Japanese sportswear manufacturer ASICS may raise prices if the ongoing conflict in the Middle East persists, according to company president Mitsuyuki Tominaga. Speaking with Nikkei Asia on March 29 in Jakarta, Tominaga warned that continued instability in the region could significantly impact ASICS's cost structure and global supply chains, citing rising material and transportation costs as key concerns [1]. He stated, 'If the situation continues, we will have no choice but to consider price hikes,' highlighting the company's vulnerability to geopolitical risks [1].
To mitigate these risks, ASICS is actively pursuing strategies to diversify its business, including targeting $100 million in sales in Indonesia. Tominaga emphasized Indonesia's strong growth potential and its role as a buffer against external shocks, as the company seeks to reduce dependence on markets more directly affected by Middle East tensions [1].
While no specific price increase has been announced, ASICS remains vigilant and is closely monitoring developments in the Middle East. Tominaga's comments underscore the uncertainty facing global brands amid escalating regional conflicts and the potential for market disruptions [1].
CONCLUSION
ASICS is considering price hikes due to rising costs linked to Middle East instability, though no specific increases have been announced. The company is also expanding in Indonesia to hedge against geopolitical risks. Market sentiment is cautious, reflecting uncertainty for global brands amid ongoing regional tensions.