Trade Policy Risks Force Athletic Apparel Brands to Reshape Supply Chains

What if tariffs on Asian apparel manufacturing increase by 25 percent over six months?

Simulate the impact of a 25 percent tariff increase applied to apparel sourced from key Asian manufacturing hubs (China, Vietnam, Indonesia). Model how this would affect product costs, landed prices, and margin impact across Nike, lululemon, and Under Armour. Evaluate the feasibility of shifting 15-30 percent of production volume to alternative regions (Central America, India, Eastern Europe) and the associated lead time and quality adjustments required.

What if supply chain regionalization reduces average lead times by 20 percent but increases unit production costs by 8 percent?

Model a scenario where companies successfully shift 40 percent of production to regional facilities closer to end consumers. This reduces air freight needs and improves demand responsiveness (lower lead times). However, regional facilities operate at higher labor costs and smaller scale than centralized Asian hubs. Evaluate the net impact on total landed cost, inventory carrying costs, service levels, and ability to respond to demand volatility across markets.

What if geopolitical tensions restrict access to key suppliers in a critical region for 8-12 weeks?

Simulate a supply disruption scenario where tariffs, trade restrictions, or geopolitical conflict temporarily blocks or severely constrains manufacturing capacity in China or Southeast Asia for two to three months. Model how Nike, lululemon, and Under Armour would absorb this shock using existing backup suppliers, inventory buffers, and alternative sourcing arrangements. Evaluate the service level impact, inventory costs, and need for expedited freight to maintain fulfillment.