Adidas, renowned for its iconic three stripes, has a rich history that spans from the athletic tracks to the fashion runways. Today, Adidas is not just a brand; it’s a symbol of quality and innovation in sportswear.
In this article, we delve into the transformation of Adidas’s manufacturing strategies, focusing on their shift from Europe to Asia, and why this move has become a game-changer for the global sportswear giant.
We are also covering the sensitive issues of counterfeit, fake products and analysing 2023’s Adidas strategy report to disclose where their factories are located, providing deeper insights into their current suppliers and manufacturing countries.
Historical Context: Adidas in Europe
Adidas was founded in 1949 in the small town of Herzogenaurach, Germany, by Adi Dassler. Initially focused on soccer and track shoes, Adidas soon became synonymous with high-quality European manufacturing.
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The meticulous craftsmanship and the use of premium materials like leather and suede distinguished Adidas products.
Adidas’s Asian Pivot
Over the years, Adidas has gradually shifted its manufacturing to Asia, with China as its first country. This video provides a comprehensive overview of Adidas’s global manufacturing strategies, with a particular focus on its operations in Asia.
It discusses the strategic reasons behind its pivot to Asian manufacturing, and narrows down to the exact locations where Adidas is having most of their factories.
Here are some topics:
- Detailed look at Adidas’s operations in Vietnam;
- Challenges posed by counterfeit products;
- Insights on navigating the Asian manufacturing landscape;
- How to identify legit factories;
China + 1 strategy
Lastly, they also implemented a China Plus One strategy with more Asian countries besides China such as India and Vietnam.
Driven by rising labor costs and trade tensions, Vietnam has been getting more and more focus from Adidas on a manufacturing perspective.
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According to 2023’s strategy report from Adidas, Vietnam has become a primary hub for Adidas, contributing significantly to both footwear and apparel segments. Vietnam’s strategic location, skilled labor force, and efficient infrastructure have made it an ideal choice for Adidas’s manufacturing needs.
Adidas in southern Vietnam
As of July 2022, the company boasted 51 primary suppliers in Vietnam, employing over 190,000 local workers. These facilities are strategically situated in major manufacturing hubs such as Ho Chi Minh City, Binh Duong, and Dong Nai.
The choice of southern Vietnam for Adidas’s manufacturing bases is largely influenced by the region’s efficient ports, including those in Ho Chi Minh City and Vung Tau and the abundance of skilled workers enhancing both quality and production efficiency.
Looking ahead, Adidas plans to expand its production capacity in the area, with a focus on utilizing a higher ratio of local materials, further integrating into the Vietnamese economy and optimizing its supply chain efficiencies.
Counterfeit Goods
Despite the advantages, Adidas faces challenges like counterfeit products, especially in Asian markets.
Adidas and local governments are combating the proliferation of fake goods, which not only affects brand reputation but also consumer trust.
Adidas’s Strategic Evolution
By embracing change and moving its production to Asia, Adidas has not only optimized its operations but also positioned itself closer to some of the fastest-growing markets in the world.
If you’re looking to delve into the world of footwear manufacturing, particularly in a foreign country, employing a local sourcing agent can be a highly effective strategy. Sourcing agents possess extensive local market knowledge and industry contacts, which are invaluable for navigating complex manufacturing landscapes.
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Ultimately, sourcing agencies act as your on-the-ground liaisons, conducting due diligence, negotiating contracts, and ensuring that production meets your specifications.
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Source: Vietnam Insider