Adidas begins construction of new intelligent operation center in Suzhou

Date: 22 Oct 2020

Adidas kicked off construction of its highly automated and intelligent operation center in Suzhou Industrial Park recently in East China's Jiangsu province, signaling the world's leading sportswear producer's strong commitment to the long-term growth in China.

Jason Thomas, general manager of Adidas Greater China, said the start of construction of Adidas' new intelligent operation center in China represents another key milestone for the company and its ability to serve the future needs of Chinese consumers.

"With more and more Chinese now prioritizing health and fitness, this strategic upgrade underscores our positive outlook for the China market and our strong commitment to long-term growth," Thomas said.

Situated in Suzhou and occupying 130,000 square meters, the new center aims to maximize product availability and Adidas' ability to respond to future consumer demand.

For example, it will further enhance Adidas' overall supply chain competencies, playing a key role alongside the company's other distribution centers in building a more comprehensive logistical network in the country and other markets, according to the company.

China is one of Adidas' largest and fastest-growing markets globally. The company owns and partner-operates more than 12,000 stores in the country.

The global spread of the coronavirus during the first half of 2020 has led to a significant number of store closures and traffic reduction within the remaining stores, according to the company's first half year report for this year.

Its online channel, which remained fully operational in most parts of the world throughout the first half of the year, has seen 67 percent growth.

But its e-commerce growth couldn't offset the decline in the physical channels. As a result, the company's revenues decreased 26 percent in the first six months of 2020, reflecting a 26 percent sales decline at brand Adidas and a 27 percent decline at Reebok.

Sales in Asia-Pacific decreased 31 percent to 2.76 billion euros ($3.25 billion).

Source: China Daily

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