beijingwalker
ELITE MEMBER
- Joined
- Nov 4, 2011
- Messages
- 65,195
- Reaction score
- -55
- Country
- Location
Adidas Takes Hit From Boycott in China, Once Seen as a Growth Engine
The sportswear company, along with other Western apparel brands, continues to suffer from a Chinese consumer boycott
By Georgi Kantchev and
Updated Nov. 10, 2021 7:32 am ET
BERLIN—In March, Adidas AG called China its biggest growth engine, with the German sportswear company aiming to win over Gen Z consumers there and use the Beijing 2022 Winter Olympics to showcase its brand.
Now China has become a liability.
Sales at Adidas were stunted this quarter, thanks to a slump in Greater China.
Overall revenue in the third quarter grew just 3% to 5.752 billion euro. Executives said pandemic-related lockdowns and supply chain issues in China caused overall revenue growth to be reduced by about 600 million euro this quarter. In China, specifically, sales declined 15%.
Adidas stock was down more than 5% in trading midday on Wednesday.
Nike and other Western brands that have refused to source cotton from China’s Xinjiang region, due to allegations of forced labor among the Uyghur population in that area, which prompted nationwide boycott of these western brands by the Chinese consumers.
www.wsj.com
The sportswear company, along with other Western apparel brands, continues to suffer from a Chinese consumer boycott
By Georgi Kantchev and
Updated Nov. 10, 2021 7:32 am ET
BERLIN—In March, Adidas AG called China its biggest growth engine, with the German sportswear company aiming to win over Gen Z consumers there and use the Beijing 2022 Winter Olympics to showcase its brand.
Now China has become a liability.
Sales at Adidas were stunted this quarter, thanks to a slump in Greater China.
Overall revenue in the third quarter grew just 3% to 5.752 billion euro. Executives said pandemic-related lockdowns and supply chain issues in China caused overall revenue growth to be reduced by about 600 million euro this quarter. In China, specifically, sales declined 15%.
Adidas stock was down more than 5% in trading midday on Wednesday.
Nike and other Western brands that have refused to source cotton from China’s Xinjiang region, due to allegations of forced labor among the Uyghur population in that area, which prompted nationwide boycott of these western brands by the Chinese consumers.
Adidas Takes Hit From Boycott in China, Once Seen as a Growth Engine
Adidas was hurt by a consumer boycott that began earlier this year after the company, as part of a consortium of Western brands, raised concerns about forced-labor allegations in China’s Xinjiang region.
www.wsj.com
