Chapter 1

INTRODUCTION
 1.1 INTRODUCTION TO ORGANIZATION AND PROJECT WORK

An organization is an entity such as company, an institution, or an association comprising one or more people
and having a particular purpose. According to Louise Allen defines ―an organization is the process of
identifying and grouping work to be performed, defining and delegating responsibility and authority and
establishing relationship for the purposes of enabling people to work most effectively together in accomplishing
objectives‖. According to l.H Haney ― organization is a harmonious adjustment of specialised parts for
accomplishments of some common purpose or purposes organization is the adjustment of various activities for
the attainment of common goals‖. Organization is the backbone of management because without an efficient
organisation no management can perform its function smoothly. In the management process organisation stands
as a second state which tries to combines various activities in a business to accomplish predetermined goal.
Adidas is a multinational company. Since it was established in Germany 2949 by Adolf dassler, Adidas can be
synonymous with the sporting industry. Today Adidas is a global public company and is one of the largest sport
brand in the world. It is a household brand name with its there stripes logo recognised in market across the
world.
Adidas group one of the global leader in the sporting goods industry offering board range of footwear, apparel
and hardware for sports and lifestyle our brand are renowned for their innovation and heritage and include
household names such as Adidas, Reebok, tailor-made, Rockport, CCM-, ashworth and five ten
The product portfolio is vest, ranging from state-of-the arts sports. Footwear and clothing to accessories such as
bags, watches, eyewear and other sports related goods and equipment. Employing over 46000 people
worldwide, the Adidas group consist of around 170 subsidiaries including reebok tailor-made Adidas golf,
Rockport and CCM- Hockey. The headquarter are in herozgenaurach, Germany in the second quarter of 2013
the group revenue was 3.383 billion.
The Adidas brand is build on a passion for sports excellence and innovation design to help athletic perform to
the best of the ability. It is therefore no surprise the Adidas has supported many iconic athletic to achieve great
they at the Olympics games. In the UK, Adidas has partnered and supplied team GB since 2984 the company
heritage with the Olympic games data back to the games in Amsterdam in 1928 when Adidas running shoes
were debuted footwear and clothing by Adidas has been seen on athletic at every Olympic games since in fact
all British medal running athletic at the last 8 Olympics games were Adidas products.
It was started as a production house of sports garments but later it became a leading producers of sports
garments and shoes as well as casual footwear and clothing. It is the largest sportswear manufacturing
consumers in Europe and second largest in the world after Nike.
Adidas is the primary manufacturing designing company for the Adidas group which also include the Reebok
sportswear company and is a leader supplement producer for the German football club began Munich
The name Adidas (written ―Adidas ―by the company) is an abbreviations of the name of founder Adolf (―adi‖)
Dassler. The dassler family began manufacturing shoes after world war 1 at the 1936 Berlin Olympic, the
American trade and field star Jesse owner were shoes that were reportedly a gift from adi dassler owner medal
winning performance increased awareness of the dassler brand around the world. After the description of world
war 2 adi and his brother Rudolf (―Rudi‖) strove a rebuild kit dassler firm, but a personal breach between the
brother and become inseparable but 1948. The business therefore split the two Rudy‘s company was eventually
called puma, while adi became creditor.
Few years later Adidas began to produce apparel for many years Adidas was the biggest name in athletic shoes,
but competition introducing the 1970‘s notably from never firm such as Nike. Adi dassler died in 1978, and the
company experienced falling market share inducement deal with the rap-group rum B.C.M creditor of the hit
song ― my Adidas‖ (1986) .
1.2 OBJECTIVES OF THE STUDY
 To do organization study in Adidas
 Comparison between various branded sports shoes
 To understand organization settings and marketing strategies
 To understand management procedure functions in the organization
 To do SWOT analysis of Adidas
 To give suggestions to improve in all area of the organization
1.3 RESEARCH METHODOLOGY

1.3.1 MEANING
A research for knowledge is known as research. It is an intellectual action with a set of principles to find
solution for problem through collection, and evaluation of data. It‘s aim is to advance knowledge for leading the
society towards progress. Research is a process of systematic and in depth study. With the help of scientific
methods on any particular subjects through collection, and interpretation of data.

1.3.2 DEFINITION
According to CRESWELL define ―research is a process of steps used to collect and analyse information to
increase our understanding of a topic or issue‖.
According to MARTYN SHUTTLEWORTH define ―in the broadest sense of the world, research includes any
gathering of data, information and facts for the advancement of knowledge‖.
According to CLIFFORD WOODY define ―research comprises of defining and delegating problem, formulating
hypothesis or suggested solution, collecting, organizing and evaluating data, making deduction and reaching
conclusion and at least carefully testing conclusions to determine whether they fit the formulating of
hypothesis‖.
Research can be defined as a scientific and systematic search for pertained information on a specific topic
According to muynad and muynad (2003) define ―research as carrying out of delegated inquiry or critical
examination of given phenomenon following some logical sequence‖.
Author defined research a systematic and agencies effort to investigate a specific problem that need a solution.
According to burn defines research is a systematic investigation to find answers to a problem.

1.3.3 RESEARCH METHODOLOGY

The science of research method is termed as research methodology . It indicates the process of conduct of
research. It described how research is to be done scientifically. It explain why research is undertaken, how the
research problem is formulated, what method are to be used for collection of data, which tools are yo be used for
the analysis of data , how the research findings are to be interpreted and what are the limitations of research.
Research methodology is the structural process of research.
Research methodology has many dimensions and research methods constitute a part of the research
methodology. The scope of research methodology is wider than that of research methods.

1.3. 4 RESEARCH DESIGN

A plan of the proposed research study is known as research design.
A research design is a map developed to guide the research. It is a blue print for the collection, and analysis of
data. It indicates how to conduct research.
A research design is a systematic plan to study a research problem. It is deciding in advance of the methods and
technique to be adopted for the collection of analysis of data considering the objectives of research and
availability of staff, time and money.
1.3.5 DEFINITION OF RESEARCH DESIGN
According to kerlinger define ―research design is the plan, structure and strategy of investigation conceived so
as to obtain answer to research question and to control variance‖.
According to GREEN and Tull define ―a research design is the specifications of method and procedures for
acquiring the information needed. It is the overall operational pattern or frame work of the project that stipulates
what information is to be collected from which source by what procedures‖.
According to DAVID J LUCK and RONALD S RUBIN defines ―a research design is the determination of
statement of the general research approach or strategy adopted for the particular project‖.
According to WILLIAM ZIKMUND defines ―research design is a master plan specifying the methods and
procedures for collecting and analyzing the needed information‖.

1.3.5 SOURCE OF DATA COLLECTION

There are two source of data collections they are:
1. Primary data
2. Secondary data
Primary data
The data collected by the researcher directly from the universe for the first time for the research work is called
primary data. It is the data collected first hand by the researcher for finding solution to the research problem .
The data is original. It is not used by any person or organization for any research work. The data is collected by
the researcher himself so it is accurate and reliable.
Secondary data
The use of data collected by a person for his research work by another person for his research study is known as
secondary data.
Secondary data are the data collected in the past for a purpose other than the current study.
The secondary data is collected from website, Wikipedia, brochure etc…
It is easily available. The cost of collection of data is very low. Te time required for the collection of data is low.
It contain large volume of information.

1.3.7 TOOLS USED FOR DATA COLLECTION

In this organization study only secondary data used, so questionnaire and interview method is not used for data
collection.

1.3.8 SOFTWARE USED FOR THE PROJECT PRESENTATION

The software used for the study is MS word and MS excel.
1.4 SCOPE OF THE STUDY

It was conducted for a period of days. The study help the researcher to understand organization settings,
procedure, departmental finding and strategy used by the company in year long running. This also help the
researcher to get well familiarized with the department, their policies procedure and how to get along in their
work environment and in total the researcher will get a full knowledge on how an organization can have a
competitive advantage and edge over other creditor and to learn on the various decision making person
employed to deal with many situation in their day to day business activities.
1.5 LIMITATIONS OF THE STUDY
 The time was main constraints
 Source of information is website and Wikipedia
 Only secondary data is used in this study. Primary data is not used because the data collected is distrabed
of pandemic covid 19
 It may contain errors
 It may not be accurate and reliable
 CHAPTER 2

INDUSTRY PROFILE
2.1 AN OVERVIEW OF THE INDUSTRY

In Europe, the footwear industry has declined in the last years. Whereas in 2005, there were about 27,000 firms,
in 2008 there were only 24,000. As well as the number of firms, the direct employment has decreased. The only
factors that remained almost steady was the value added at factor cost and production value.
In the U.S., the annual footwear industry revenue was $48 billion in 2012. There are about 29,000 shoe stores in
the U.S. and the shoe industry employs about 189,000 people. Due to rising imports, these numbers are also
declining. The only way of staying afloat in the shoe market is to establish a presence in niche markets.
Footwear refers to garments worn on the feet, which originally serves to purpose of protection against
adversities of the environment, usually regarding ground textures and temperature. Footwear in the manner
of shoes therefore primarily serves the purpose to ease the locomotion and prevent injuries. Secondly footwear
can also be used for fashion and adornment as well as to indicate the status or rank of the person within a social
structure. Socks and other hosiery are typically worn additionally between the feet and other footwear for
further comfort and relief. Cultures have different customs regarding footwear. These include not using any in
some situations, usually bearing a symbolic meaning. This can however also be imposed on specific individuals
to place them at a practical disadvantage against shod people, if they are excluded from having footwear
available or are prohibited from using any. This usually takes place in situations of captivity, such
as imprisonment or slavery, where the groups are among other things distinctly divided by whether or whether
not footwear is being worn. In these cases the use of footwear categorically indicates the exercise of power as
against being devoid of footwear, evidently indicating inferiority.

The textile industry is primarily concerned with the design, production and distribution
of yarn, cloth and clothing. The raw material may be natural, or synthetic using products of the chemical
industry. The textile industry is a group of related industries which uses a variety of natural (cotton, wool, etc.)
and/or synthetic fibres to produce fabric. It is a significant contributor to many national economies,
encompassing both small and large-scale operations worldwide.

Subdivision of the textile industry into its various components can be approached from several angles.
According to reference , the classical method of categorizing the industry involves grouping the manufacturing
plants according to the fibre being processed, that is, cotton, wool, or synthetics. The modern approach to textile
industry categorization, however, involves grouping the manufacturing plants according to their particular
operation.

Traditionally, the textile industry is very energy, water, and chemical-intensive. About 60% of the energy is
used by dyeing and finishing operations . Environmental problems associated with the textile industry are
typically those associated with water pollution. Natural impurities extracted from the fibre being processed
along with the chemicals used for processing are the two main sources of pollution. Effluents are generally hot,
alkaline, strong smelling and coloured by chemicals used in dyeing processes. Some of the chemicals
discharged are toxic.
2.2 HISTORY
Since the earliest human history, archaeological finds of complete shoes date back to the Chalcolithic(ca. 5.000
BCE). Some ancient civilizations, such as Egypt and Greece however saw no practical need for footwear due to
convenient climatic and landscape situations and used shoes primarily as ornaments and insignia of power.

The Romans saw clothing and footwear as unmistakable signs of power and status in society, and most Romans
wore footwear, while slaves and peasants remained barefoot. The Middle Ages saw the rise of high-heeled
shoes, also associated with power, and the desire to look larger than life, and artwork from that period often
depicts bare feet as a symbol of poverty. Depictions of captives such as prisoners or slaves from the same period
well into the 18th century show the individuals barefooted almost exclusively, at this contrasting the prevailing
partakers of the scene. Officials like prosecutors, judges but also slave owners or passive bystanders were
usually portrayed wearing shoes. During the Middle Ages, men and women wore pattens, commonly seen as the
predecessor of the modern high-heeled shoe, while the poor and lower classes in Europe, as well as slaves in the
New World, were usually barefoot. In the 15th century, choppiness were created in Turkey, and were usually 7-
8 inches (17.7-20.3 cm) high. These shoes became popular in Venice and throughout Europe, as a status
symbolrevealing wealth and social standing.

During the 16th century, royalty such as Catherine de Medici and Mary I of Englandbegan wearing high-heeled
shoes to make them look taller or larger than life. By 1580, men also wore them, and a person with authority or
wealth might be described as, well-heeled. In modern society, high-heeled shoes are a part of women's fashion
and are widespread in certain countries around the world.

There are some indications that weaving was already known in the Palaeolithic. An indistinct textile impression
has been found at Pavlov, Moravia. Neolithic textiles were found in pile dwellings excavations in Switzerland
and at El Fayum, Egypt at a site which dates to about 5000 BC.
In Roman times, wool, linen and leather clothed the European population, and silk, imported along the Silk
Road from China, was an extravagant luxury. The use of flax fiber in the manufacturing of cloth in Northern
Europe dates back to Neolithic times.

During the late medieval period, cotton began to be imported into Northern Europe. Without any knowledge of
what it came from, other than that it was a plant, noting its similarities to wool, people in the region could only
imagine that cotton must be produced by plant-borne sheep. John Mandeville, writing in 1350, stated as fact the
now-preposterous belief: "There grew in India a wonderful tree which bore tiny lambs on the edges of its
branches. These branches were so pliable that they bent down to allow the lambs to feed when they are hungry."
This aspect is retained in the name for cotton in many European languages, such as German Baumwolle, which
translates as "tree wool". By the end of the 16th century, cotton was cultivated throughout the warmer regions of
Asia and the Americas.

