Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

How much do you think it costs to make a pair of Nike shoes in Asia?

twitter.com

Post reply on HN
Print view View original

11–20 of 1001 posts

Re: How much do you think it costs to make a pair of Nike shoes in Asia?

#11

Post by bryanlarsen »

greatgib wrote: post #5

All around the "developed world", the shop/retailer/supermarket/distribution part of the price of a product is around 50%. Whatever the product or its price. I'm wondering if part of our issue with crazy inflated prices despite low margin for industry and manufacturing actors is not because of this abused margin for retailers. That have also a huge power as it is difficult to negotiate when you depend on your product…

> retailer part of the price of a product is around 50%

Not according to the article. The retail price is $100 for a shoe they buy from the manufacturer for $50, but $24 of that $100 is "discounts". Therefore the average price sold at is $76, making the retail part of the price 1/3.

Re: How much do you think it costs to make a pair of Nike shoes in Asia?

#12

Post by xienze »

ravelantunes wrote: post #6
Clubber wrote: post #3

>The second thing we see is that Asian manufacturing in Asia produces US jobs. You go to Footlocker to buy a pair of $100 shoes because you can afford them. This creates jobs for the Footlocker employees, Nike designers, marketing teams, and other US people throughout this chain. In all fairness, most of those jobs would still exist if manufacturing was brought onshore. The fact that they were manufactured in Asia ma…

The author’s point is that the lower cost of goods coming from Asia results in increased demand, which then generates more jobs in the post-manufacturing part of the chain.

That completely discounts the strategic value of self-sufficiency. I mean, why not outsource ALL manufacturing and agriculture if someone else can do it cheaper? Surely that wouldn't come back to bite us, right?

Re: How much do you think it costs to make a pair of Nike shoes in Asia?

#13

Post by bitshiftfaced »

JSR_FDED wrote: post #4

It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.

Isn't that an even more compelling reason to do it, since unemployment is already low? It means more vertical integration, more domestic investment and productive capital.

Re: How much do you think it costs to make a pair of Nike shoes in Asia?

#14

Post by vidarh »

JSR_FDED wrote: post #4

It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.

Indeed, US manufacturing has a higher output now than before outsourcing took off. But it employs far fewer people per inflation adjusted dollar of output. Because the manufacturing that stayed was largely the manufacturing that was so cost-effective to automate that not even third world labor could compete.

Re: How much do you think it costs to make a pair of Nike shoes in Asia?

#15

Post by vidarh »

xienze wrote: post #9
JSR_FDED wrote: post #4

It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.

I think you're missing that the bigger value is having the manufacturing on your home soil instead of depending on being in the good graces of China.

Forcing China to become more independent of exports to the US also means China will care less about being in the good graces of the US. It cuts both ways.

Re: How much do you think it costs to make a pair of Nike shoes in Asia?

#16

Post by jacknews »

JSR_FDED wrote: post #4

It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.

i don't understand the obsession with jobs anyway

people don't want a job, they want money and purpose

most jobs barely deliver either

Re: How much do you think it costs to make a pair of Nike shoes in Asia?

#17

Post by xienze »

vidarh wrote: post #15
xienze wrote: post #9

Earlier quoted context omitted.

I think you're missing that the bigger value is having the manufacturing on your home soil instead of depending on being in the good graces of China.

Forcing China to become more independent of exports to the US also means China will care less about being in the good graces of the US. It cuts both ways.

Except for the whole military superpower thing. The US is actually in a somewhat unique situation compared to other countries.

Re: How much do you think it costs to make a pair of Nike shoes in Asia?

#18

Post by yostrovs »

netsharc wrote: post #8
JSR_FDED wrote: post #4

It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.

I saw a video today on Instagram (from Tiktok), AI generated of course, where rows and rows of people sit at sewing machines sewing shirts, but instead of the typical Asians one commonly expects to see, they're all overweight American-looking people...

https://x.com/damengchen/status/1909288019750011006?t=kO7hvU...

Re: How much do you think it costs to make a pair of Nike shoes in Asia?

#19

Post by banqjls »

jacknews wrote: post #16
JSR_FDED wrote: post #4

It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.

i don't understand the obsession with jobs anyway people don't want a job, they want money and purpose most jobs barely deliver either

[flagged]

Re: How much do you think it costs to make a pair of Nike shoes in Asia?

#20

Post by hello_moto »

xienze wrote: post #9
JSR_FDED wrote: post #4

It’s like people excited about the new datacenter being built in their town, think of all the jobs that will bring they cry. Nobody realizes it takes 6 people to run a datacenter. Bringing “manufacturing back to the US” is a fool’s errand. The future of manufacturing is automation, not jobs.

I think you're missing that the bigger value is having the manufacturing on your home soil instead of depending on being in the good graces of China.

If US doesn’t need X, X will try hard to avoid US (who’s bullying everyone right now).

Eventually US will be in isolation.

Post reply on HN