The company wants to adapt its products in China more closely to the local market in the future.
(Photo: Reuters)
London Sporting goods manufacturer Adidas wants to address its problems in the Chinese market with a greater focus on local conditions. The Dax group is planning more patriotic product lines for the People’s Republic, combining international design with traditional Chinese culture.
Adidas plans to design at least 30 percent of clothing sold in China locally by next year, country manager Adrian Siu told the Financial Times. Before the crisis, the proportion was in the low single-digit percentage range.
In addition, Adidas plans to expand cooperation with Chinese athletes and to relocate a larger part of the production to China in order to be able to react more quickly to fashion trends. According to experts, this could increase the costs. Labor costs are higher in China than in Vietnam, Indonesia or Cambodia.
In addition to high inflation and the abrupt end of the cooperation with US rapper Kanye West, Adidas recently also had to deal with problems in China. Like its competitors Nike and Puma, the company had long suffered from the fall in consumption caused by the strict corona measures in China.
In addition, there has been tension between the Western world and China over human rights for some time, which has already led to calls for a boycott of Western brands in the country. In addition, competition from Chinese clothing brands is growing. Not least because of the China problems, Adidas is threatened with an operating loss in the current year.
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