The main steps in the production of cloth are producing the fibre, preparing it, converting it to yarn, converting
yarn to cloth, and then finishing the cloth. The cloth is then taken to the manufacturer of garments. The
preparation of the fibres differs the most, depending on the fibre used. Flax requires retting and dressing, while
wool requires carding and washing. The spinning and weaving processes are very similar between fibers,
however.
Spinning evolved from twisting the fibers by hand, to using a drop spindle, to using a spinning wheel. Spindles
or parts of them have been found in archaeological sites and may represent one of the first pieces of technology
available. The spinning wheel was most likely invented in the worldly the 11th century.
2.3 MARKET DEMAND AND SUPPLY

There has been a reduction in the overall labour force in the major safety of footwear market segment such as
manufacturing, wholesale and detail and agriculture there by reducing the demand for safety shoes in there
segments. This trends was due to the shift of labour towards service segments like public sector service,
transportation and it communication sector. Another major reasons for reductions in the demand is ends users
are widely looking for cost saving opportunities on every functional area and softy shoes is not an expression
resulting in lower replacement rates of safety shoes. Safety footwear sourcing of footwear from china, the
largest footwear export country, in Europe union, the trend towards sourcing Stacey of footwear from low cost
countries is increasing which in turn is affecting the local production. Production has been dealing in same parts
of Europe such as western, central and southern Europe due to the shift towards low competition in the market.
Downward pressure on price and mark up has increased due to the increasing competition and buyers focus on
price. Trade channel and price trends safety footwear is mainly distributed through intermediaries such as
wholesales distributors and retailers and also through inline e-commerce sites pressure on price has been
increasing due to increasing buyers power and users and distributor. The constant increase the cost price of
labour and materials is also increasing the pressure on price.

Supply chain is improved with different demand and requirements which got attracted as a stand alone way of
managing the operations. The requirements in supply chain management vary with time for instance , researcher
considered marketing as an integrated part of the supply chain in recent times seeing the increasing need to
integrated key elements of supply chain management with marketing, researcher gave been advocating the
concept of demand creation management and demand fulfilment are different activities in an organization
although manually depends on each other . It is realised in the researcher and the nation that demand supply
creation management is evolved as an extended footstep towards operational improvement through the
integration of demand and supply side of organisation. Experience etal define , demand and supply integrated as
the balancing of demand supply market information and business intelligence the integrated knowledge
management process to strategically manage demand supply activities for the creation of superior customer
value.

Supply creation management The first appear in 1982 which is defined as efforts to reduce ineffectiveness and
solve the problem throughout the supply chain from row material to find customers, supply creation
management shift the mind set from single organization prospective multi action cooperation . On the other
hand , demand creation mis relatively a new concept which integrated supply chain management which demand
generation through marketing efforts. Demand management is the supply chain is a choice the value creation
through out the supply chain which reply low-cost. Demand creation management is about developing synergies
between the demand creation and the demand fulfilment process which comprise all the activities which
necessary for crating demand and closing linked to the marketing development which the demand fulfilment
process comprise all the activities demand integration included increased access to demand Integration through
out the supply chain to permit rapid and efficient activities accident planning, and improved logistics
communication, demand Chain management, that provide the alignment of demand creation and demand
fulfilment process across foundation organization and inter organization boundaries that can leverage the
strength of marketing and supply chain management and meet the challenge of customers value creation in the
market place . Although it is suggested to integrated demand in supply chain suggested that rather than seeking
to manager it harmonise what are to quite district concept ,it is helter to see supply and demand Chain as being
in herently in conflicts within the content of the organization overall value chain
2.3 LEVEL OF COMPETITION
The Footwear Industry is a mature industry; it consists of giant players like Nike, Reebok, & Puma on one hand
and millions of small retailers in the unorganised sector on the other. This industry presents a myriad of
interesting observations – there are highly specialised segments where performance is the driving force – like
running shoes, basketball shoes, and soccer shoes. But to some, a highly ‗fashionized‘ shoe is the priority.
Therefore the industry is in a creative phase where performance and fashion have now been merged to create a
new hybrid, called lifestyle segment. The competition in this industry is mostly non-price at least for the
established legendary players like Nike and Adidas. They compete for mind share of the customer and aspects
like marketing campaigns, brand ambassadors, product proliferation and branding, spell success. Brand
Stickiness is high once a customer has experienced a brand and has been satisfied, indicating that price
stickiness is less which is also due to affluent lifestyles, prosperity and rising purchasing power of the customer
today.

Nike and Adidas are the two mammoths of the industry today. Nike is the world leader with a close follower as
Adidas & Reebok combined (post Reebok‘s acquisition by Adidas in 2006).

The report attempts to study the internal & external environment in which Adidas operates and competes. To
give the study a 360 degree perspective, various aspects of the industry like market trends, customer profile,
competitive analysis and are covered.

Competitiveness and Textile Industry

Clothing manufacturing in many developed countries has almost disappeared, probably more quickly than the
ATC signatories imagined. The Japan Textile Importers Association now estimates that 87 percent of clothes on
sale in Japan are imported: the American Apparel and Footwear Association estimates 89 percent of US clothes.
Nonetheless, the apparel industry in rich countries is fundamentally different in 2002 from what it was in 1994,
and this change affects the way in which the political debate around further liberalization is likely to occur
(Flanagan, 2003).

The countries India and Vietnam are viewed as strong competitors in future market share of textiles and apparel.
Trade relations with Vietnam were non-existent in 1993. Since that time, a desire for closure to the war sees
initial trade relations established. Thus, the data may be misleading due to this fact. India has been among the
largest producers of cotton fiber since the days of yore. In the past India would export low-value items such as
fiber or yarn to developed nations, which produced and manufactured fabric for clothing. However, because the
profit margins are highest in the fabric and assembling for the apparel supply chain, the realization dawned to
integrate vertically. India has emerged as a major sourcing base of cotton clothing worldwide and most of the
leading US retailers such as Gap, J.C. Penney, and Nordstrom have set up sourcing offices in India (Tragi,
2003).

As government policy has become more strongly oriented towards trade liberalization, the industries have
become progressively exposed, through multi-lateral and bilateral deals, to the full force of international
competition from a growing array of international suppliers. At the same time, the emergence of large,
sophisticated retail groups together with intense retail competition has found retailers exercising their bargaining
leverage by squeezing suppliers for lower prices, and higher levels of service and product innovation. There has
also been an increasing trend among large retailers to source direct or use foreign intermediaries (Flanagan,
2004).
Market needs have become more changeable and fragmented, and consumers have become more discriminating
with regard to product novelty, quality and value. Technological change has resulted in a broadening and a
deepening of the financial and intellectual resources textile and apparel companies need to compete. Companies
have been faced with making heavy investments in new technologies against the background of poor
profitability, uncertain competitive outcomes and difficulties in gaining access to capital at non-discriminatory
rates (Kilduff and Priestland, 2001).

2.4 Global /national /regional performance

2.4.1Global footwear industry
The global market for Footwear is projected to reach US$403.2 billion by 2025, driven by new design trends
and rising discretionary spending among the expanding base of middle class population. Other major factors
driving growth in the market include rise of smart concepts such as connected fabrics, footwear internet of
things and material innovations including leather alternatives derived from fruit, palm, mushroom, pineapple
and sericin. 3D printing is increasingly becoming mainstay of shoe manufacturing with the technology enabling
manufacturers to cope with the overwhelming demand for a wide variety of shoe designs and mass
customization. In the casual footwear market, timeless classics are making a comeback with women preferring
simple classic black pair of shoes with medium heels which serve as perfect accessory for almost any outfit.
From office to date to gym, people are buying footwear for every occasion. Shoes are increasingly becoming
expressive of one‘s personality, a trend that is driving up the concept of "investment shoes" defined as
expensive shoes with luxury materials such as premium leather. Sneakers are rapidly going from street fashion
into the sophisticated corporate boardrooms. In a landmark change in consumer behaviour, men are spending
more shoes and are preferring colour over the conventional black. Consumerism is the key reason behind the
growing per capita consumption of footwear worldwide. Other noteworthy trends in the market include growing
popularity of dimethylformamide (DMF) free PU synthetic leather chemicals in the manufacture of footwear
supported by benefits such as design freedom and environmental benefits; increased consumer involvement in
sports and fitness activities and the ensuing demand for athletic footwear; and growing commercial value of
eco-friendly footwear and increased research and development interest in plant-based leathers. The rise of
multifunctional fashion is driving the prominence of convertible shoes interchangeable with a wide range of
dresses. Also, emerging and established footwear brands are resorting to celebrity endorsements to help spur
sales of non-athletic footwear.

Athletic shoes constitute one of the leading categories of the footwear market, supporting the active lifestyles of
consumers who are increasingly getting ‘sporty‘. Key footwear brands within the segment include Nike and
Adidas as well as small-sized brands and companies that offer a wide range of footwear for diverse customer
segments. Companies operating within the segment are also constantly innovating on functionality, performance
and comfort to evade competition. From golfing to running, sports have become highly intertwined with
consumers‘ day-to-day lifestyles and are not considered just recreation. Growing awareness of keeping fit, both
among the ageing and the youngsters, is bolstering healthy growth, coupled with rising average per capita
income. In what is being considered as a relatively new trend, gifting of athletic footwear on prominent
occasions and holidays is fast catching up across the US and other markets. In the past couple of years, footwear
has earned itself as one of the most sought after holiday gifts, thereby making it one of the top five preferences
for local consumers. This particular trend is expected to boost growth of the local footwear industries in the US
and developed European market. The United States, in value terms, represents the single largest market
worldwide supported by robust demand for athletic and sporting footwear as a result of their acceptance as part
of casual dressing among men and women. Asia-Pacific including China is a major market led by factors such
as growing population, apparel needs and a parallel increase in demand for affordable mass-market footwear;
westernization of lifestyles among young affluent people and a parallel increase in demand for sneakers; and
growing preference for high-fashion and branded footwear among the middle class population.
The global footwear market is highly competitive and fragmented with a few major players and a seemingly
endless array of smaller players, including designers, marketers, manufacturers and retailers, all vying for share.
The footwear market can be divided into two categories: athletic footwear and non-athletic footwear. Globally,
several companies crack the $1.0 billion dollar barrier in footwear sales but only Nike, Inc. and Adidas AG
bring in more than $5.0 billion. Athletic footwear includes athletic, sport, and active lifestyle footwear. Athletic
footwear also includes footwear that is not designed for a specific individual or team sport but may be
performance inspired or intended for other activities. Products such as ski and snowboard boots may also be
included in the overall scope of the athletic footwear market.

Non-athletic footwear covers casual and dress shoes. It also includes house slippers, various types of work shoes
and boots. Other footwear products include accessories (i.e. shoe trees, bags, polishes, laces) gaiters, parts of
shoes, socks, and foot care products. Reports in this category address national and international footwear
markets, including specific sectors such as dress shoes, reviews of companies engaged in manufacturing,
repairing, distributing or importing, specialized areas in the market such as orthotics, and targeted consumer
markets.

Safety of footwear
To ensure high quality and safety of footwear, manufacturers have to make sure all products comply to existing
and relevant standards. By producing footwear in accordance with national and international regulations,
potential risks can be minimized and the interest of both textile manufacturers and consumers can be protected.
The following standards/regulations apply to footwear products:
 CPSIA
 GB Standards such as
o GB20400－2006 Leather and fur-limit of harmful matter

o QB/T1002-2005 Leather shoes

o GB/T 15107 Athletic footwear
 EN Standards for Footwear
 ASTM Standards
 AAFA Restricted Substance List
 BIS (ISI) : IS 15298-I: 2011 test methods, IS 15298 –II for safety footwear, IS 15298-III Protective
footwear, IS 15298-IV Occupational Footwear

Materials

Modern footwear is usually made up of leather or plastic, and rubber. In fact, leather was one of the original
materials used for the first versions of a shoe. The soles can be made of rubber or plastic, sometimes having
a sheet of metal inside. Roman sandals had sheets of metal on their soles so that it would not bend out of
shape.
More recently, footwear providers like Nike, have begun to source environmentally friendly materials.

The footwear industry constitutes an important sector of the economy of developing countries for the following
reasons. Firstly, footwear may be considered as a basic needs item, following closely, in importance, other items
such as food, shelter and clothing. Secondly, the manufacture of footwear uses relatively labour-intensive
processes, and thus contributes substantially to employment generation. Thirdly, this sector can, in some cases,
generate important backward linkages whenever leather is locally produced. Forward linkages are also
generated in the marketing of footwear. Finally, developing countries enjoy a comparative advantage in the
manufacture and export of footwear to industrialised countries: thus, this sector could be the source of much
needed foreign exchange.
Given the importance of the footwear industry for developing countries, it is essential that socio-economic
benefits derived from its expansion be maximised. In other words, the choice of footwear type and quality and
that of technology and scale of production should be such as to contribute to the overall development strategy of
a country. However, recent developments in the footwear industry of developing countries tend to indicate that
many of the choices which are made - in terms of technology, scale of production and footwear type and quality
- are not always in line with the adopted development objectives. Many developing countries have allowed the
establishment of large-scale, capital-intensive footwear plants, often owned and operated by foreign investors.
These plants have, in some cases, been responsible for the closing down of local small-scale factories although
the latter produced good quality footwear at moderate prices.1Furthermore, few countries offer effective
assistance to small-scale footwear producers with a view to improving their competitiveness and profitability.
Thus, developing countries have often allowed the establishment of what may be called a "technological
dualism" in the footwear industry whereby large-scale, capital-intensive footwear plants compete against ill-
equipped artisans and small-scale producers.

The above considerations should not lead one to conclude that large-scale modern footwear plants should not be
established under any circumstances. These plants may, in many cases, be justified (e.g. for the production of
inexpensive plastic sandals or the production of footwear for the export market). It is only suggested that public
planners and project evaluators should carefully Consider future large investments in this sector with a view to
determining whether they are justified or whether small-scale production should be promoted instead.

