Steven Madden C.E.O. Says It Is Moving Production Out of China

Published On Nov 8, 2024, 1:15 AM

Steve Madden plans to reduce its production in China by nearly half in anticipation of potential higher tariffs under President-elect Trump's promised trade policies. The company aims to shift production to countries like Cambodia, Vietnam, Brazil, and Mexico, though it faces challenges as over 70% of its U.S. imports still come from China. The CEO stated that while they are moving quickly to implement this plan, shifting manufacturing locations poses logistical challenges and may not revert production to the U.S.

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Steve Madden's strategy to reduce dependence on China is proactive amid potential tariff increases. However, the logistical complexities of shifting production to other countries may impact operational efficiency and profit margins, potentially leading to short-term volatility. If the company successfully adapts to these changes, it may gain a competitive advantage in the long run.

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