Adidas Pledges to Boost Investment in China

By Barnaby Lofton, June 3, 2020

0 0

Despite a decline in revenue growth from previous years, Adidas is keeping their foot on the pedal for an expansion in the Middle Kingdom. 

While some companies are looking to shift production away from China, China Daily reports that Adidas China has “pledged to invest more to enhance its supply chain capacity in China.” During the Suzhou Online Dialogue on Global Industrial Chain Collaboration last month, Adidas signed an agreement to establish a new automated distribution center in China for its Asia-Pacific market. 

Currently, the company has three logistic centers around the country: two in Suzhou and one in Tianjin. The newest distribution center which opened last November is not at full operational capacity but is able to produce more than 50 million products annually. When full operational capacity is reached, the center is projected to double its outcome. 

However, like many other retailers, Adidas didn’t emerge out of the coronavirus pandemic unscathed. During the first quarter of the year, the sportswear company had to “shutter a significant number of its stores” globally, 70% were still closed as of April. CEO Kasper Rorsted remains optimistic about the long-term prospects, and a report by Kantar echoed the same sentiments: 

“We have reasons to believe that the epidemic will not change the upward trend of the sports and fitness industry development. It is believed that when the haze of the outbreak disappears, there will be more consumers joining the public fitness program.”

According to Euromonitor, in 2019 Adidas took 19.5% of the total apparel and footwear market retail sales in China, followed by Nike at 19.0%, Anta at 11.1% and Li-Ning at 6.1%. 

[Cover image via China Daily]

more news

My Suzhou: A Petits Pas Daycare Center Founder Caroline Yang

A Petits Pas childcare center for expat families.

Meet the Internationals Shaking Things Up in the Middle Kingdom

These 10 individuals have found both success and hardship in China, and their stories breed inspiration and dreams of new beginnings.

Mutual Funds or Exchange-Traded Funds, Which Are Best for You?

Here are the similarities and differences between mutual funds and exchange-traded funds (ETFs).

Here's Why Silver is a Unique Investment Hedge in 2020

In today’s uncertain world, finding ways to minimize risk is even more critical, and the main reason these metals are drawing more attention.

Are Companies Leaving China? Here's What AmCham President Says

We reached out to Beebe to hear his thoughts on the business outlook for companies in China and the 'China +1' strategy.

11 Mother’s Day Gifts to Show Your Love

With Mother’s Day upon us, we’ve rounded up some great gift ideas for all the hardworking supermoms out there.

Pandemic Pricing: Advice for Investing in Volatile Markets

We called on finance veterans based in Asia to provide sound advice for investors navigating this turbulent period.

CNBC's Arjun Kharpal Talks Big-Name Interviews and Tech Politics

We spoke with Kharpal about the tech world’s response to COVID-19 and one headline that’s been out of sight recently.

0 User Comments

In Case You Missed It…

We're on WeChat!

Scan our QR Code at right or follow us at ThatsSuzhou for events, guides, giveaways and much more!

7 Days in Suzhou With

Weekly updates to your email inbox every Wednesday


Download previous issues

Never miss an issue of That's Suzhou!

Visit the archives

Get the App. Your essential China city companion.