In order to be able to better plan the expansion of the footwear industry, public planners and project evaluators
need detailed technical and economic information on alternative footwear projects (e.g. scales of production,
alternative manufacturing technologies, foreign exchange savings, employment effects). This information is also
of great importance to potential shoe manufacturers who wish to invest limited funds in profitable projects.
Unfortunately, the existing information is more relevant to industrialised countries' conditions than to those
prevailing in developing countries. Thus, the technologies, footwear types and quality, and scales of production
analysed or advertised in trade journals tend to reflect the market conditions of industrialised countries as well
as their economic structures (e.g. relatively low unemployment rates when compared to those prevailing in
developing countries (e.g. relatively abundant capital and foreign exchange, highly skilled labour).
Consequently, the purpose of this technical memorandum is to partially bridge the information gap by providing
information on technologies suitable for developing countries‘ conditions and circumstances, and by evaluating
these technologies in the light of these countries' economic structure.

It is hoped that this memorandum will be of assistance to decision makers - entrepreneurs, public planners,
project evaluators - concerned with footwear manufacture. It has been prepared in an awareness that it is often
difficult in developing countries to obtain information on alternative footwear production methods the primary
concerns of the memorandum are to describe ranges of alternative ways of making footwear and to show how
the most suitable combination of alternatives for a particular set of circumstances can be identified.

In recent years, there has been a tendency for the footwear sector in the developing world to become
increasingly successful in exporting to industrially developed countries. Domestic markets in developing
countries for locally produced footwear have also grown, partly at the expense of developed country exports.
These new trends have resulted in the establishment of relatively large-scale, capital-intensive plants. Local
enterprises with less access to technical information have thus tended to adopt manufacturing methods similar to
those in 'turn-key' factories, at the expense of technologies more suitable to local conditions, especially at low
scales of production.

Scale of output is only one of the factors affecting technical choice in the industry- choice of footwear type,
quality and durability is also a crucial factor. Low income consumers concerned with satisfying basic health
needs or obtaining the foot protection necessary for many activities may, for example, be less concerned with
the variety of styles available than with retail price. Generally, the narrower the product variety required from a
manufacturing enterprise at a given level of output, the greater the level of mechanisation that can be
economically justified.
Technical choice of manufacturing methods can also be affected by the level of specialisation in shoe parts. In
addition to this scope for enterprises to supply a number of customers with components, a group of producers
may share the use of common facilities for some manufacturing stages. Other considerations that can affect
technical choices are the availability and cost of imported and locally produced manufacturing equipment and
the cost of borrowing capital. Finally, the relationships between the levels of wages, manual skills and the
working paces of operatives, and the degree of utilisation of capital equipment are extremely important
considerations.

2.4.2 GLOBAL TEXTILE INDUSTRY

The global textile industry was estimated to be around USD 920 billion, and it is projected to witness a CAGR
of approximately 4.4% during the forecast period to reach approximately USD 1,230 billion by 2024, according
to a recent report.

The textile industry has evolved greatly since the invention of the cotton gin in the 18th century. This lesson
outlines the most recent textile trends around the globe and explores the growth of the industry. Textiles are
products made from fiber, filaments, yarn, or thread, and can be technical or conventional depending on their
intended use. Technical textiles are manufactured for a specific function. Examples include an oil filter or a
diaper. Conventional textiles are made for aesthetics first, but can also be useful. Examples include jackets and
shoes.
The textile industry is an immense global market that affects every country in the world either directly or
indirectly. For example, the people selling cotton increased prices in the late 2000s due to crop issues but then
ran out of cotton as it was being sold so quickly. The price increase and the scarcity was reflected in the
consumer prices of products that contained cotton, leading to lower sales. This is a prime example of how each
player in the industry can affect others. Interestingly enough, trends and growth follow this rule as well.
From a global perspective, the textile industry is an ever-growing market, with key competitors being China, the
European Union, the United States, and India.

China is the world‘s leading producer and exporter of both raw textiles and garments. And although China is
exporting less apparel and more textiles to the world due to the coronavirus pandemic, the country keeps is
position as the top producer and exporter. Notably, China‘s market shares in world apparel exports fell from its
peak of 38.8% in 2014 to a record low of 30.8% in 2019 (was 31.3% in 2018), according to the WTO.
Meanwhile, China accounted for 39.2% of world textile exports in 2019, which was a new record high. It is
important to recognize that China is playing an increasingly critical role as a textile supplier for many apparel-
exporting countryies in Asia.

The global textile industry impacts nearly every human being on the planet. The industry is currently worth
nearly US $3 trillion and includes the production, refinement, and sale of both synthetic and natural fibers used
in thousands of industries. the textile industry encompasses a broad and diverse range of products with an even
wider range of applications. That diversity is one of many factors that makes the textile industry one of the most
vital to the economic well-being of people all over the world.

Economic Impact
It is estimated anywhere between 20 million and 60 million people are employed in the textile industry
worldwide. Employment in the garment industry is particularly important in developing economies such as
India, Pakistan, and Vietnam. The industry accounts for approximately 2% of global Gross Domestic Product
and accounts for an even greater portion of GDP for the world's leading producers and exporters of textiles and
garments.
Global Textile Market
China is the world's leading producer and exporter of both raw textiles and garments. The United States is the
leading producer and exporter of raw cotton, while also taking the prize for the top importer of raw textiles and
garments.
There are many developing countries ready to crack or climb this list in the near future as their investment into
the textile or garment industry increases. Countries such as Pakistan, Sri Lanka, Samoa, and a number of South
American countries have seen considerable growth in their textile markets in recent years. As China moves
towards a service-based economy, and labour prices continue to rise, it is logical to assume many garment
producers will move away from China and into developing markets where labour is cheap and readily available.

Labour Issues
The textile industry has a unique set of issues and challenges to overcome as globalization and modernization
take hold in developing economies. One issue that has been present in the garment industry for decades is labor
exploitation. The average hourly wage for a garment worker in Bangladesh is 24 cents, and most workers are
not offered any leave, holidays, or other benefits such as health care. Garment workers are often subjected to
substandard working conditions and forced to work extremely long hours all year long to simply earn enough to
survive.

The textile industry encompasses the production and sale of materials such as cotton, yarn, fiber and finished
products or apparels. Conjecture is that the global textile industry might give a CAGR of approximately 5% until
the year 2020.The global textile mills market might predictably reach the value of more than 800 billion USD.
The global apparel and non-apparel industry might exceed the value of almost 1000 billion USD in the next
couple of years. The global textile exports market may fluctuate in the future as more and more nations embrace
domestic production.

The textile industry is an ever-growing market with key competitors being the countries China, European Union,
the United States and India. China‘s textile exports went up by roughly 3% in the year 2018. China is the leading
textile manufacturing country and is almost worth 1/4th of the global textile industry with an export value of
more than 100 billion USD. The textile industry of the European Union has Germany, Spain, France, Italy and
Portugal on the forefront with a value of more than 1/5th of the global textile industry and is currently valued at
more than 160 billion USD. India is the third largest textile manufacturing industry and holds an export value of
more than 30 billion USD. India is responsible for more than 6% of the total textile production globally and is
valued at approximately 150 billion USD. India is followed by the United States in the exports of textile. The
United States has now become one of the largest consumers of textile being responsible for almost 75% of the
total textile imports. China, Japan, India and United States dominate the global textile industry.

The textile and apparel industry has been growing proportionally with the changes in the world of garments. The
global textile industry has seen both rise and fall in the year 2018. The leading production of cotton was achieved
by India, China and United States at around 6,200, 6,000 and 4,500 thousand metric tonnes produced by the
countries respectively. Arvind ltd., the Indian textile company, manufacturing cotton garments might also expand
to other materials soon and is in talks with the Dutch tech company Dye Coo to practice the concept of CO2
dyeing as an environment-friendly option of dyeing. India apparel industry might soon introduce a customized
standard of garment sizes. The Indian textile industry is valued at around 40 billion USD. The Bruit deal might
bring a lot of uncertainty in the global textile industry. To get further details regarding the current scenario of the
global textile industry, please refer to the following reports.
Textile manufacturing is a major industry. It is largely based on the conversion of fibre into yarn, yarn into
fabric. These are then dyed or printed, fabricated into clothes which are then converted into useful goods such
as clothing, household items, upholstery and various industrial products.
Different types of fibres are used to produce yarn. Cotton remains the most important natural fibre, so is treated
in depth. There are many variable processes available at the spinning and fabric-forming stages coupled with the
complexities of the finishing and colouration processes to the production of a wide range of products.

The modern textile industry

Both industrialized and developing countries now have modern installations capable of highly efficient fabric
production. In addition to mechanical improvements in yarn and fabric manufacture, there have been rapid
advances in development of new fibres, processes to improve textile characteristics, and testing methods
allowing greater quality control.

The modern textile industry is still closely related to the apparel industry, but production of fabrics for industrial
use has gained in importance. The resulting wide range of end uses demands a high degree of specialization. In
the most technically advanced communities, the industry employs technicians, engineers, and artists; and a high
degree of consumer orientation leads to emphasis on marketing operations. Some manufacturing operations,
usually serving specialized or local markets and dependent on a limited number of firms for
product consumption, still employ many hand operations, however.

Modern fabrics

The many types of modern textile fabrics, produced from both traditional and synthetic materials, are often
classified according to structure. Fabrics made by interlacing include woven and knitted types, lace, nets, and
braid; fabrics produced from fibre masses include bonded types, wool felt, and needle-woven
types; composite fabrics are produced by uniting layers of various types.
Conventional weaving and knitting methods are currently the major textile manufacturing techniques, but
newer construction methods are achieving acceptance and may replace certain long-established products as
costs of conventional textiles continue to rise and rapid technological advances continually develop new
materials.

Quality control

Textile fabrics are judged by many criteria. Flexibility and sufficient strength for the intended use are generally
major requirements, and industrial fabrics must meet rigid specifications of width, weight per unit area, weave
and yarn structure, strength and elongation, acidity or alkalinity, thickness, and porosity. In apparel fabrics,
design and colour are major considerations, and certain physical properties may be of secondary importance. In
addition, the various tactile properties of a fabric, described as its ―hand,‖ ―handle,‖ or ―feel,‖ influence
consumer acceptance.

The textile industry increasingly employs research and development in the area of quality
control. Medieval craft guilds were concerned with maintaining high quality standards, and later textile mills
established rigid systems of inspection, realizing that a reputation for supplying fault-free goods encouraged
repeat orders. Modern quality control has been assisted by development of techniques and machines for
assessing fibre, yarn, and fabric properties; by the introduction of legislation regarding misrepresentation in
many industrialized countries; and by the establishment of rigid specifications by a growing number of buyers.
Specifications have been established for the purchase of industrial fabrics, for textiles used by the military and
other branches of governments, and for similar purchasing methods adopted by some retailers and other large
buyers. In consumer-oriented areas, the public is becoming aware of product testing and is beginning to require
proof that products have met certain test standards.

Many modern textile organizations test product quality at every major stage of processing. Yarns are tested for
uniform thickness and other characteristics; fabric pieces are checked for defects; and the fastness of finishes
and colours to various conditions is determined. Although it would not be feasible to test each yarn or fabric
piece produced, statistical techniques allow maintenance of quality within previously specified limits, and the
introduction of automatic testing devices has greatly reduced testing time and cost. Methods for assessing such
properties as dimensions, strength, and porosity have been established, and their validity is generally accepted
within the industry. Standards are available for colourfastness, although such important properties as water-
repellence, resistance to creasing, and flame resistance are presently more difficult to define, and various
organizations have adopted their own test procedures. It is important, for example, that a fabric described as
flame-resistant should conform to some specification in which the meaning of flame resistance is clearly
defined.

Some manufacturers attach trademarks and quality labels to tested goods, and licensed trademarks are often
associated with particular processes for which the manufacturer has been granted a license. The terms of the
license require the manufacturer to ensure that his products meet the standards laid down by the proprietors of
the particular process.

Indian footwear industry

India is the largest global producer of footwear after China, accounting to approx. 13% of world footwear
production, which is close to 16 billion pairs. This means that the average consumption globally is about 2-3
pairs/person. India produces approximate 2,000 Million pairs annually in different categories of Footwear. India
exports about 115 million pairs, thus nearly 95% of its produce meets its own domestic demand.

With an estimated global population of 7-8 billion, India constitutes a share of approx. 15%, which means 1.2 to
1.3 billion feet needs to be covered from heat, cold, injuries, protection etc. Footwear sector is a very significant
segment of Leather and Non Leather products in India.

Size of Indian Domestic Footwear Industry is estimated to be worth 20-25,000 crores where leather and non-
leather Footwear per capita consumption is estimated to be approx. 1.1 pairs. In addition to this,
Slippers (Hawaii Chappals) segment is close to 10000 crores with per capita consumption are estimated to be 1
pair.
Our immediate Asian Neighbours reflect good per capita consumption between 3-4 pairs, whereas the
developed nations such as US, EU, UK etc. enviably enjoy a far better per capita of 7 to 8 pairs.

The challenge for Indian Footwear Industry is lit large but anticipating India to become amongst top 5
Superpowers in 2030, our consumption rates can reach as high as 7-8 Pairs. In such a scenario, India would
need to produce anywhere between 8-10 billion pairs consider yearly population growth.

Consolidating mid-term status by 2020, the potential target for Indian Footwear Industry will equalize
consumption pattern of 3-4 pairs. With six/seven years to go, we need to scale our production from current level
of 2 billion pairs to nearly 5 billion pairs at a CAGR rate of 30-40%.

Favourably for us, India ranks No.1 in milk production & we have the largest resource of cattle population in
the world. Additionally, on the strength of raw material available domestically, the large pool of skilled and
unskilled manpower, we have all the capability to take this challenge head on.

