Coronavirus: The Consequences for Sneaker and Streetwear | Grailify
Coronavirus: The Consequences for Sneaker and Streetwear

Coronavirus: The Consequences for Sneaker and Streetwear

Update 22.04.2020

The coronavirus is going into the next round and Nike is stepping up with its efforts. Just a month ago, Nike donated an incredible $15 million. Shortly afterwards, further donations followed and according to the latest reports, a total of 17.5 million US dollars was donated. This means that another 500,000 USD has accumulated in the last few weeks.

In addition, the protective equipment produced by Nike is already being used in several hospitals. Over 20 hospitals are benefiting from personal protective equipment (PPE), including those in Massachusetts, Missouri, Ohio, Oregon and Tennessee.

Update 08.04.2020

Nike is not only donating a lot of money, but is also forging new plans to help alleviate COVID-19. Together with Oregon Health & Science University (OHSU) they present their latest project. And together with the Portland State Medical School, they are producing face shields that medical personnel can wear when they come into close contact with people.

Nike already has the material for this in-house.  The cushioning (Nike Air), once intended for sneakers, is now being used, as well as the cords that were originally meant for clothing.

"Without proper face protection, healthcare workers are at a higher risk of contracting the virus, which could put a significant strain on healthcare workers in the coming months," says Dr. Miko Enomoto, Professor of Anesthesiology and Perioperative Medicine at the OHSU School of Medicine. "The full face shields protect the faces of healthcare workers and extend the length that we can safely use with a surgical or N95 mask.  Nike's generous response to the COVID 19 crisis is helping to build trust and support among healthcare workers so we can safely perform the tasks we were born to do."

Update 06.04.2020

The major sporting goods manufacturer Nike has decided to allocate another 1.6 million US dollars to help local organizations in various cities. The generous donation will help meet needs such as food and medical care in cities and communities around the world, where Nike's own employees work and live.

For Nike, local communities are a very important component. A few days ago, the brand already donated more than 15 million US dollars to actively respond to the current pandemic. The funds raised are mainly for supporting health, social, and humanitarian organizations.

Perhaps that will not be the last donation from Nike. So far, Nike, the Nike Foundation and Nike executives have donated more than 17 million US dollars in total. "Our people and our communities have always been at the center of who we are and what we do," says in a Nike statement.

Update 26.03.2020

Now the sports company PUMA has also come forward and made a statement about the current situation. In the report, the label announces some measures to mitigate the effects of COVID-19. Almost all shops around the world as well as the stores of the wholesale partners have been closed at the moment.

As a result, PUMA naturally had to expect a sharp drop in sales, which they certainly did not anticipate a few weeks ago. In order not to fall into complete economic ruin, PUMA's board members (CEO, CFO and CSO) are waiving 100% of their salaries, while senior managers (such as managing directors and directors) are waiving 25% of theirs. However, this measure will only be implemented in April.

In addition, 100% short-term work has been announced for the branch employees, while the offices will only work 50% of their contractually agreed working hours. Nevertheless, each employee will receive their 100% net salary, which consists of a short-term allowance from the Federal Employment Agency and a voluntary contribution from PUMA.

Update 25.03.2020

The coronavirus is still the number one topic of conversation and the situation simply does not seem to calm down. In India, 1.3 billion people have now been given a curfew and the penalties in Italy have been increased considerably. Anyone who has ever tested positive and still leaves the house will face a five-year prison sentence. In addition, the fines have been increased to 5,000 €.

But besides all the headlines, there is also good news. More and more sporting goods manufacturers are choosing to make a donation to support local, regional, and global communities affected by the COVID-19 pandemic. In an official statement, New Balance announces that the company will donate $2 million USD. Out of the said amount, $200,000 USD will go to the Global Giving Crowdfunding Platform and $100,000 USD to the non-profit organization, No Kid Hungry.

In addition, the Boston Resiliency Fund, Groundwork Lawrence, Good Shepherd Food Bank in Maine and St. Louis Area Foodbank will each receive a $50,000-grant from the New Balance Foundation, reflecting the regional communities, where New Balance employees live and work.

