adidas to shift some production from Asia in robot revolution
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adidas announced plans to revolutionize the way it manufactures goods to speed up production and allow shoppers to customize more shoes and clothes, to help it accelerate sales and profit growth over the next five years.
The German sportswear firm, which has been losing ground for years to fast-growing rival Nike, said it was testing automated production units that would allow it to shift manufacturing from Asia closer to consumers and even into stores, where shoppers will be able to personalize their goods.
“We will bring production back to Europe. We will bring production back to where the main markets are,” said Chief Executive Herbert Hainer, adding the current six weeks it took to ship from Asia to Europe was too long.
Questions & Answers
Q.What is the main reason adidas is changing its manufacturing strategy?
What is the main reason adidas is changing its manufacturing strategy?
Adidas is revolutionising its manufacturing to speed up production and allow greater customisation of products. This strategy aims to accelerate sales and profit growth over the next five years, especially as they have been losing ground to rival Nike.
Q.Where does adidas plan to relocate its production?
Where does adidas plan to relocate its production?
Adidas plans to shift manufacturing from Asia closer to its main consumer markets, specifically back to Europe. CEO Herbert Hainer stated they would bring production to where the main markets are, potentially even into stores.
Q.How will these changes benefit customers?
How will these changes benefit customers?
Customers will benefit from faster access to products and the ability to customise shoes and clothes more easily. The company aims to reduce the current six-week shipping time from Asia to Europe, leading to quicker delivery.
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