Given this backdrop of homogeneous potential it would not be an exaggeration to say that Footwear Sector is
today, on engine of incremental growth. With global integration of Indian Industry, rapid change in lifestyle,
income growth at bottom of the wealth pyramid, Footwear industry is expected to grow leaps and
bounds. Sadly, overall industrial growth remains moderate and is struggling to take off due to lingering on
infrastructural constraints. For the Indian footwear to explode and deliver, favourable government policies,
infrastructure, removal of high doses of taxation, infrastructural support in capacity building, skill education and
technology up gradation, brand building exercise should be initiated expeditiously no later than now.

Be it the Chinese lotus shoes, Japanese kobo‘s, Roman gladiators or Indian mojari– the fetish for stylish footwear
is age-old. Societies all over the world have exhibited their culture through their couture. Cultural beliefs, values
and traditions have always reflected upon the elements of our outer appearance, and footwear is no exception.

History of Indian footwear In feudal China the social status of people could be perceived from the shoes they
wore. In the Southern Dynasty, ordinary people wore shoes made of fibre cloth, which was usually exclusively
blue, green or white, whereas nobles wore leather and silk shoes.
And in India padukas or toe-nob sandals were worn by holy gurus. This simplistic style of footwear was made in
religiously symbolic shapes, like fish. Meanwhile, Indian kings and queens wore juttis or clothed shoes, which
were embroidered with precious gems, pearls, silver and gold threads.
The word pada (‗foot‘) is cited in the ancient Hindu scripture — Rigveda, as representing the universe namely
the Prithvi (earth), Vayu (air), Akash (sky) and the element of the realm beyond the sky.
In the Hindu epic Ramayana, King Dasaratha who had a curse on him, sent his son Rama (an incarnation of god
Vishnu) for 14 years of exile, at the behest of his wife Kaikeyi (step mother of Rama) as she wanted her son
Bharata to be crowned as the king. Rama, his consort Sita and brother Lakshmana went into a forest to spend
their period of exile. But Bharata did not want to have the kingdom. He, therefore, met Rama who was living in
the forest and beseeched him to return to Ayodhya. When Rama told Bharata that he will return only after
completing his fourteen years in the forest, Bharata requested for Rama‘s padukas to serve as his proxy, to be
crowned in Ayodhya Raj Sing Hasan (King‘s throne) of Kosala country and to serve as an object of veneration
for Rama‘s followers.
Bharata carried Rama‘s golden sandals (padukas) with great reverence by placing them on his head as a mark of
his obedience to his elder brother. Bharata ruled Kosala as Rama‘s proxy in the name of ―Ram‘s Padukas‖.

In the chilly Himalayan mountain northern regions of India, a variety of boots and shoes have been made over
the centuries to protect the feet from cold and rainy weather. These boots and shoes are made of leather, wool,
and plant fibers. But since the weather in most of India is warm, shoes were not necessary, and for much of
history, Indians went barefoot. Without the need for footwear, Indian culture developed a unique history of
praising the feet. Mothers massage the feet of their babies. Youth honour the feet of elders. Someone seeks
forgiveness at the feet of his or her victim. Lovers caress each other's feet to show their devotion. Indians
traditionally keep their feet as clean as their hands, and even today villages often have at least one craftsman
devoted to the manufacture of products to clean the feet, especially foot scrubbers made of stone or metal.
Literature written as early as 2500 bocce. documents the use of toe rings, ankle bracelets, and foot ornaments.
Indian religious and romantic literature abounds with references to the power of the feet, indicating their cultural
significance.

But in the areas of India where shoes are not necessary because of the warm weather, footwear, although not
worn daily, has become an important part of religious devotion and other ceremonies. Ceremonial footwear is
beautifully made, decorated with embroidery, inlaid with precious stones and metals, and adorned with bells and
tassels. Feet are also painted, dyed, and covered in ornament for special occasions. Footwear used for ceremony
varies from region to region due to India's many different ethnic and cultural groups. Some of the most common
types of shoes worn in India are toe-knob sandals called padukas, strapped sandals referred to as chappals,
pointed shoes known as juttis, and tall boots called Kapuas.
Different type of traditional Indian footwear presently, trends in the shoe industry are focused on
integrating historic designs with new age contemporary patterns. Shoemakers around the world are pioneering
the art of incorporating traditionally worn footwear into mainstream contemporary fashions and functional
footwear into style statements with a touch of panache.
Juttis are one such traditional style of footwear that have retained its shape, style and heritage through all these
years of civilization. Jutti or nagra was first patronized by the Mughals and were extremely popular amongst the
kings and the queens who belonged to the richest era of Indian history. Rajasthan in particular was a hub for
latest fashion trends in footwear, where the making of these exquisite shoes first originated. The style of Jutti
back then was far more ornate and richer in texture and design which incorporated fine gems, stones, and
precious pearls. With the passage of time, nagra shoes gained a lot of popularity in Punjab, and underwent
through various forms of experimentation and innovation.
―Jutti‖ (also spelled as Jhutti, Juthi, Juti) is an Urdu word for a shoe with a closed upper attached to a sole.
Inherently Punjabi and typically Indian, the jutti, also known as ‗mojari and ‗nagra‘, is traditional footwear worn
mostly in North India. Originally made out of pure leather and have exquisite embroidery and additional
embellishments that give it a unique appeal. From day to day wear, weddings, religious occasions, to parties and
festivals, juttis provide an essential ethnic appeal to the person wearing them. They are timeless fashion and make
a major part of the fashion industry.

The Process Of Making Juttis And Handmade Footwear In India

Exclusively handcrafted by skilled craftsman who primarily hail from Punjab, the making of Juttis is a tedious
task. Construction of one pair of juttis involve people from different communities: the ―Chama‘s‖, who process
raw hides which are used along with a vegetable dyeing process. The ―Ragnar‘s‖, colour and paint it while the
―Mochas‖ assemble the pieces together and do the final stitching and embroidery. Earlier, Juttis were
embroidered with pure gold and silver wires all over, popularly known as ‗till‗ covering the entire surface of the
pair.
The process begins at a tannery where raw hides are processed using the method of vegetable tanning. For this, a
substance called tannin, extracted from the bark of Kikkar or Babool trees, is used. It is in the tannery that an
animal hide becomes strong, flexible, water resistant and consequently, wearable.
For colouring, scrofula (yellow) and articulating (green) powdered pigments are mixed in water to create a thin
solution of different shades of red. These are then applied to the leather-pieces using a local shaving brush. After
this, the painted leather is cut out into different shapes according to the requirement of the shoe design and the
latest trend in shoe fashion. The shoe upper for instance, is made of one piece of leather or textile, embellished or
embroidered with cowries, mirrors, brass nails, bells, ceramic beads and other adornments. Clubbing the upper
and back (known as Addax) to the sole (known as Talla) is done using cotton thread which enmeshes the leather
fibers with efficiently.
Embroidering the jutti involves the use of stencils, for cutting and tracing designs on to the leather parts of the
shoes. They range from simple cut-out shapes to be filled with simple embroidery, to intricate punches, weaves
and embroidered designs.

Indian textile industry

The textile industry in India traditionally, after agriculture, is the only industry that has generated huge
employment for both skilled and unskilled labour in textiles. The textile industry continues to be the second-
largest employment generating sector in India. It offers direct employment to over 35 million in the
country. According to the Ministry of Textiles, the share of textiles in total exports during April–July 2010 was
11.04%. During 2009–2010, the Indian textile industry was pegged at US$55 billion, 64% of which services
domestic demand. In 2010, there were 2,500 textile weaving factories and 4,135 textile finishing factories in all
of India. to AT Kearney‘s ‗Retail Apparel Index‘, India was ranked as the fourth most promising market for
apparel retailers in 2009.
India is first in global jute production and shares 63% of the global textile and garment market. India is second
in global textile manufacturing and also second in silk and cotton production. 100% FDI is allowed via
automatic route in textile sector. Rieter, Trutzschler, Saurer, Soktas, Zambiati, Bilsar, Monti, CMT, E-
land, Nisshinbo, Marks & Spencer, Zara, Promod, Benetton, and Levi‘s are some of the foreign textile
companies invested or working in India.

The archaeological surveys and studies have indicated that the people of Harrapan civilization were familiar
with weaving and the spinning of cotton for as long as four thousand years ago. Reference to weaving and
spinning materials is found in the Vedic Literature. There was textile trade in India during the early centuries. A
block printed and resist-dyed fabric, whose origin is from Gujarat was found in the tombs of Foster, Egypt. This
proves that Indian export of cotton textiles to Egypt or the Nile Civilization in medieval times were to a large
extent. Large quantity of north Indian silk were traded through the silk route in China to the western countries.
The Indian silks were often exchanged with the western countries for their spices in the barter system. During
the late 17th and 18th century there were large export of Indian cotton to the western countries to meet the need
of the European industries during industrial revolution, apart from the domestic requirement at the Indian
Ordnance Factories.

Up until the 18th century, Mughal Empire was the most important centre of manufacturing in international
trade. Up until 1750, India produced about 25% of the world's industrial output. The largest manufacturing
industry in Mughal Empire (16th to 18th centuries) was textile manufacturing, particularly cotton
textile manufacturing, which included the production of piece goods, calicos, and muslins, available unbleached
and in a variety of colours. The cotton textile industry was responsible for a large part of the empire's
international trade. Bengal had a 25% share of the global textile trade in the early 18th century. Bengal cotton
textiles were the most important manufactured goods in world trade in the 18th century, consumed across the
world from the Americas to Japan. The most important centre of cotton production was the Bengal
Sabah province, particularly around its capital city of Dhaka.

Bengal accounted for more than 50% of textiles and around 80% of silks imported by the Dutch from Asia and
marketed it to the world, Bengali silk and cotton textiles were exported in large quantities to Europe, Asia, and
Japan, and Bengali muslin textiles from Dhaka were sold in Central Asia, where they were known as "daka"
textiles. Indian textiles dominated the Indian Ocean trade for centuries, were sold in the Atlantic Ocean trade,
and had a 38% share of the West African trade in the early 18th century, while Bengal calicos were major force
in Europe, and Bengal textiles accounted for 30% of total English trade with Southern Europe in the early 18th
century.

In early modern Europe, there was significant demand for textiles from The Mughal Empire,
including cotton textiles and silk products. European fashion, for example, became increasingly dependent on
textiles and silks imported from The Mughal Empire. In the late 17th and early 18th centuries, The Mughal
Empire accounted for 95% of British imports from Asia.
The Textile industry was the major component of economic income in India before the English colonies. "The
hand-loom and the spinning-wheel, producing their regular myriads of spinners and weavers, were the pivots of
the structure of that society," described by Karl Marx. Due to the abolishment of slavery in the Americas,
England began to search for another source of cheap cotton, and saw India as a ripe place for this. They
convinced many farmers to switch from subsistence farming to producing and exporting huge amounts of
cotton, after a long period of protectionism over the English textile industry. Eventually, through the technical
and marketing advances made possible by colonisation, the traditional method of artisan textile production was
destroyed, and replaced with large scale factory production.

Indian textile industry is one of the oldest industries in the country dating back several centuries. Even today,
textile sector is one of the most significant contributors to India‘s exports with approximately 13 percent of the
total exports. The industry is also labour intensive employing more than a million people in different fields.
The industry has two broad sectors which are – unorganized sector and the organized sector. The unorganized
sector consists of handloom, handicrafts and sericulture operating on a small scale, while the organized sector
consists of spinning, garments and apparels which requires modern machinery and techniques. Talking about
the market size the industry is currently estimated at around 120 billion US dollars and is expected to reach 230
billion US dollars. The Indian government is also coming up with some export promotion policies. It has
allowed 100 percent FDI in the Indian textiles sector under the automatic route.

With all the schemes and policies put into practice, the future of Indian textile industry looks promising, buoyed
by both strong domestic consumption as well as export demand. With the rise of consumerism and disposable
income, the retail sector has experienced rapid growth in the past decade. Several international players like
Marks & Spencer, Guess have raised the bar with their entry into the Indian market. With stable inputs, proper
capacity utilization and steady domestic demand, the industry is expected to showcase a kind of revolution in
the year 2018.
Let us run you through the history and prospects of this promising industry.

History of Indian textile industry Indian textile enjoys a rich heritage and traces its history back to the
Indus valley civilization where people used homespun cotton for weaving their clothes. One of our Veda‘s – the
Rigveda also contains the literary information about textiles. The Indian epics Ramayana and Mahabharata even
talk about the wide variety of fabrics in ancient India. These chronicles refer to both stylized garments worn by
the aristocrats and ordinary clothes worn by the common man. The modern-day textile not only reflects the
splendid past but also caters to the requirements of contemporary times.

Clothing and footwear industry, also called apparel and allied industries, garment industries, or soft-
goods industries, factories and mills producing outerwear, underwear, headwear, footwear, belts, purses,
luggage, gloves, scarfs, ties, and household soft goods such as drapes, linens, and slipcovers. The same raw
materials and equipment are used to fashion these different end products.

History

In the late Stone Age northern Europeans made garments of animal skins sewn together with leather thongs.
Holes were made in the skin and a thong drawn through with an instrument like a crochet hook. In southern
Europe fine bone needles from the same period indicate that woven garments were already being
sewn. Weaving and embroidery were developed in the ancient civilizations of the Middle East. The equipment
used in the fabrication of clothes remained simple and always lagged behind the development of techniques
for spinning and weaving. An important advance took place in the Middle Ages, when iron needles were
introduced in Europe.