In addition, selected organizations from the New Balance Foundation network will receive a total of $1.5 million USD to support the health, nutrition, education, and physical activity of children and their families.

"We firmly believe it is our civic duty to support our communities in need around the world," said Anne Davis, Executive Trustee of the New Balance Foundation. "As we watch the growing impact of the COVID-19 pandemic, we are inspired by the acts of humanity, kindness, and compassion that have supported each other throughout this health crisis. Based on our values, the NL Foundation will remain generous, flexible and responsive, recognizing the uncertainty created by these challenging times."

Update 19.03.2020

In an official statement Nike has announced that as an immediate response to the current pandemic, it will be donating more than $15 million to support communities.

According to the latest news, Nike Chairman and Co-Founder Philip Knight and his wife Penny, Nike Chairman Mark Parker and his wife Kathy, as well as Nike President and CEO John Donahoe and his wife Eileen are personally donating a total of $10 million to Oregon.

The collected donations will go to various organizations and institutions such as the Oregon Food Bank, Oregon Community Foundation and Oregon Health & Science University. The remaining five million US dollars will be donated by the Nike Foundation. Out of that amount, one million US dollars will go to the global COVID-19 Solidarity Response Fund, which was set up by the United Nations Foundation and the Swiss Philanthropy Foundation.

The Nike Foundation also supports its global partners in Europe, the Middle East, and Africa.

Original Article 18.03.2020

Rarely does news reach every country in the world and become the number one topic of conversation as the coronavirus (COVID-19) did, which is currently raiding the entire planet and creating a state of emergency for which very few are prepared.

It is simply the worst pandemic of our time and we hope that we will not have to experience such a state of emergency ever again. Countries are closing their borders, shops are closing their doors and people are barricading themselves in their own homes to avoid any contact with the outside world, just so they won't be infected with the virus.

COVID-19 Attacks the Economy

But why is the virus actually so bad and what impact could COVID-19 have on the sneaker and streetwear world? Well, most people have probably already realized that those who have been infected with the virus are quarantined, which is supposed to prevent the spread. This is to protect other people among us who, for example, have a weaker immune system or already have a pre-existing illness. The consequences for these people can be fatal.

The world of sneakers and streetwear has also already suffered great damage. Nike, adidas, and the rest closed their stores weeks ago to counter the spread and protect people and employees from infection. But of course, this also has consequences for sales. During this time, consumers can no longer shop at the stores. As a result, the large sporting goods manufacturers as well as the small businesses have had to expect a sharp drop in profits. In February 2020 Forbes reported on the heavy loss of adidas. In China alone, adidas reported a staggering 85% sales loss. In Europe, the virus was far from being as big of an issue as it is now.

After a short time, it was clear that the virus was even more dangerous than expected. The big brands as well as the retailers took some temporary measures in China to counteract the spread and shortly afterwards, took these measures directly all around the world. In mid-March 2020, Nike officially issued a statement on the pandemic and closed additional stores in several countries including Western Europe, the US, Canada, Australia, and New Zealand.

But not only are the brands and shops expecting negative figures, public events and functions are also suffering from the current cause. Jordan Brand, for example, cancelled the Jordan Brand Classic All-Star Game 2020 on March 27th. For 18 years, Jordan Brand's All-Star Game has always been a hip game that features the best high school basketball players. However, this measure is also intended to protect the employees as well as the athletes and the public.

pic by @hanzuying

The Effects on the Sneaker and Streetwear Sector

Even several sneaker releases have been postponed indefinitely due to COVID-19. Normally, most releases appear online, so how come the online releases are also affected by the virus? This is because many production facilities of the big manufacturers had to close—further production and delivery are simply no longer possible. The Air Jordan 6 DMP has been on Foot Locker's release calendar for quite some time. But in the meantime, the retailer has taken the shoes off the list, because it is no longer possible to drop them on time. The planned release date was on March 30th, and now, the sneakers are supposed to be released on April 11th. But even this is only pure speculation at this point.

However, if it stands to push through with a delayed release, we could be very lucky. This is because we are only at the beginning of the global pandemic and don't know what to expect yet in the next few weeks or months.

So friends, stay at home and above all, stay healthy!

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