Blog: Adidas winning World Cup race
Leonie Barrie | 5 July 2010
An exclusive interview with Adidas Group CEO Herbert Hainer was the undisputed highlight on just-style last week, with a wide-ranging discussion that covered everything from the company's investment in this summer's World Cup, to sourcing, currency effects, and its vision for the Reebok brand.
On the sourcing front, the boss of the sporting goods firm says it has enough diversity in its supply chain to withstand cost increases in China. Hainer says Adidas has limited its reliance on China to less than 40% of products sourced, so it can balance rising production costs and currency effects with cheaper countries like Vietnam and Cambodia.
For western brands and retailers sourcing from Bangladesh, caution is also key as production begins again after orders were caught up in recent violent protests by garment workers. But unless the issues at the core of this long-term and simmering unrest - an increase in the national minimum wage and better working conditions - are addressed, the country seems set to remain a volatile supply base.
Not surprisingly, pressure is mounting on the industry to reach agreement in the latest round of pay talks which are due to conclude at the end of July.
On the retail front, American Eagle Outfitters is taking its 77kids brand from the internet to the high street for the first time, with brick-and-mortar stores opening from next month and a line of clothing launching for babies up to 18 months old. Seven 77kids stores will open their doors in the US from July onwards.
Meanwhile Australian clothing firm Billabong International is to expand in Canada after agreeing to buy West 49 Inc, one of its retail partners in the country, for CAD99.0m (US$93.5m). The move will raise the profile of its brands in Canada's action sports market as well as increase wholesale opportunities.
And JC Penney Company has taken another step in differentiating itself from its competitors by joining forces with footwear maker Aldo Group, which will open shop-within-a-shop concepts in 600 of its department stores. From the autumn, JCPenney will become the exclusive US department store retailer for Aldo's Call It Spring brand.
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...
Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....
Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...
- Outlook 2017 – What next for apparel sourcing?
- $1.7bn package to boost Pakistan clothing exports
- Mexico riots hit apparel retailers and shipments
- Is China about to burst its apparel trade bubble?
- Outlook 2017 – What else is the industry watching?
- MAS Holdings planning second industrial park
- M&S quality focus finally lifts clothing sales
- Aéropostale to reopen 500 stores across the US
- JC Penney latest retailer to shutter stores?
- Sri Lanka on track to regain EU GSP+ benefits
- Global apparel markets: product developments and innovations, October 2016
- Anti-odour clothing: fresh fashion for an active lifestyle
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar