Supply chain

Number of supplier factories

1,236 Independent supplier factories

In the course of any calendar year there is a notable movement of factories, as suppliers are added or removed, because business entities are created, bought or sold by the adidas Group, or intermediaries, such as agents, are hired or their services are terminated. The data we are reporting here is a snapshot in time, a static point capturing the situation at the end of 12 months of these movements. Data is presented on a year-on-year basis, as at the 31st December.

In 2010, we worked with 1,236 independent factories (excluding factories of our licensees) who manufacture adidas Group products in 69 countries. 69% of the factories are located in the Asia Pacific region, 17% in the Americas and 14% in Europe, Middle East and Africa (EMEA). Over one quarter, or exactly 27%, of all these factories are in China.

The total number of supplier factories is higher than the number reported in 2008 or in 2009. The reasons for this are:

  1. Improved supply chain disclosure by business entities, such that suppliers that may have already been part of our supply chain have now been declared, registered and approved.
  2. A change in the number of business entities within the adidas Group.
  3. Increased use of secondary manufacturing locations by suppliers, especially in China.
show/hide more detail

Number of supplier factories
(excluding own factories and licensee factories)

Number of supplier factories (excluding own factories and licensee factories)
20082008 707 180 164 1,051
20092009 775 168 185 1,128
20102010 851 215 170 1,236

Supplier factories by region in 2010
(excluding own factories and licensee factories)

Supplier factories by region in 2010 (excluding own factories and licensee factories)

Factories by country

+108 additional supplier factories worldwide

Compared with year-on-year data for 2009, there was a notable increase in factory numbers in Brazil, Cambodia, China, India, Indonesia and Vietnam. The reasons for these increases are multi-various, as explained below.

The trend in Brazil is not the result of new factories being added to the supply chain, but improved compliance by business entities leading to fuller disclosure of manufacturing locations. In Asia, Cambodia, Indonesia and Vietnam have grown, partly in response to operating costs in China, but also due to trade restrictions forcing China based footwear suppliers to invest in other countries. In the case of India, improved transparency has added to the number of factories being disclosed and in China, additional factories have been added as suppliers have built secondary facilities to access labour in more remote locations, but they have also retained their existing coastal manufacturing facilities as development and management hubs.

There has also been a marked decline in the number of factories in certain countries around the world. Notable examples include Australia and New Zealand where there has been a consolidated sourcing approach with increased dependence on foreign imports and hence a reduced local supply chain. In South Africa the supply chain also shrank, post the 2010 FIFA World Cup South Africa™.

show/hide more detail

Number of supplier factories per country1

Asia

Country Total number of factories
  2008 2009 2010
Australia 9 10 3
Bangladesh 8 9 6
Cambodia 9 8 16
China 268 308 337
Hong Kong 3 2 2
India 59 77 99
Indonesia 50 64 79
Japan 62 63 59
Korea 61 52 44
Laos - - 1
Macao 1 2 1
Madagascar 1 2 2
Malaysia 10 7 6
Mauritius - 1 1
New Zealand 4 5 1
Pakistan 7 8 13
Philippines 17 17 17
Singapore 1 1 1
Sri Lanka 11 8 7
Taiwan 28 27 35
Thailand 35 41 45
Vietnam 63 63 76
Total Asia 707 775 851

Americas

Country Total number of factories
  2008 2009 2010
Argentina 9 13 19
Brazil 27 27 50
Canada 38 32 29
Chile 1 1 1
Colombia 3 2 3
Costa Rica 2 2 -
Dominican Republic 1 1 1
El Salvador 8 3 4
Guatemala 3 3 4
Honduras 7 5 6
Mexico 17 12 19
Nicaragua 1 1 3
Paraguay 1 1 1
Peru 4 4 4
United States 58 61 71
Total Americas 180 168 215

EMEA

Country Total number of factories
  2008 2009 2010
Albania 1 - -
Belarus 1 1 1
Bosnia and Herzegovina 1 1 1
Bulgaria 1 1 1
Czech Republic 3 3 3
Denmark - 1 1
Egypt 2 3 2
Finland - 1 1
France 3 3 3
Germany 13 19 23
Greece 5 4 3
Hungary - - 1
Israel 1 2 1
Italy 23 24 18
Jordan - 1 1
Latvia 1 - -
Lesotho 1 2 3
Lithuania 1 2 2
Macedonia 1 1 1
Moldova 1 1 1
Poland 3 8 9
Portugal 8 9 9
Romania 1 3 1
Russia 10 7 4
Slovakia 1 - 1
Slovenia 1 3 4
South Africa 18 19 13
Spain 16 15 15
Swaziland 1 2 2
Sweden 5 7 7
Switzerland 1 1 2
Tunisia 3 3 1
Turkey 22 16 13
Ukraine 2 2 2
United Kingdom 13 19 20
Zimbabwe - 1 -
Total EMEA 164 185 170

Global

Region Total number of factories
  2008 2009 2010
Total Asia 707 775 851
Total Americas 180 168 215
Total EMEA 164 185 170
Total Global 1,051 1,128 1,236

1) Independent supplier production sites of the adidas Group excluding licensee factories and own production sites.

adidas Group licensees

45 licensees whose suppliers manufactured products in 307 factories in 45 countries.

In 2010, the adidas Group worked with 45 licensees whose suppliers manufactured products in 307 factories in 45 countries.

The total number of licensee factories is higher than the number reported in 2009 due to improved supply chain disclosure by licensees and the increased number of licensees. In some cases the factories producing for certain licensees, such as in the field of cosmetics, are very stable being highly capitalised and specialised manufacturing facilities. A large proportion of the licensees are however apparel producers and as with the adidas Group's own direct sourcing arrangements licensees see expansion and contraction of the numbers of factories throughout the course of a year. For this reason, the data we are reporting here is a snapshot in time, a static point capturing the situation at the end of 12 months of these movements.

show/hide more detail

adidas Group Licensees

2008 2009 2010
Licensees 40 41 45
Factories producing for licensees1 247 288 307
Production countries 42 44 45

1This might include factories which produce both, for the adidas Group directly as well as for licensees/agents.

adidas and Reebok licensees divided by product range in 2010

adidas and Reebok licensees divided by product range in 2010
Reading this report

Performance counts and reporting is about making performance clear to readers.

So in this year's report each page identifies which Global Reporting Initiative (GRI) indicators it addresses, complementing the GRI Index.