Adidas sees ongoing shift from China to Vietnam
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Factories in Vietnam produced 44 percent of Adidas footwear volume in 2017, up from 31 percent in 2012.
The chief executive of Adidas expects a shift in its sourcing of footwear from China to Vietnam to continue although he shrugged off concerns on Wednesday about the possible imposition of U.S. tariffs on Chinese-made shoe.
Factories in Vietnam produced 44 percent of Adidas footwear volume in 2017, up from 31 percent in 2012, while Chinese suppliers made 19 percent, down from more than 30 percent in 2012, Kasper Rorsted told a annual meeting of shareholders.
“I’m not going to rule out that this trend is going to continue,” he said, adding: “China is still an important procurement market, irrespective of trade duties.”
Rorsted noted that there was still a lot of uncertainty over what sectors could face new U.S. tariffs. “We might be hit by import duties but it will also apply to our competitors.”
German rival Puma, which makes about a third of its products in China, said last month that it is working on contingency plans to move some production from China to other Asian markets if U.S. tariffs are imposed.
Questions & Answers
Q.What proportion of Adidas footwear production came from China in 2017?
What proportion of Adidas footwear production came from China in 2017?
In 2017, Chinese suppliers produced 19 percent of Adidas' footwear volume. This figure represents a decrease from more than 30 percent in 2012, indicating a notable shift in their sourcing strategy over five years.
Q.What was the chief executive's view on the potential for new US tariffs on Chinese-made shoes?
What was the chief executive's view on the potential for new US tariffs on Chinese-made shoes?
The chief executive acknowledged the uncertainty around which sectors might face new US tariffs. He noted that if import duties were imposed, they would affect Adidas but also apply equally to their competitors, suggesting a shared market impact.
Q.Which other sports brand is considering moving production due to potential US tariffs?
Which other sports brand is considering moving production due to potential US tariffs?
German rival Puma is working on contingency plans to move some production from China to other Asian markets. This consideration comes in response to the possibility of the US imposing tariffs, as about a third of Puma's products are made in China.
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