Blog: Leonie BarrieWill Adidas realign its strategy?

Leonie Barrie | 27 October 2014

Speculation emerged last week that a group of investors is planning to bid for Adidas Group's Reebok unit, and that a likely sale would enable the German sportswear giant to realign its strategy as a fitness and lifestyle brand.

The group is said to be preparing an offer worth $2.2bn - a long way short of the $3.8bn paid by Adidas for Reebok in 2006. While some believe the deal may appease Adidas investors looking for some quick and easy liquidity, others note there are also signs that Reebok's fortunes may be picking up.

Problems are continuing to escalate for troubled retail giant Tesco, which has reported a 92% drop in first-half profit, a wider than expected accounting error, and the departure of its chairman. But can Tesco now draw a line under its darkest days, and how fast a turnaround, if any, is likely?

In Cambodia, at least eight workers were injured at the Nishiku Enterprise clothing factory after part of the ground floor collapsed. An initial risk inspection suggests structural issues were to blame.

The incident occurred as a new report said transparent reporting of garment factory compliance in Cambodia is continuing to help to improve conditions for workers

And "a lot of work still remains to be done" to improve worker rights and factory safety in Bangladesh's ready-made garment and knitwear industry, according to the latest stakeholder review into government efforts.

Separately, a World Bank report also notes that more work is needed to reform Bangladesh's apparel industry if the country's exports are to grow.

New figures released in the UK show that productivity - and wages - in the textile, clothing and leather goods sector is lagging that of other manufacturing industries, as it struggles to recover the strong growth seen prior to the economic downturn.

Leading international brands including H&M, Eddie Bauer, The North Face and Marmot have committed to using responsibly sourced and traceable down in their products. The North Face has committed to 100% certified and responsibly sourced down across all lines by 2017, while others say they will introduce it into their products from autumn 2015.

Spanish fashion retailer Mango might have its roots firmly in Europe, but is on a growth trajectory globally. just-style spoke with managing director Enric Casi and Jose Gomez, VP of international business development, about what the future holds and the challenges of operating in today's changing retail environment.

And as innovation becomes something of a buzz-word across the apparel industry, David Birnbaum warns there are lessons to be learned as firms move to set up in-house innovation centres.


Ethiopia unrest a sourcing risk?

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Asia facing up to increased competition

Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...


Cambodia raises garment worker wages

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Sportswear initiatives start to take shape

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