German sporting goods company Adidas will close its only factory in China in an effort to improve efficiency.
An Adidas spokesperson said the factory in Suzhou will shut down at the end of October resulting in the loss of 160 jobs, as part of the company’s business restructure in China.
Adidas will continue to source products from China through Chinese manufacturers. Currently, it has 300 subcontractors in the mainland.
Sportswear retailers are facing tough economic times in China as competition heats up. Nike, which is the largest market share holder in China’s sporting goods market, has reported a sales decline of 3.9 per cent to US$694 million in June in its operations in the mainland, Taiwan and Hong Kong.
Chinese sportswear brand Li Ning also suffered a 65 per cent slump in profit last year while Peak Sport Products issued a profit warning for this year citing sluggish demand as the reason.
GB
