Retailing, Franchising, and Consumerism Business Intelligence in China

Adidas May Cut Production In China

According to reports in local media, Herbert Hainer, president of Adidas, recently said that as the wage level in China had been increasing, to reduce the production costs, Adidas plans to transfer a part of its production and purchase from China to other countries.

Questioned about this, the response of Adidas Suzhou was very cautious, saying that they did not have any idea about Adidas's reduction of its production in China due the rise of the labor costs in this country.

However, an insider from Adidas China confirmed that the company was discussing the possibility of transferring its production bases in China to other countries step by step and it had sent staff to investigate the Southeast Asia market.

At present, about 50% of Adidas' products are made in China and the company has 264 factories across China. In recent years, the costs in China's shoe industry have been constantly increasing and the rate of increase has exceeded the expectations of Adidas. Therefore, the company plans to seek cheaper sites for its production bases.

At the same time, reports said that other footwear giants like Nike and Puma also preparing to transfer parts of their production and purchase out from China and Nike required some Chinese footwear companies to relocate their production bases to India.

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