All operations continued to be performed by hand until factory production of cloth was made possible by the
invention in the 18th century of foot- and water-powered machinery for spinning and weaving. This
development in turn stimulated the invention of the sewing machine. After several attempts, a practical machine
was patented in 1830 by Barthélemy Thimonnier‘s of Paris, who produced 80 machines to manufacture army
uniforms. Thimonnier‘s machines, however, were destroyed by a mob of tailors who feared unemployment.
Thimonnier‘s design used one thread; an American, Elias Howe, improved on it significantly with a lock-stitch
machine that used two threads, a needle, and a shuttle. Though patented there, it was not accepted in the States;
Howe took it to England, where he sold part of his patent rights. The objections of the American tailors and
seamstresses were overcome by a machine designed in 1851 by Isaac M. Singer of Pittstown, N.Y. When the
sewing machine was first introduced, it was used only for simple seams; the more complex sewing operations
were still done with a hand needle. The machines before Singer‘s were hand-powered, but Singer quickly
popularized foot-powered machines.
Before the second half of the 19th century, the fabric or leather sections of clothing and footwear were cut by
shears or by a short knife with a handle about 5 inches (13.5 cm) long and a 3-inch tapered blade. All pressing,
whether the finished press or underdressing (between sewing operations), continued to be done with the stove-
heated hand flatiron. The flatiron and the iron (later steel) needle were for a long time the only major advances
in making clothing and footwear since ancient times. Tailors and dressmakers used hand needles, shears, short
knives, and flatirons. Footwear was made by using hand needles, curved awls, curved needles, pincers, lap
stone, and hammers.

For many years the sewing machine was the only machine used by the clothing industry. The next major
development was the introduction in England in 1860 of the band-knife machine, which cut several thicknesses
of cloth at one time. It was invented by John Barren of Leeds, the founder of the Leeds clothing industry, who
substituted a knife edge for the saw edge of a woodworking machine. The resulting increased cutting
productivity motivated the development of spreading machines to spread fabric from long bolts in lays
composed of hundreds of plies of fabrics. The height and count of the lay depended on the thickness and density
of the fabric as well as the blade-cutting height and power of the cutting machine.

The first spreading machines in the late 1890s, often built of wood, carried fabrics in either bolt or book-fold
form as the workers propelled the spreading machines manually and aligned the superposed plies vertically on
the cutting table, thus making the cutting lay. Although most of the early machines operated with their
supporting wheels rotating on the cutting table, on some machines the wheels rode on the floor.

The Reece Machinery Company of the United States pioneered buttonhole machines at the end of the 19th
century; later the Singer Company developed its own buttonhole machines and machines for sewing on buttons.
The introduction of the Hoffman press enabled pressing to be done more quickly than by hand, although hand
pressing is still used at various stages for high-grade garments. All these developments made the factory
production of clothing economical in industrialized countries. Though the first manufactured garments were
shoddy in both make and materials, they were welcomed by poorer people, who previously had had to make
their own. As the industry developed, it improved the quality of production and materials and catered more and
more to the affluent.

Design in clothing and footwear

Clothing, headwear, footwear, and accessories businesses are the fashion industries par excellence. As such,
their goal is to give the wearer a sense of well-being based on being attractive to oneself and others. At the same
time, an inescapable function of fashion in most countries is to serve as a status symbol, a consideration leading
to the wardrobe concept in designing—that is, separate business attire, evening wear, casual clothes, spectator
sportswear, active sportswear, and other prescribed attire that clothing entrepreneurs and designers promote.

Designers use five elements to create a design that will stimulate the potential consumer to buy: (1) colour, (2)
silhouette, (3) drape, (4) texture, and (5) line balance on the product‘s surface. Design ideas are derived from
configurations or colour combinations or both in historical, ethnic, national, natural, geographic, and current
themes that can be advertised and promoted to boost sales. Besides choosing textiles and other raw materials
with specific properties and characteristics of colour, drape, hand, and texture, the designer selects findings—
buttons, zippers, snaps, grommets, thread, lace, tapes, braids, medallions, sequins, and a variety of ornaments
and closures—as decorative devices to impart the desired design effect. Line balance is generally achieved by
the sectional patterns of raw materials such as textiles and leather that the designer shapes to form the finished
product. Fashion in clothing and footwear operates in cycles, but with respect to design construction, clothing
and footwear may be lined, interlined, or unlined regardless of the cycle.

Designers use a variety of fitting forms for clothing, shoe lasts for footwear, and hat blocks for headwear,
approximating human anatomical dimensions. The basic patterns that fit the form, last, or block with minimal
seams and skin-tight precision form the foundation pattern. In the drafting method of designing style patterns,
the designer manipulates the foundation pattern to develop the style pattern, which is used to cut the raw
materials into the sections required for the garment. The drapery method is used by designers who prefer to
drape the actual material for the garment on the form, block, or last; cutting patterns for cutting the raw
materials are traced from the draped sections. Cutting patterns may be made of rigid or semi rigid paper or
plastics.

Pattern grading, making sets of patterns to fit a range of sizes, is the next step in the design process.
Anthropometric tables for sizing apparel have been compiled by various government agencies and other
sources. Formerly pattern grading was a completely manual drafting process, but in the 1950s pattern-grade
machines were invented to increase the speed of grade-drafting patterns.

These machines were manually paced; that is, they followed the lead of a draftsman. But in 1967 the
computerized grader machine was invented to grade and cut patterns directly from an original set, performing
automatically without manual contact with the drafting and cutting process. By 1970 various American, British,
and Japanese computerized graders were available, which automatically take measurements from a set of style
patterns, then grade, draft, and cut sets of patterns in the sizes desired. These computerized graders contain
memory banks of the anthropometric specifications required. Some computerized grading machines can provide
graded patterns in any of three media: acetate patterns for making photo markers; rigid plastic patterns for
conventional chalk, crayon, pen, pencil, or spray manual marking methods; or stack drafts, which put the entire
desired size range from smallest to largest, concentrically, on one sheet. In conjunction with any of these, the
computer can issue data sheets with costing and material usage per size or range. The actual processing of the
raw material begins after the patterns have been graded.

2.5 Challenges in the Footwear industry

Footwear industry has been largely unorganized and scattered in different parts of the country. Uttar Pradesh
and Tamil Nadu, being the biggest footwear related market. Though technology has marked its presence in the
modernization of the footwear industry, most of the production is still handmade. Major challenges in the
Footwear Industry:

1. Timely and efficient delivery of products

2. No stock rotation leading to outdated stock
3. Higher % of Customer Initiated Returns (CIR)
4. Increased cost of Reverse Logistics
5. Managing Multiple Warehouses and Stores
6. Easy transition to present Taxation policies
7. Managing Multichannel and Offline
8. Effective Utilization of stock
9. Seamless management of returns and cancellations
 CHAPTER 3

COMPANY PROFILE
3.1 HISTORY AND GOVERNING BODY
Adidas AG (German: stylized as Adidas since 1949) is a German multinational corporation, founded and
headquartered in Herozgenaurach, Germany, that designs and manufactures shoes, clothing and accessories. It
is the largest sportswear manufacturer in Europe, and the second largest in the world, after Nike. It is
the holding company for the Adidas Group, which consists of the Reebok sportswear company, 8.33% of the
German football club Bayern München, and Runtastic, an Austrian fitness technology company. Adidas'
revenue for 2018 was listed at €21.915 billion. The company was started by Adolf Dassler in his mother's
house; he was joined by his elder brother Rudolf in 1924 under the name Gebrüder Dassler
Schuhfabrik ("Dassler Brothers Shoe Factory"). Dassler assisted in the development of spiked running shoes
(spikes) for multiple athletic events. To enhance the quality of spiked athletic footwear, he transitioned from a
previous model of heavy metal spikes to utilising canvas and rubber. Dassler persuaded U.S. sprinter Jesse
Owens to use his handmade spikes at the 1936 Summer Olympics. In 1949, following a breakdown in the
relationship between the brothers, Adolf created Adidas, and Rudolf established Puma, which became Adidas'
business rival.
The three stripes are Adidas' identity mark, having being used on the company's clothing and shoe designs as a
marketing aid. The branding, which Adidas bought in 1952 from Finnish sports company Karhu Sports for the
equivalent of 1,600 euros and two bottles of whiskey, became so successful that Dassler described Adidas as
"The three stripes company".
Early days
The company was founded by Adolf "Adi" Dassler who made sports shoes in his mother's scullery or laundry
room in Herozgenaurach, Germany after his return from World War I. In July 1924, his older
brother Rudolf joined the business, which became "Dassler Brothers Shoe Factory" (Gebrüder Dassler
Schuhfabrik). The electricity supply in Herozgenaurach was unreliable, so the brothers sometimes had to use
pedal power from a stationary bicycle to run their equipment.
Dassler assisted in the development of spiked running shoes (spikes) for multiple athletic events. To enhance the
quality of spiked athletic footwear, he transitioned from a previous model of heavy metal spikes to utilising
canvas and rubber. In 1936, Dassler persuaded U.S. sprinter Owens to use his hand made spikes at the 1936
Summer Olympics. Following Owens' four gold medals, the name and reputation of Dassler shoes became
known to the world's sportsmen and their trainers. Business was successful and the Dasslers were selling
200,000 pairs of shoes every year before World War II.
Both Dassler brothers joined the NSDAP in May 1933 and became also members of the National Socialist
Motor Corps.Furthermore, Adolf took the rank of Sportwartin the Hitler Youth from 1935 until the end of the
war. During the war, the company was running the last sport shoe factory in the country and predominantly
supplied the Wehrmacht with shoes. In 1943 the shoe production was forced to cease operations and the
company‘s facilities and workforce was used to manufacture anti-tank weapons. From 1942 to 1945 at least
nine forced labourers were working at both sites of the company.
The Dassler factory, used for production of anti-tank weapons during the Second World War, was nearly
destroyed in 1945 by US forces, but was spared when Adolf Dassler's wife convinced the GIs that the company
and its employees were only interested in manufacturing sports shoes. American occupying forces subsequently
became major buyers of the Dassler brothers' shoes.
Split and rivalry with Puma
The brothers split up in 1947 after relations between them had broken down, with Rudolf forming a new firm
that he called Ruda – from Rudolf Dassler, later rebranded Puma, and Dassler forming a company formally
registered as Adidas AG from Adi Dassler on 18 August 1949. An urban myth has promulgated
the backronym All Day I Dream About Sports.
Puma SE and Adidas entered into a fierce and bitter business rivalry after the split. Indeed, the town of
Herozgenaurach was divided on the issue, leading to the nickname "the town of bent necks"—people looked
down to see which shoes strangers wore. Even the town's two football clubs were divided: ASV
Herozgenaurach club was supported by Adidas, while 1 FC Herozgenaurach endorsed Rudolf's footwear. When
handymen were called to Rudolf's home, they would deliberately wear Adidas shoes. Rudolf would tell them to
go to the basement and pick out a pair of free Pumas. The two brothers never reconciled and although they are
now buried in the same cemetery, they are spaced as far apart as possible.
In 1948, the first football match after World War II, several members of the West German national football
team wore Puma boots, including the scorer of West Germany's first post-war goal, Herbert Burdenski. Four
years later, at the 1952 Summer Olympics, 1500 metres runner Joys of Luxembourg won Puma's first Olympic
gold in Helsinki, Finland.
At the 1960 Summer Olympics, Puma paid German sprinter Armin Hary to wear Pumas in the 100 meter sprint
final. Hary had worn Adidas before and asked Adolf for payment, but Adidas rejected this request. The German
won gold in Pumas, but then laced up Adidas for the medals ceremony, to the shock of the two Dassler brothers.
Hary hoped to cash in from both, but Adi was so enraged he banned the Olympic champion.
CORPORATE IMAGE

In 1952, following the 1952 Summer Olympics, Adidas acquired its signature 3-stripe logo from the Finnish
athletic footwear brand Karhu Sports, for two bottles of whiskey and the equivalent of 1600 euros.
The Trefoil logo was designed in 1971 and launched in 1972, just in time for the 1972 Summer Olympics held
in Munich. This logo lasted until 1997, when the company introduced the "three bars" logo (that had been
designed by then Creative Director Peter Moore), initially used on the Equipment range of products.
TAPIE AFFAIR

After a period of trouble following the death of Adolf Dassler's son Horst Dassler in 1987, the company was
bought in 1989 by French industrialist Bernard Tapie, for ₣1.6 billion(now €243.9 million), which Tapie
borrowed. Tapie was at the time a famous specialist of rescuing bankrupt companies, an expertise on which he
built his fortune.
Tapie decided to move production offshore to Asia. He also hired Madonna for promotion. He sent,
from Christchurch, New Zealand, a shoe sales representative to Germany and met Adolf Dassler's descendants
(Amelia Randall Dassler and Bella Beck Dassler) and was sent back with a few items to promote the company
there.
In 1992, unable to pay the loan interest, Tapie mandated the Credit Lyonnais bank to sell Adidas, and the bank
subsequently converted the outstanding debt owed into equity of the enterprise, which was unusual as per the
prevalent French banking practice. The state-owned bank had tried to get Tapie out of dire financial straits as a
personal favour to Tapie, it is reported, because Tapie was Minister of Urban Affairs (minister de la Ville) in the
French government at the time.
Robert Louis-Dreyfus, a friend of Bernard Tapie, became the new CEO of the company in 1994. He was also
the president of Olympics de Marseille, a team Tapie had owned until 1993. Tapie filed for personal bankruptcy
in 1994. He was the object of several lawsuits, notably related to match fixing at the football club. During 1997,
he served 6 months of an 18-month prison sentence in La Santé prison in Paris. In February 2000, Credit
Lyonnais sold Adidas to Louis-Dreyfus for a much higher amount of money than Tapie owed, 4.485 billion
(€683.514 million) francs rather than 2.85 billion (€434.479 million). They also purposely bankrupted Tape‘s
company that owned Adidas, because only the company had the right to sue them.

