Downturn for Adidas supplier

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xxxxxxx
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Re: Downturn for Adidas supplier

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armchairlawyer wrote: Sun Aug 19, 2018 5:30 pm
IraHayes wrote: Sun Aug 19, 2018 4:36 pm
The US is enjoying an economic boom atm. Forecasts for the 2nd quarter are predicted to be 4% (JP Morgan).
The Fed’s median projection for this year is a 2.8 percent expansion, short of the Trump administration’s three percent goal. But that would be the best annual performance for the economy since 2005, prior to the housing bust, the financial crisis, and the Obama administration’s ill-fated stimulus attempts.
Maybe you were thinking of Europe?
The USA has had eight quarters of accelerating growth, an astonishing run, but the party's over now. Wall Street commentators (and the Fed) will be the last to know. Look at how consumer discretionary stocks have peaked and consumer staples are rising. The market is always the first to know.
That last bit is nonsense. If that were remotely true, there would be no stock market crashes, only sensible gradual declines well ahead of any market bottom. And the major brokerage houses wouldn't have automatic "sell" levels built in to their software because they would have known the market was going to be dropping well beforehand, according to your theory.
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Re: Downturn for Adidas supplier

Post by IraHayes »

From USA today.
https://amp.usatoday.com/amp/922315002

S&P 500 hits record high.
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Re: Downturn for Adidas supplier

Post by General Mackevili »

IraHayes wrote:From USA today.
https://amp.usatoday.com/amp/922315002

S&P 500 hits record high.
You must be joking, right? America has a racist idiot in the Whitehouse who works for the Russians, and things just couldn't get any worse.

According to all mainstream media and Obama and friends, 4% growth is plain impossible, so any reports that suggest the economy or stock market is doing unbelievably well has to be fake news.





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Re: Downturn for Adidas supplier

Post by IraHayes »

Oh don’t get me wrong... while the news may be good I do believe that the stock market is due a correction. The S & P P/E (price/earnings) ratio is well above the historic mean of 15... I think it is around 23 or 24 atm but too lazy to check the exact number.
Anyway, as in all previous corrections in the past the market was the last to know.
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Re: Downturn for Adidas supplier

Post by armchairlawyer »

This all-time high is not like the all-time high we saw in January (says Hedgeye).

https://app.hedgeye.com/insights/69715- ... type=macro
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Re: Downturn for Adidas supplier

Post by fax »

Anchor Moy wrote: Sun Aug 19, 2018 5:33 pm Can you tell the real from the fake ?
I can when they break after a week!
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Re: Downturn for Adidas supplier (Bump)

Post by CEOCambodiaNews »

Meanwhile, almost 5 years later - bump...

Cambodia Is Adidas’ Biggest Apparel Supplier as Sportswear Giant Shifts Production Out of China
Jie Shuyi
DATE: Feb 08 2023
(Yicai Global) Feb. 8 -- Cambodia was Adidas’ largest garment manufacturer in 2021, overtaking China, as the German sportswear giant turns to Southeast Asia to fulfil its manufacturing needs. Adidas’ incoming chief executive officer will need to tackle the tricky issues of manufacturing in China and the Chinese market, where sales are sliding.

Cambodia made 21 percent of Adidas’ sports clothing in 2021, followed by China with 20 percent and Vietnam with 15 percent, according to the Bavaria-based firm’s financial report. Back in 2013, China was the biggest producer at 33 percent, followed by Indonesia with 11 percent and Vietnam 10 percent for Vietnam.

Adidas’ sales are also tumbling in China and have dropped for six consecutive quarters due to the Covid-19 pandemic, changes in consumer preference and stiff competition. The sportswear giant said at the end of last year that it will reduce the number of outlets in China to 8,000 from 12,000.

The replacement to former CEO Kasper Rorsted, who stepped down ahead of schedule earlier this year, will have to reverse the decline in the Chinese market.

And in terms of production, China is faring even worse with footwear. Indonesia makes just over a third of Adidas’ sports shoes, at 36 percent, Vietnam produces 30 percent and China only 15 percent.

And it is a similar situation with Nike. More than half of Nike’s sports shoes are manufactured in Vietnam, a quarter in Indonesia and 21 percent in China.

In pursuit of lower costs, many Chinese manufacturers are moving production to Southeast Asia. Shenzhou International Group Holdings, one of Adidas’ biggest suppliers, is building more plants in Cambodia and Vietnam.
https://www.yicaiglobal.com/news/cambod ... t-of-china
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Re: Downturn for Adidas supplier

Post by Jerry Atrick »

armchairlawyer wrote: Sun Aug 19, 2018 2:25 pm

In the USA or Asia? I'm guessing they price lower in Asia. Maybe I'm wrong.
FAR more expensive in Asia than Europe
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Re: Downturn for Adidas supplier

Post by Doc67 »

Cambodia made 21 percent of Adidas’ sports clothing in 2021


Would that include footwear? If so, I am surprised there are not plenty of genuine items finding their way onto market stalls here. I believe there are often overruns in this type of manufacturing, plus seconds, and these overruns / seconds leak out into the local market. Maybe Adidas will not allow this.

From what I've seen (and bought once) the quality of fake trainers here is a joke and not worth the $10 they charge. It makes me think that footwear is made elsewhere for technical reasons.
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Re: Downturn for Adidas supplier

Post by Kenr »

All big name brand shoes are waaaaaay more expensive here than in the US. I’m glad I brought four (4) pairs of Reebok DMX walking shoes, plus many pairs of various sandals. Wish I had brought more.
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