The iconic three stripes of Adidas are recognised worldwide. But have you ever wondered where Adidas shoes are made or how the brand manages its vast global distribution? Let’s explore the intricate workings of Adidas’s production and distribution systems, drawing insights from their 2022 annual report.
Adidas Production: Where Are the Shoes Made?
When you slip on a pair of Adidas sneakers, it’s likely they’ve traveled quite a distance. In 2022, Adidas outsourced almost 100% of its production to independent manufacturing partners. These partners, equipped with detailed specifications from Adidas, excel in high-volume production of footwear, apparel, and accessories.
Footwear Production Landscape
Indonesia stood out as the largest footwear sourcing country for Adidas in 2022, accounting for 34% of the total volume. Vietnam and China followed closely, representing 32% and 16% respectively. In total, a staggering 97% of Adidas’s footwear was produced in Asia in 2022. These manufacturing partners produced approximately 419 million pairs of shoes in that year alone.
Adidas Production Overview by Product Category
|Product Category||Largest Sourcing Country (2022)||Production Volume (2022)||Notable Fact|
|Footwear||Indonesia (34%)||419 million pairs||97% produced in Asia|
|Apparel||Cambodia (22%)||482 million units||91% sourced from Asia|
|Accessories & Gear||China (28%)||117 million units||72% produced in Asia|
Apparel Production Insights
For apparel, Asia again dominated the production landscape, contributing to 91% of the total apparel volume in 2022. Cambodia took the lead as the largest sourcing country, with Vietnam and China not far behind. The total apparel units produced in 2022 equaled the previous year, standing at 482 million units.
Relationships with Independent Manufacturing Partners
|Category||Total||Footwear||Apparel||Accessories and Gear|
|Number of Manufacturing Partners||117||25||62||33|
|Average Years as Partner||20.0||21.5||19.6||19.5|
|Relationship < 10 years||28%||40%||24%||27%|
|Relationship 10 – 20 years||35%||24%||37%||37%|
|Relationship > 20 years||37%||36%||39%||36%|
Accessories and Gear: Where Are They Made?
When it comes to accessories and gear, China remained the primary sourcing country in 2022, followed by Turkey and Pakistan. The total sourcing volume for accessories and gear was approximately 117 million units.
Distribution: Getting Adidas to You
Adidas’s distribution strategy in 2022 was marked by process automation, system upgrades, and distribution center capacity expansion. These initiatives improved e-commerce service levels, offering more delivery choices and broader product availability.
The brand operates 66 distribution centers globally, ensuring efficient service to its worldwide demand. These centers span across all markets, with a notable presence in EMEA, Greater China, Asia-Pacific, North America, and Latin America. Of these, 23 are owned and operated by Adidas, while 43 are managed by logistics partners. This setup provides operational flexibility and agility, ensuring that Adidas products reach customers and consumers promptly and efficiently.
Overview of Adidas’ Global Distribution Centers
|Total Distribution Centers||66|
|Owned and Operated by Adidas||23|
|Owned and Operated by Logistics Partners||43|
|Serving All Channels||32|
|Channel- or Service-Specific Set-Up||34|
|Testing Dedicated Returns Concept||3|
Distribution Centers by Region:
|Region||Number of Distribution Centers|
Adidas’s commitment to quality, innovation, and efficient distribution is evident in its global operations. By partnering with expert manufacturers and leveraging a robust distribution network, the brand ensures that its products are not only top-notch but also accessible to fans worldwide. As consumers, understanding the journey of Adidas products from production facilities to our homes adds another layer of appreciation for the brand.
Source: Adidas Group Annual Report 2022