POST-TAPIE ERA

In 1994, combined with FIFA Youth Group, SOS Children's Villages became the main beneficiary.
In 1997, Adidas AG acquired the Salomon Group who specialized in ski wear, and its official corporate name
was changed to Adidas-Salomon AG. With this acquisition Adidas also acquired the Taylor made Golf
company and Maxfli, which allowed them to compete with Nike Golf.
In 1998, Adidas sued the NCAA over their rules limiting the size and number of commercial logos on team
uniforms and team clothing. Adidas withdrew the suit, and the two groups established guidelines as to what
three-stripe designs would be considered uses of the Adidas trademark.
As CEO of Adidas, Louis-Dreyfus quadrupled revenue to 5.84 billion euros ($7.5 billion) from 1993 through
2000. In 2000, he announced he would resign the following year, due to illness.
In 2003, Adidas filed a lawsuit in a British court challenging Fitness World Trading's use of a two-stripe motif
similar to Adidas's three stripes. The court ruled that despite the simplicity of the mark, Fitness World 's use was
infringing because the public could establish a link between that use and Adidas's mark.
In September 2004, top English fashion designer launched a joint-venture line with Adidas, establishing a long-
term partnership with the corporation. This line is a sports performance collection for women called "Adidas by
Stella McCartney", and it has been critically acclaimed.
Also, on 3 May 2005, Adidas told the public that they sold their partner company Salomon Group for €485m
to American Sports of Finland. In August 2005, Adidas declared its intention to buy Reebok for $3.8 billion
(US$). This takeover was completed with partnership in January 2006 and meant that the company had business
sales closer to those of Nike in North America. The acquisition of Reebok also allowed Adidas to compete with
Nike worldwide as the number two athletic shoemaker in the world.
Adidas has global corporate headquarters in Germany, and many other business locations around the world such
as Portland OR, Hong Kong, Toronto, Taiwan, England, Japan, Australia, and Spain.

In 2005, Adidas introduced the Adidas 1, the first ever production shoe to use a microprocessor. Dubbed by the
company "The World's First Intelligent Shoe", it features a microprocessor capable of performing 5 million
calculations per second that automatically adjusts the shoe's level of cushioning to suit its environment. The
shoe requires a small, user-replaceable battery that lasts for approximately 100 hours of running. On 25
November 2005, Adidas released a new version of the Adidas 1 with an increased range of cushioning, allowing
the shoe to become softer or firmer, and a new motor with 153 percent more torque.
On 11 April 2006, Adidas announced an 11-year deal to become the official NBA clothing provider. The
company has been making NBA, NBDL, and WNBA jerseys and products as well as team-coloured versions of
the "Superstar" basketball shoe. This deal (worth over $400 million) took over the previous Reebok deal that
had been put in place in 2001 for 10 years.
In November 2011, Adidas announced that it would acquire outdoor action sport performance brand Five Ten
through a share purchase agreement. The total purchase price was US$25 million in cash at closing.
By the end of 2012, Adidas was reporting their highest revenues ever and Chief Executive Herbert Hainer
expressed optimism for the year ahead.
In January 2015, Adidas launched the footwear industry's first reservation mobile app. The Adidas Confirmed
app allows consumers to get access to and reserve the brand's limited edition sneakers by using geo targeting
technology
On 24 March 2015, Adidas and McDonald's unveiled the 2015 McDonald's All-American uniforms. For the
third year in a row, players will be wearing short-sleeved jerseys, made with the same lightweight and
breathable material as the ones used in the NBA.
In August 2015, Adidas acquired fitness technology firm Runtastic for approximately $240 million.
In May, 2017 Adidas sold Taylor Made golf company (including Ashworth) to KPS Capital Partners for $425
million.
company (including Ashworth) to KPS Capital Partners for $425 million.

3.2 MISSION AND VISSION

Mission
The Adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion
for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to
improve our competitive position.
Vission
We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with
every product we bring to market.
We are consumer focused and therefore we continuously improve the quality, look, feel, and image of our
products and our organizational structures to match and exceed consumer expectations and to provide them with
the highest value.
We are a global organization that is socially and environmentally responsible, that embraces creativity and
diversity, and is financially rewarding for our employees and shareholders.
We are dedicated to consistently delivering outstanding financial results.

3.3 PRODUCT PROFILE

APPAREL

Adidas sells a range of clothing items, varying from men's and women's t-
shirts, jackets, hoodies, pants and leggings.
The first Adidas item of apparel was the Franz Beckenbauer tracksuit created in 1967.Adidas AG is the largest
manufacturer of sports bras in Europe, and the second largest manufacturer in the world.
SPORTSWEAR

ASSOCIATION FOOTBALL

One of the main focuses of Adidas has always been football kits, and the associated equipment. Adidas remains
a major company in the global supply of team kits for international association football teams and clubs.
Adidas makes referee kits that are used in international competition and by many countries and leagues in the
world. The company has been an innovator in the area of footwear for the sport, with notable examples
including the 1979 release of the Copa Mundial moulded boot used for matches on firm dry pitches. It holds the

accolade of the best selling boot of all time. The soft-ground equivalent was named World Cup and it too
remains on the market.

Since 1970, FIFA, the world governing body of football, has commissioned specially designed footballs for use
in its own World Cup tournaments. The Adidas Telstar was the first ball commissioned for the World Cup in
1970. The balls supplied for the 2006 World Cup, the "Team Geist", were particularly noteworthy for their
ability to travel further than previous types when struck, leading to longer range goals. Goalkeepers were
generally believed to be less comfortable with the design of the ball, claiming it was prone to move significantly
and unpredictably in flight.
Adidas introduced the Jaborandi for the 2010 World Cup. The ball was designed and developed
by Loughborough University in conjunction with Bayern Munich. The Adidas Brazuca for the 2014 World
Cup was the first World Cup ball named by the fans.
Adidas is one of the official sponsors of the UEFA Champions League, and the Adidas Finale is the
competition's official match ball. Along with the aforementioned Adidas Predator boot, Adidas manufactures
the adiPure range of football boots. Adidas named an official match ball of the UEFA Euro 2016 tournament
the Adidas Beau Jeu which translates to "The Beautiful Game" in English. Adidas provides clothing and
equipment for all teams in Major League Soccer.

BASEBALL

Adidas has also provided baseball equipment and sponsors numerous players of Major League
Baseball and Nippon Professional Baseball in Japan.
Adidas Baseball hardwoods are licensed to Dick's Sporting Goods.
From 1997 to 2008, Adidas sponsored New York Yankees.

BASKETBALL

Adidas' Superstar and Pro Model shoes, affectionately known as "shelltoes" for their stylized hard rubber toe
box, were fuelled by, among others, coaches such as UCLA's John Wooden. Adidas drew about even
with Converse in basketball by the mid 1970s before both started to fall behind then-upstart Nike in the early
1980s. Subsequently, Adidas Superstar became very popular in the 1980s hip hop streetwear scene alongside
Adidas's stripe-sided polyester suits.
From 2006 to 2017, Adidas was the uniform supplier of all the 30 teams in the National Basketball Association,
replacing the Reebok brand after Adidas' acquisition of Reebok. Adidas was replaced by Nike as the official
uniform supplier of the league after the 2016–17 season.

CRICKET

Adidas began manufacturing cricket footwear in the mid 1970s, with their initial target market being Australia.
Their shoes were a radical departure from traditional leather cricket boots which had remained basically
unchanged for decades, being lighter and more flexible but also offering less toe protection, so that it became
not uncommon to see batsmen who had been struck by the ball on the foot hopping around in pain. Having
continued to manufacture cricket footwear for many years, in 2006 the company finally entered the field of bat
manufacture in 2008 and currently their bat range includes the Pellara, Incurza, Libro and M-Blaster models.
In the 1990s, Adidas signed the superstar Indian batsman Sachin Tendulkar and made shoes for him. From 2008
until his retirement, Adidas had sponsored the cricket bat used by Tendulkar. It created a new bat, 'Adidas
Master Blaster Elite', personalized for him.
In 2008, Adidas made a concerted move into English cricket market by sponsoring English batting star Kevin
Petersen after the cancellation of his lifetime deal with Woodworm, when they ran into financial
difficulties. The following year they signed up fellow England player Ian Bell, Pakistan opening
batsman Salman Butt and Indian Player Rabindranath.
In the Indian Premier League (IPL), Adidas sponsored the team Mumbai Indians from 2008 to 2014 and Delhi
Daredevils from 2008 to 2013. They were the official sponsors of Pune Warriors India in 2011 and 2012,
however the team was banned from IPL due to payment issues. In 2015 Season, Adidas sponsored Royal
Challengers Bangalore.
GOLF
Adidas Golf manufactures golf clothing, footwear, and accessories. Men's and women's equipment includes
footwear, shirts, shorts, pants, outerwear (wind suits), base layer and eyewear.
GYMNASTICS

From 2000 to 2012, Adidas has provided men's and women's gymnastics wear for Team USA, through USA
Gymnastics. USA Gymnastics and Adidas sponsorship concluded at the end of 2012. In 2006, Adidas
gymnastics leotards for women and Adidas men's competition shirts, gymnastics pants and gymnastics shorts
have been available in the United States, with seasonal leotards offered for Spring, Summer, Fall and Holidays.
Adidas previous collaborated with GK Elite, since Spring 2013, Adidas gymnastics products have been
available worldwide through Elegant Sports. USA Olympic team members McKayla Maroney, Jordyn
Wiener, Jake Dalton and Danell Leyva are all sponsored by Adidas gymnastics.
ICE HOCKEY

Adidas has been providing uniforms for the National Hockey League since the 2017-18 season, replacing
Reebok.
LACROSSE

In 2007, Adidas announced its entering to the lacrosse equipment, also sponsoring the Adidas National Lacrosse
Classic in July 2008 for the top 600 high school underclassmen players in the United States. The company made
their self into their own brand such as "Adidas Lacrosse", getting several scholarships, Bucknell (men and
women), Bryant (men), Delaware (men and women), New Jersey Institute of Technology (men), and D3
powerhouse Lynchburg (men and women in fall of 2016 with soft good only)". Materials that Adidas provided
were jerseys, shorts, shoes, shafts, heads, gloves, and protective pieces.
Products manufactured for the sport are sticks, gloves, protective gear and boots.
RUNNING

Adidas currently manufactures several running and lifestyle shoes, including the Energy-boost, and the spring-
blade trainers.]I The brand has built a strong runners' network within big European capitals, such as Paris'
"Boost Energy League". In 2016 the 3rd season launched. In Paris, the Boost Energy League gathers 11 teams
representing different districts of Paris.
Adidas launched two new colour ways of the NMD R1 and one new colour way of the NMD XR1 in September
2016. Adidas EQT is a style of sneakers from Adidas. It originated in the early 90s and relaunched in 2017. The
latest Adidas EQT line released in a "Turo Red" Pack on 26 January 2017, and included models such as the
Adidas EQT Support 93/17, EQT Support ADV, and EQT Support Ultra. adidas.com is one of the few online
retailers. I
n November 2016, Adidas teased a sneaker made from ocean plastic. The shoe is created from a fabric called
"Bio steel". The shoe is called the "Adidas Future craft Bio fabric." The material used is 15% lighter than
conventional silk fibers, and is 100% biodegradable. The shoe only begin to dissolve when it is put in contact
with a high concentration of the digestion enzyme proteinase, which occurs naturally. Once this happens, the
shoes can decompose within 36 hours. The shoe was never released.
SKATEBOARDING

Adidas Skateboarding produces shoes made specifically for skateboarding, including the redesign of previous
models for skateboarding. The brand also releases signature models designed by team riders.
TENNIS

Adidas has been involved with tennis equipment since the mid 1960s and has historically sponsored many top
tennis players, beginning with two of the most dominant male tennis players at the start of the professional era
in the late 1960s, Stan Smith and Ilie Nastase. During the 1980s and 1990s, not only were they exclusive
apparel and footwear sponsors of world number one men's tennis players Ivan Lendl and Stefan Edberg and
ladies' world number one Steffi Graf but each player had their own, exclusive graphic styles designed for their
use during play, which were in turn marketed to the general public. Ivan Lendl even spent the vast majority of
his dominant career playing with several different models of Adidas tennis racquets, primarily using the
legendary Adidas GTX-Pro and then later the Adidas GTX Pro-T. The company recently introduced a new line
of tennis racquets. While the Feather is made for the "regular player", and the Response for the "club player",
Adidas targets the "tournament player" with the 12.2 Oz Barricade tour model.
KABADDI

Adidas entered Kabaddi which is still a non-Olympic sport but highly popular in the Indian subcontinent and
Asian countries. In 2014, with the launch of Pro Kabaddi League a city based franchise league in India, kabaddi
took the region with storm. In 2015, they tied up with Mumbai-based franchise U Mumbai.
"The association of kabaddi with Adidas is a clear exemplification of the growth of the sport over the last two
years," shared U Sports CEO, Supratik Sen.

ACCESSORIES

Adidas also designs and makes slide-style sandals, mobile accessories, watches, eyewear, bags, baseball caps,
and socks. As well, Adidas has a branded range of male and
female deodorants, perfumes, aftershave and lotions.
Adidas announced they would be launching a new $199 Fit Smart wristband in mid-August 2014. The
wristband will pair with Adidas's miCoach app, which acts as a personal trainer.

