Adidas, the renowned sporting goods manufacturer, has outlined a new strategy to regain the favor of Chinese consumers and overcome the challenges it has faced in the Chinese market. The German company plans to place a greater emphasis on local conditions, aiming to create more “patriotic production lines” in China. This involves combining international design with traditional Chinese culture, with the goal of designing at least 30% of the clothing sold in China locally by next year. This is a significant increase compared to the low single-digit percentage achieved in the past.

To further strengthen its position in China, Adidas plans to expand its partnerships with Chinese athletes. By leveraging the popularity and influence of these athletes, the company hopes to connect with consumers on a deeper level. Additionally, Adidas intends to relocate more of its production to China, allowing it to respond more quickly to fashion trends in the region. However, experts have raised concerns about the potential rise in labor costs associated with this move, as China’s labor costs are generally higher than in other countries like Vietnam, Indonesia, or Cambodia.

Adidas has faced various challenges in China recently. The decline in consumer spending due to strict COVID-19 policies implemented by the Chinese government has impacted the company, along with its competitors Nike and Puma. Furthermore, tensions between the Western world and China concerning human rights issues have led to calls for boycotts of Western brands within the country. Adding to these difficulties, Chinese clothing brands are gaining prominence and intensifying the competition. As a result, Adidas may face an operating loss this year.

In response to these setbacks, Adidas is adopting a localized approach that integrates Chinese culture into its designs and manufacturing processes. By embracing patriotism and collaborating with local athletes, the company aims to rebuild its brand image and regain the trust and loyalty of the Chinese market.

While it faces significant challenges, Adidas believes that by focusing on local conditions and staying ahead of fashion trends, it can pave the way for success in China. The company aims to prioritize the preferences and demands of Chinese consumers to become a frontrunner in the athletic apparel industry in the country once again.

Useful links:
1. Adidas China Official Website
2. Article: China’s growing middle class a key market for Adidas, Nike