In this regard, Bjorn Gulden has also refuted the idea that higher tariffs may lead to increased US production.

    The imposition of heavy tariffs on China is a serious violation of international trade rules, and Trump has been criticized by the world's major economic organizations including the Federal Reserve, World Trade Organization and IMF.

    Given that 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, these are China.

    market

    As a brand of important origin, I'm afraid the rest of the day will not be too good.

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