ADILETTE

Adilette was the first ever pair of sandals made by Adidas, originally developed in 1963. Adidas claims that a
group of athletes approached Adi Dassler requesting a shoe be made for the locker room. To this day, the
resulting sandals are a best-seller. Since the original navy blue and white Adilette sandals were created nearly
fifty years ago, more varieties have been created in different colours (black, red, green, grey, orange, brown,
yellow, pink, golden, silver). Most recently, Adidas has introduced a colour scheme that goes along with its
Predator and adizero line; the scheme is dubbed warning (orange) and purple. Usually, the three stripes appear
in the contrasting colour on the strap of the classic models. The most common adilette livery is in navy blue or
black, mixed with white colours. Also the Woodilette and Trefoil models follow a similar design but without
stripes on the strap.
The model provides a contoured orthopaedic rubber sole with synthetic upper, and was designed as an après-
sport slide, but the adilette were quickly adopted outside of the sporting world.

SANTIOSSAGE

The Santiossage is a slide-style sandal. The sandal has the trademarked three stripes on a Velcro strap toward
the front of the shoe. comes in black, navy, or red. On the side of the shoe, toward the heel on either side, the
manufacturer's name appears, as well as on a round emblem in the actual heel of the foot-bed. Notably, there are
tiny clear massage nubs throughout the foot-bed for the purpose of massaging after-sport foot aches, although
the sandals are worn casually among non-athletes. Seen through these clear nubs are Adidas' three stripes.
ADISSAGE

Adissage is also a slide sandal. Available in black, navy, light blue, black with pink, and other assorted colours,
the sandal has the trademarked three stripes on a Velcro strap toward the front of the shoe. On the side of the
shoe, toward the heel on either side, the manufacturers name appears, as well as on a round emblem in the actual
heel of the footbed. Like the Santiossage, there are tiny black massage nubs throughout the foot-bed for the
purpose of massaging foot aches after sport, although popular as a casual sandal amongst non-athletes as well.

3.4 COMPETITORS

Adidas is a German multinational brand that designs and manufactures sports footwear, apparels and related
accessories for athletes, sports enthusiasts and fitness lovers. Adidas was founded in 1920 with the name of
Dassler Brother Shoe Factory and named as Adidas since 1949. After Nike, which is the world leading brand of
footwear, Adidas stand the second largest brand in the world. Adidas most valuable acquisition was Reebok
Sportswear Company which took place in 2005 for $3.8 billion. This acquisition allowed Adidas to compete
Swoosh Nike.
Let us discuss for key facts and figures of Adidas. The mission of Adidas is to be the best sports company in the
world. The company‘s worldwide employees are 56,888 that comprising 50% male and 50% female. Adidas has
produced 900 million units worldwide in 2017. The net sale made by Adidas was €21.218 billion in 2017 and
investing €187 million in R&D. Adidas brand is a huge success but still having strong competition in the marke
up.

Competitors of Adidas

NIKE
Do you know which brand is the world‘s leaning footwear and clothing brand? Your answer should be none
other than Nike. It is the most trusted brand looking for inspiration and invocation in the life of every person
who has a body.
Nike Inc. was incorporated in 1969 that designs, manufacture, market and sells sports footwear, apparel and
other related accessories and services. Nike Brand, Converse, Hurley and Jordan Brand are the portfolio brands
of the company. Nike is a great success through its product innovation and superior quality. Nike is the Top
competitor of Adidas.
NIKE Brand Valuation. $122.3 billion

PUMA
PUMA is worth mentioning and one of the strong Adidas competitors. The reason is that once Puma and Adidas
were operated under the brand name of Gebrüder Dassler Schuhfabrik by Rudolf and Adolf. Later on their
relations were deteriorated and separate the entity in to two companies Adidas and PUMA. Now PUMA is
competing with Adidas brand in the market.
PUMA designs and manufactures, distributes and sales lifestyle and sports products i.e. footwear, apparel and
other related accessories. PUMA brand categories consist puma, Tretorn and cobra golf. Both Scandinavian
Tretorn Group and Cobra Golf were acquired by PUMA in 2001 and 2010 respectively.
PUMA Brand Valuation. $6.8 billion
UNDER ARMOUR
The third in the competitor list is Under Armour. Another successful brand in the category of sports, footwear
and casual apparel founded in 1996. The company shows great commitment and become leader in the apparel
and footwear industry. According to the company annual report, it the business activities of UA is to develop,
market and distribute footwear, performance apparel and related accessories for women, men and youth. From
youth to professionals, Under Armour products are worn by athletes and active lifestyle consumers. Its 66%
revenue was generated by apparel products and by region and North America produced 76% revenue. Without
any doubt Under Armour is a strong competitor of Adidas.
Under Armour Brand Valuation. $9 billion

NEW BALANCE
New Balance is an American multinational brand that maintained its manufacturing presence in the United
States and United Kingdom. This company products are more expensive than its competitors like Adidas, Nike
and Under Armour. The reason behind premium pricing is the product quality and technology integration also
because USA and UK consumers always prefer high quality products. New Balance is a tough competitor of
Adidas and my popular brands in the footwear and apparel category.

ASICS
ASICS founded in 1949 with the committed to contribute to society through sports. ASICS is Japanese brand
engaged in developing, manufacturing and selling of sports goods. The ASICS target market is United States,
Australia and United Kingdom. The ASICS announced an online platform for Indian market in December 12,
2018. In 2011 the ASICS replaced Adidas and became official kit manufacture for Cricket Team of Australia.
ASICS is amongst many competitors of Adidas.

FILA
Fila is a Korean based sport company that manufactures and distributes both sports and leisure footwear and
apparel. Fila is a good choice for middle class people who are the major population of any society. Fila has a
rich background and remained an important part of several sponsorship e.g. Australian cricket team, Korean
football team and many other. The company regularly sponsors events and many athletes and sports
personalities are its brand ambassadors.

HANESBRANDS
Hanesbrands is an American apparel brand that designs, manufacture and sells different type of apparels to men,
women and youth. There are four basic segments of the company Innerwear, active wear, direct to consumer
and international. The Hanesbrands target market is United Kingdom, Italy, France, Spain and Germany. In the
apparel segment it is one of Adidas competitors.

FOOT LOCKER
Foot Locker is another competitor of Adidas brand. Foot Locker is an American athletic footwear and apparel
retailer situated in New York City, They are operating two different segment. The athletic stores through retails
and direct to consumer segments through its website and catalogue. It has more than 3000 stores that are
located in United Stated, Canada, Asia, Middle East and Europe. The company showed great commitment and
ranked 348 on fortune500 list.
LI NING
Li Ning is a Chinese company that manufacture sports footwear and sports goods. Both in China and different
parts of the world Li Ning has many endorsements. In the Chinese market Li Ning is the main Adidas
competitors, who are generating 19.8 and 16.8 percent market share respectively, and domestic brand Anta with
8% of market share. As a part of marketing strategy the company is aggressively engaged in contracts and
endorsements with different players and sports team.

ANTA
Anta is a Chinese sportswear company that designs and manufactures and distributes and sells sports footwear,
clothing and related accessories under the brand name of ANTA. This sports company is the sponsor and
supplier of many sports teams, athletes and associations. Among Chinese sports brands Anta holds the number
one position and in the overall Chinese market after Nike and Adidas ANTA hold the third place with 8 percent
market share. We can say that Anta is one of the top Adidas competitors of Adidas and Nike in the Chinese
market. Anta also buys and distribute international brands like Fila and Descente.

3.5 BUSINESS STRATEGY OF ADIDAS

Business strategy has a very important role in the making of any market leading brand. The 21st century
marketplace is highly competitive and to stay ahead of others you need a strong business strategy. Changes
happen fast in the business world. However, strategy is at the foundation of everything you need to excel in a
highly competitive and fast changing business environment. In this article, you will read about the business
strategy adopted by Adidas for market growth. During the recent years, Adidas has made several changes to its
business strategy for achieving faster growth worldwide.
Nike is currently dominating the market, but the sales of Adidas have grown fast. The brand is gearing up for a
high jump in the near future. Its new business strategy encompasses several things from changing the
company‘s strategic focus, to creating more sustainable products and technological innovation. Adidas is aiming
to become the first true fast sports company of the world. Speed is a very important element and at the core of
its new business strategy. It also aims to leverage its scalable operating model to grow its income faster and
derive better financial and operational results. The financial results of 2017 prove that these changes have
started bearing results better than expectations and if Adidas can sustain the momentum, it could reduce the gap
between itself and Nike faster.
An overview of the Sports shoe industry:
The US Sports shoe industry is being shaped by at leisure trends. It is seeing fast growth and high level of
competition. In 2017, it achieved a growth of 2% in terms of unit sales and generated $19.6 Billion in sales.
Looks like ladies have been shopping the most because the ladies footwear category was the one to have
achieved the highest growth in sales of around 5% compared to the previous year. Men‘s and Kid‘s sports shoes
saw a growth of 1% each. Sports leisure is now the largest category in US athletic footwear. Among the best
selling brands in the U.S. market were Nike/Jordan, Adidas Sketchers, Under Armour and New Balance. While
Nike and Jordan continued to rule the top ten best sellers in the U.S. market, Adidas also made it to the list. Two
of Adidas models made it to the top ten. However, in terms of sales, Adidas that achieved the highest growth.
The global sports shoe industry has also seen similar changes happening at a fast rate. In 2015, the global
footwear industry was valued at 75.2 Billion dollars. However, it is expected that by 2023, this value would
have crossed the $115.6 Billion mark. One central factor supporting fast growth of sports shoe industry
worldwide is the rising health consciousness. Globally, the population of millennials is highly health conscious.
Apart from fitness trends, growth in gym and sports infrastructure across the urban areas, has supported the
growth of this industry. The two markets that are leading in terms of overall sales are Europe and North
America. However, a large proportion of sales are also coming from the fast growing Asian economies. Nike
has steadily continued to dominate the sports shoe and apparel market. However, Adidas has also made a strong
return, by growing financial investment in innovation and digital technology. 2017 financial performance of
Adidas tells an exciting story of fast growth and exceptional financial performance. Its higher focus on
innovation, digital technology and sustainability has started paying off and one can expect Adidas to perform
better in future.

Key Elements in Adidas Business Strategy:

– Corporate Strategy – Creating the new.
– Focus on Sustainability
– Investment in Digital
– Marketing for higher impact
– Effectively managing the supply chain
– Focus on key urban markets

Corporate Strategy
Adidas‘ mission is to be the best sports company in the world. Being the best means making best in class
products and serving the customers in the best manner possible. Its new strategic business plan is termed ―
Creating the new‖. At the core of this plan is Adidas‘ ambition to drive top and bottom growth further by
increasing the brand desirability significantly. The focus therefore is how the brands connect and engage with
the customers. However, to achieve its new business plan, the brand has also focussed on the creation of a
performance culture. The new strategic plan of Adidas is built around three strategic choices – speed, cities and
open source.

Speed:
Brand desirability at Adidas begins with customers. The customers are at the centre of everything it does and
focuses on saving them in the best possible manner. However, this also includes speeding things up so the
consumers can find fresh and desirable products where and when they want and a matchless shopping
experience. This requires Adidas to be able to anticipate consumers‘ desire and to react fast to it. Speeding
things up and being fast to react to consumers‘ demand will enable it to grow faster by giving it . There are three
Pillars of the Speed program which are never out of stock, planned responsiveness and in season creation. Since
the creation of this program the coverage has been expanded continuously. Now, it has completely on boarded
all the markets and programs and the brand has started capitalising on the benefits of all the SPEED Programs.
The net sales share of products supported by the SPEED program has also continued to rise. Apart from
speeding things up in the existing supply chain of Adidas, the brand is also exploring new disruptive business
models and technologies.
Cities:
World‘s biggest cities contribute to the largest part of the world‘s GDP. It is why Adidas has focused
specifically on major cities. It started from London, Los Angeles, New York, Paris, Shanghai and Tokyo. It
aims to create an end to end ecosystem connecting consumers with relevant products. These key cities also
provide platforms for the activation of ADIDAS brands. Some of the major successes in this area include
‗Green Light Run‘ in Tokyo, receiving six Cannes awards, as well as the Parley ‗Run for the Oceans‘ in New
York City and the launch of our new football footwear franchise Nemesis in London. Apart from generating
excitement in the respective cities, these events also got excellent social media coverage all throughout the
globe. Focusing on consumer experience in these cites has helped brands find growth faster. In 2017, these
cities made an above average contribution to the overall growth of the company and its market share.

Open Source:
The focus of ‗Open Source‘ is to let consumers enjoy higher participation in the products Adidas makes. This
part is about learning and sharing and inciting conversations between the brand, external experts and consumers.
Three strategic initiatives started for Open Source are creative collaboration, athletic collaboration and partner
collaboration. Creative collaboration focuses on increased partnership between the brand and outside creative
thinkers. Athlete collaboration focuses on partnering with athletes so that the two can shape the future of sports
together. Partner collaboration on the other hand focuses on sharing resources and expertise with the best in
other fields. In order to accelerate its ‗Create the New Plan‘ Adidas introduced a few new initiatives. The first
major initiative taken in this regard was to update the portfolio and focus only on the core areas of sports shoes
and apparel. Another important strategic initiative was focused upon North America and making it a strategic
priority since this is the largest market for Adidas that represents around 40% of total share in the sporting
goods industry. However, another important dimension of this plan is to align the efforts of the entire business
and therefore One Adidas. While Adidas is continuously working to achieve operational excellence, it is also
focusing on bringing higher alignment throughout the entire organization. In this regard it has focused on three
important pillar that include brand leadership, marketing effectiveness and operational efficiency. ‗Creating the
New‘ plan cannot catch pace without investing in digital. Its digital transformation plan is also one important
part of trainability has become a key focus for all the big brands of the world including Adidas. The brand is
smartly investing in this area and has formed some important partnerships that will enable it to achieve higher
efficiency while having lower environmental impact. It formed a strategic partnership with Parley for The
Oceans. It is now producing shoes using the Parley ocean plastic. In 2017, it continued to reduce its use of
virgin plastic and made more than a million pair of shoes using Parley Oceans plastic. Moreover, 99% of the
cotton that the brand sourced from around the world was better Cotton. It has integrated sustainability in most
aspects of its business from supply chain to product creation and store concept development. The brand has also
decided to keep its offices plastic free and for that it implemented a plan that will avoid the use of at least 40
tons of single use plastic every year. However, that is not all because the brand is focusing on more eco
innovative technologies and processes that reduce its dependence on harmful products and minimise its
environmental impact. Not just Adidas but Reebok is also focusing on production using sustainable raw
materials. It has announced Cotton & Corn sustainable products initiative. This initiative intends to bring plant
based products to the market by 2018. These shoes will have an upper part made up of organic cotton and a base
made from industrial grown corn. For this initiative Reebok has partnered with DuPont Tate & Lyle Bio
Products, a leading manufacturer of high-performance bio-based solutions. In this way Adidas & Reebok have
continued to raise their investment in sustainable products and processes.

