Adidas expects drastic footwear sourcing shift from China to Vietnam
Category: #retail  By Saif Ali Bepari  Date: 2018-05-10
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Adidas expects drastic footwear sourcing shift from China to Vietnam

The Chief Executive Officer of Adidas, reputed footwear brand, has reportedly stated that he expects a significant shift in the firm’s sourcing of footwear from China to Vietnam. As per reliable sources, he dismissed any concerns regarding the probable imposition of trade sanctions by the U.S. government on the shoes manufactured in China.

While addressing an annual meeting of shareholders, CEO Kasper Rorsted was quoted stating that the factories in Vietnam manufactured around 44 percent of the total volume of Adidas’ footwear in 2017. Apparently, these numbers are significantly higher given the fact that suppliers in Vietnam had produced approximately 31 percent of Adidas’ shoes in the year 2012. On the other hand, Chinese enterprises had provided nearly 19 percent footwear in 2017, down from more than 30 percent in 2012.

Speaking on the prospective sourcing options, Rorsted was quoted stating that ruling out the continuance of the ongoing trend would not be feasible at the moment. He further stated that China would continue to be an important market to procure the firm’s footwear despite the probable trade embargos.

For the record, in March 2018, the Trump administration had slapped trade sanctions on China which included charge restraints on tariffs and investment, affecting USD 60 billion worth of products.

Commenting on the effect of new U.S. tariffs across the nation’s various business verticals, Rorsted noted that there was still a lot of uncertainty and numerous firms might be hit by import duties, that would eventually impact the competitors of Adidas.

Reportedly, another multinational sportswear giant, Puma, had released an official statement last month in which the company mentioned that it plans to move some production from China to other Asian markets. Regarded as one of the prominent rivals of Adidas, the Germany based firm would decide its future course of action as it anticipates the imposition of U.S. tariffs on China.



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Saif Ali Bepari

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Saif Ali Bepari

Saif Ali Bepari currently works a content writer for Market Size Forecasters, Algosonline, and numerous other platforms. A Computer Science graduate who has a zest for writing over coding, he has previously dabbled into technical and creative writing. He now pens down...

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