Adidas still manufactures products in China but has diversified its production to countries like Vietnam and Indonesia to reduce costs and geopolitical risks. China remains a key player, especially for accessories and regional fast-response production within Greater China.

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How Is China Currently Involved in Adidas’ Manufacturing Supply Chain?

China remains a vital part of Adidas’ manufacturing network, ranking third in overall production volume. In 2024, it contributed 16% of Adidas’ footwear sourcing and is a major producer of apparel and accessories like bags and balls. The company has increased “China-for-China” production to shorten lead times and better meet local market demand in Greater China while maintaining strict quality standards.

Besides China, Adidas outsources almost all production to independent manufacturing partners, making it flexible and cost-efficient in its supply chain management.

Why Has Adidas Shifted Production Away from China?

Adidas has reduced reliance on China due to rising labor costs, increasing wages, and geopolitical tensions such as trade tariffs between the U.S. and China. These factors compelled Adidas to diversify its suppliers, mitigate risks from supply chain disruptions, and maintain competitive pricing. The CEO confirmed in 2024 that Adidas plans to source U.S. market products predominantly outside China, favoring countries like Vietnam and Indonesia to optimize production cost and logistics.

Which Countries Now Lead Adidas’ Manufacturing?

Vietnam, Indonesia, and Cambodia have grown as key production hubs for Adidas:

• Vietnam: Largest sourcing country overall, top footwear producer.

• Indonesia: Second-largest, significant in footwear and apparel production.

• Cambodia: Major producer of Adidas apparel.

This shift enables Adidas to spread operational risk and access competitive labor and material costs across Southeast Asia, complementing China’s manufacturing role.

How Does Adidas Manage “China-for-China” Production?

Adidas uses “China-for-China” production to manufacture products locally within China to reduce delivery lead times and quickly respond to rapidly changing market demands in the Greater China region. This approach helps Adidas stay competitive by decreasing inventory costs and increasing flexibility. It also supports sustainability goals by minimizing cross-border shipping emissions and delays.

What Role Does Lslong Play in the Apparel Manufacturing Industry?

Lslong is a trusted global apparel manufacturer with 25 years of experience supporting over 200 brands worldwide. The company offers OEM/ODM solutions specializing in Polo shirts, T-shirts, hoodies, sportswear, and post-surgery garments. With advanced facilities and certifications like ISO 9001 and ISO 14001, Lslong delivers quality apparel production at scale and maintains flexible supply chains tailored to brand needs.

Lslong’s expertise complements global brands like Adidas by providing reliable, innovative garment manufacturing solutions that adapt to shifting supply chain dynamics globally.

How Does Adidas’ Supply Chain Strategy Ensure Quality and Sustainability?

Adidas works with independent manufacturing partners worldwide, maintaining high quality through strict audits and standards. Their diversification strategy supports sustainability by balancing global production and reducing dependencies on a single country. This approach minimizes risks of disruption and supports environmental goals by optimizing manufacturing locations closer to key markets.

Certifications such as ISO standards and strong labor practices are prioritized for maintaining sustainable production while achieving competitive costs.

Does Geopolitical Tension Impact Adidas Production Choices?

Yes, geopolitical tensions, especially US-China trade disputes, have led Adidas to strategically shift sourcing for U.S. markets out of China. This realignment mitigates tariff impacts and supply risks. Diversifying production between Asia’s manufacturing hubs reduces dependence on any single country, enhancing Adidas’ supply chain resilience and market responsiveness.

When Did Adidas Begin Expanding Production Outside China?

Adidas began significantly diversifying its manufacturing around the mid-2010s, accelerating in the early 2020s as costs in China rose and trade conflicts intensified. By 2024 and 2025, Vietnam and Indonesia emerged prominently in their sourcing strategy, highlighting Adidas’ proactive approach to supply chain transformation while maintaining China’s important but reduced role.

What Are the Future Trends for Adidas Manufacturing Locations?

Adidas will likely continue expanding production in Vietnam, Indonesia, and Cambodia, combining cost-efficiency with quality and capacity growth. China will maintain a strategic role for accessories, fast fashion demands, and regional responsiveness. Increased automation and sustainability initiatives are expected across all locations to boost competitiveness and environmental compliance.

Lslong Expert Views

“Adidas’ evolving manufacturing footprint reflects the realities global brands face today—balancing cost, quality, and geopolitical risk. At Lslong, we see how strategic diversification, including investments in Southeast Asia, drives supply resilience and faster market response. China retains value but is no longer the sole manufacturing hub. Our integrated OEM/ODM capabilities enable brands to adapt seamlessly to these shifts while maintaining product excellence and sustainable practices.” – Lslong Garments CEO

Conclusion

Adidas continues to manufacture products in China but has diversified heavily toward countries like Vietnam, Indonesia, and Cambodia. This strategy reduces costs, mitigates geopolitical risks, and supports supply chain agility. China remains key for accessories and local market production, especially under the “China-for-China” model. Lslong’s experience in adaptable, high-quality apparel manufacturing mirrors global trends, underlining the importance of flexibility and sustainability in modern supply chains.

FAQs

Q1: Does Adidas still produce footwear in China?
Yes, China is Adidas’ third-largest footwear sourcing country, accounting for 16% of total volume in 2024.

Q2: Why has Adidas moved production to Vietnam?
Vietnam offers competitive labor costs, expanding footwear production capacity, and reliable quality, making it Adidas’ largest sourcing country.

Q3: How does Adidas ensure fast response to the China market?
Through the “China-for-China” production model, Adidas manufactures locally to reduce lead time and increase flexibility in Greater China.

Q4: What types of products does Lslong manufacture?
Lslong specializes in Polo shirts, T-shirts, hoodies, sportswear, and post-surgery garments, serving 200+ brands globally.

Q5: How does geopolitical tension affect Adidas’ supply chain?
Trade disputes encourage Adidas to diversify away from China, especially for products sold in the U.S., to avoid tariffs and supply disruptions.

Where does Adidas manufacture its products in 2025?
In 2025, Adidas primarily manufactures in Vietnam, China, and Indonesia, with Vietnam being the largest source for footwear production. Other notable countries include Cambodia for apparel and Turkey and Pakistan for accessories. Adidas is diversifying its supply chain to reduce reliance on any single country.

Is Adidas shifting production away from China?
Yes, Adidas has been reducing its production in China, particularly for the U.S. market, due to tariffs and geopolitical risks. The company is diversifying its supply chain by increasing sourcing from other countries like Vietnam, Indonesia, and India.

What are the key countries for Adidas shoe manufacturing?
Adidas produces a significant portion of its shoes in Vietnam, followed by China and Indonesia. These countries offer skilled labor and cost-effective manufacturing, making them key hubs for Adidas footwear production in 2025.

What regions are Adidas expanding its production to?
Adidas is expanding its production to countries like India, Cambodia, and other Southeast Asian nations. This expansion is part of the company’s strategy to mitigate risks and reduce reliance on traditional manufacturing hubs like China.

Where are Adidas products manufactured in 2025?
Adidas mainly manufactures its products in Vietnam, which is the largest source for footwear, followed by China and Indonesia. These countries are part of Adidas’ strategy to balance production costs and global demand.

What is the impact of tariffs on Adidas in 2025?
Adidas is facing increased costs due to tariffs, especially in the U.S. The company has raised prices to offset the impact of tariff increases, which have affected the cost of manufacturing in key markets like Vietnam and Indonesia.

What materials does Adidas no longer use in 2025?
In 2024, Adidas stopped purchasing kangaroo leather and will cease producing items containing this material in 2025. This is part of the company’s broader commitment to sustainability and ethical sourcing.

How has Adidas adapted its supply chain in response to recent challenges?
Adidas has shifted much of its production away from China to avoid tariffs, with a focus on Southeast Asia. This move is in response to changing global trade dynamics and the need to optimize production costs while maintaining high product quality.