Investment in Digital:
Digital technology is changing many things in the business world and there is a strong reason that every brand
must have and follow a digital strategy. Consumers want personalised and better experiences from the
businesses. However, digital is also helping brands manage their supply chains, distribution networks and
inside the store experiences better. Adidas has also invested in digital technology to drive its productivity high.
In 2017, Adidas founded the digital leadership team whose responsibility was to start digital initiatives across
the entire company and support the various functions with decision making in this area. This team has set its
digital priorities and also set a clear digital roadmap for the future. Adidas is crafting a new digital experience
for its customers which starts from Adidas and Reebok websites. the brand has set a target of 4 Billion revenues
in terms of e-commerce revenue for itself. In 2017, it also introduced new features and technologies on its e-
commerce channels such that the customers can have a great online shopping experience.
2017 also saw the launch of Adidas app. Its e-commerce channels are also the fastest growing of its all sales
channels which achieved 57% growth in 2017. Digital experiences shape the perception of consumers towards
a brand and as such digital is now an essential part of brand‘s business strategy. However, digital extends deeper
in Adidas‘ system than shopping and marketing. The brand is forming fresh partnerships to extend the impact of
digital in its entire system. It has adopted the digital light synthesis which eliminates the need for traditional
prototyping or holding in the making of athletic footwear. Apart from that Adidas and Siemens announced a
collaboration that is aimed at minimising the time it takes to bring a product to the market. The two are going to
undertake research and development programs together which will enable the Adidas speed factory to grow
capabilities that will aid fast, transparent and individualised production. Siemens is a leader in digital factory
automation and simulation solutions, and the expertise it brings will offer greater flexibility and higher
manufacturing efficiency to Adidas.

Both Adidas and Reebok are trying to achieve more from their marketing efforts. Adidas focuses on creating
inspirational and innovative marketing concepts driving consumer advocacy as well as brand equity. Adidas
uses its marketing activities to build trust among its customers. Apart from that, it uses its marketing efforts to
maintain the iconic status of its key franchises, making it more reasonable for buyers to buy from these brands.
A large part of its marketing investment is spent on partnership assets. However, Adidas plans to decrease this
investment from around half of its total marketing investment to only 45%. In this regard it has partnered with
high profile events, teams and individuals. through key events like FIFA, UEFA, French open and Boston
Marathon it has continued to build its products to the biggest stages throughout the world. Similarly, it has been
using high profile teams and individual football stars like Leonel Messi and Paul Pogba for the marketing and
promotions of its brands. Apart from these the brand has also struck a large number of partnerships like that
with Kanye West and Pharrell Williams as well as several top designers and design studios.
Similarly, Reebok has focused on creating an emotional connection with its customers. It has created a ‗Be
More Human‘ platform especially for consumer connection. To give its marketing strategy a more authentic
feel, the brand has created a series of partnerships. It is building partnerships with fitness instructors and
currently more than 100,000 fitness instructors globally are a part of its network. Its digital channels are the
main channels for communication and marketing initiatives as well as from a commercial perspective. On its
website, its focus is on improving usability, speed and consumer experience. 2018 has brought further
enhancements to its digital ecosystem.
Effective management of the supply chain:
A large and complex global network cannot operated without an efficient supply chain. The effectiveness of the
entire brand depends upon the effectiveness of its production system. Adidas has managed its supply chain
excellently. Its global operations channel takes care of the supplier relationships and works in tandem with
strategic supply chain partners for improving the process of manufacturing. The Global operations function is
delivering against there strategic focuses that are :
To make Adidas the first true fast sports company which involves speeding things up.
Creation of a seamless consumer experience that has the customer at the centre.
Transforming the manufacturing process.
While the number of total Adidas suppliers is around 800, the Global Operations function worked with 296 of
them and 109 of them are strategic supply partners that have worked with the brand for more than 10 years. A
very large part of its suppliers are located in Asia which is to minimise the costs of manufacturing since the raw
material and labour are cheaper there. 97% of Adidas‘s footwear production took place in Asia in 2017. China
is its largest supplier of apparel followed by Cambodia and Vietnam. The Global Operations function plays the
central role in managing the supply chain. The brand is especially focusing on speed in its supply chain and
therefore created Speed-factories. These speed factories combine technology with art to better cater to customer
demand. The first of these speed factories was opened in Germany.
In this way, Adidas has used a multi-pronged strategy for getting faster growth. Apart from focusing on
increased technological efficiency through investment in digital technology, the brand has also focused on
operational efficiency. Increased focus on supply chain has led to smarter management of the manufacturing
processes. Marketing is also a critical focus which is being reshaped though the use of digital technology and by
designing new and improved consumer experiences. To start with, it focused on six key megacities and which
has helped it find publicity as well as better sales. Last year‘s financial performance is an indication that Adidas
might be very well poised to grow faster at a global scale.

3.6 CSR ACTIVITIES

Social responsibility is the business practices an organization takes beyond what is legally required to protect or
enhance the initiatives that benefit society. Corporate Social Responsibility involves the organization‘s
commitment to ethical behaviour and to the improvement of the quality of life to their workforce, local
community, and the whole society. Organizations have been motivated to invest more into good CSR practices
because consumers are known to be generally more supportive of companies with good CSR practices. More
and more companies are therefore paying more attention to articulation of their CSR policies and accordingly
changing company structure and practices to suit such policies. Adidas is a German sports apparel manufacturer
and parent company of the Adidas Group, which consists of the Reebok sportswear company, Taylor Made-
Adidas golf company (including Ashworth), and Rockport. Besides sports footwear, the company also produces
other products such as bags, shirts, watches, eyewear, and other sports- and clothing-related goods. The
company is the largest sportswear manufacturer in Europe and the second-biggest sportswear manufacturer in
the world, with American rival Nike being the…
Firstly is government affairs. There are standards of conduct to which Adidas Group must hold itself. The
guiding principle for the Adidas Group is that remain neutral or independent in the position towards political
parties and candidates. Secondly, Corporate Communication is responsible for speaking to the outside world on
behalf of the Adidas Group and managing public reputation of the group. Lastly, as a Group that operates
worldwide, Adidas have a responsibility to look after the environment, both for today and for future generations.
Managing our environmental impacts at our own sites and along the supply chain, where our products are
designed, created, manufactured, transported and sold, is a key priority

3.7 COLLABORATIONS
It's been an absolutely insane year for the Three Stripes. Recording their biggest year yet due to their continued
expansion across Asia, not only have they smashed it on the Ultra Boost front, their Yeezy releases continue to
draw crowds like never before, and the hype train doesn't look like it's stopping anytime soon.
With all that said, we've rounded up the ten hottest Adidas collaborations of 2019! A task that was a lot harder
than we had initially expected, we've hand selected just one shoe from each collaboration. So in order of release
date, let's get to it!

BAPE x Adidas Ultra Boost 4.0 "Green Camo"

2019 started strong with the BAPE x Adidas Ultra Boost 4.0 "Green Camo". Celebrating the Super Bowl on
February 2nd, Nigo's imprint injected its signature use of camouflage into the UB, resulting in an ultra exclusive
collaboration that singlehandedly revived hype for the running silhouette. Topped off with a black Boost
midsole and you've got a winner.
Adidas Y-3 Runner 4D II "White Bone"
Next stop, we have the Adidas Y-3 Runner 4D II "White" which made its way to our collections on May 1st.
Serving as Yohji Yamamoto's second Future craft design, it was spotted on the runways of PFW at the end of
2018, and is the first sneaker ever to feature a different coloured 4D midsole, replacing the usual "Ash Green"
with "Cream White" that looks as clean as it gets.

Invincible x Adidas Yung-1 "Yung Stud"

When the Invincible x Adidas Yung-1 "Yung Stud" released on May 4th, we knew straight away that it was a
must cop. The problem was that it was exclusive to Asia, so if you wanted a pair you'd need plenty of
connections and pretty deep pockets. Made in collaboration with the Taiwanese boutique, it's the first Yung-1
collab to feature an elasticated pull tab around the back.

Packer x Adidas Ultra Boost 1.0 "OG"

There really is nothing quite like the Packer x Adidas Ultra Boost 1.0 "OG". An amalgamation of the original
three UB colourways, including the "OG", the "Solar Yellow", and the "Solar Red", it launched on May 10th in
extremely limited quantities - just 500 pairs in fact. Unlike anything we've seen before, resale is pretty high at
the moment, and it doesn't look like it'll be going down anytime soon.

Raf Simons x Adidas Ozweego "Black Chrome"

Speaking of sneakers that we've never seen before, the Raf Simons x Adidas Ozweego "Black Chrome"
completely changed the chunky sneaker game when they dropped on May 23rd. Serving as the Belgian fashion
designer's latest and greatest collab with the Three Stripes, it's also one of his best too, dropping in four unique
colourways and turning heads like it's nobody's business

Yeezy Boost 350 V2 "Black"

You can't have a list of the hottest Adidas collabs of the year without mentioning the Yeezy Boost 350 V2
"Black". A shoe that took the world completely by storm on June 7th, everyone and their dog wanted a pair, and
we really don't blame them. As stealthy as it gets, Kanye's crep will work with any fit you throw at it. To add to
this, that mesh stripe really goes along way in flexing your sock game. Just what is there not to love?!

Nice Kicks x Adidas Ultra Boost "Woodstock"

The spiritual successor to 2016's NMD collab, the Nice Kicks x Adidas Ultra Boost "Woodstock" is one hell of
a sneaker. Released on August 17th to celebrate fifty years of the iconic music festival that was held in Bethel,
New York, the rainbow-coloured UB completely stole the show. That Boost and gum
Human Made x Adidas NMD Hu "White"
September 25th saw the release of the first ever Human Made x Adidas collab in the form of the Human Made x
Adidas NMD Hu "White". Part of the highly coveted "Love Pack" which also include two other silhouettes,
Pharrell and Nigo lent their simple yet striking aesthetic for this drop, placing their signature heart logo smack
bang in the middle of the v

Prada x Adidas Superstar "White"

This is a controversial one. On December 4th, we saw the launch of the hotly anticipated Prada x Adidas
Superstar "White", and to our shock and horror it was priced at an eye-watering £2,345. Accompanied with a
larger version of the Italian fashion house's iconic Bowling Bag, it's one of the first collaborations ever to blend
sneakers with high fashion, and we can appreciate this

Alexander Wang x Adidas Puff Trainer "Matte Silver"

And last but not least, we have the Alexander Wang x Adidas Puff Trainer "Matte Silver". One of the highlights
of the power duo's sixth collection, which also so happens to be their last one ever, this sneaker really marks the
end of an era. Inspired by puffer jackets, the sock-like structure and elasticated lacing system result in a shoe
that is sure to turn heads for years to come.

3.8 SWOT ANALYSIS

STRENGTHS

1. Legacy & heritage:

With many years of legacy and inheritance, Adidas has made a trip far to set up itself as an energetic brand. The
brand was begun in 1949 and has a voyage far from that point forward.
2. Diversified portfolio:
Company has numerous item portfolios with a changed scope of footwear and frill under brand name Adidas
(premium fragment) and Reebok
3. Strong financial position:
With its 2400 store comprehensively bookkeeping $4.3billions, the organization is in a solid budgetary position.
4. Distribution network:
By offering it from online stores to organization claimed stores to grocery store stores, Adidas has a compelling
dispersion framework for its items accessible through various channels.
5. Branding by creating touch points with the community:
Celebrity supports and supporting significant game associations, for example, FIFA, UEFA, NBA, and
Olympics have expanded the attention to Adidas in the market and thus it has expanded the exceptionally
focused on client base too.
6. Collaborations & memberships:
Strong relationship inside the maintainability territory with associations, for example, the International Labour
Organization, International Finance Corporation has given the organization an edge over contenders so they can
have an economical business.
WEAKNESS

1. Premium price range:

High value extends because of imaginative innovation and Production techniques have made the brand
reasonable to restricted clients just, particularly in creating nations.
2. Outsourced manufacturing:
Adidas has 93% of generation re-appropriated to outsider makers (generally to Asia) to benefit from low work
cost and simple accessibility of assets. They are risking over-reliance on re-appropriating particularly in Asian
markets. Likewise, the general nature of items saw by the customers of created economies is a significant worry
the extent that the brand is concerned.
3. Limited product line:
Adidas alongside the as of late procured Reebok brands has just 2 brands under their gathering in spite of the
fact that they have profound groupings inside these brands. Therefore, there is more extension for product
offering development.

OPPORTUNITIES

1. Changing Lifestyle:
With the immersion of created economies, changing taste and inclinations, instruction and changing the way of
life of creating economies, there is a lofty ascent in the interest for premium merchandise and administrations.
2. Market development:
Entering into new markets will be the best way to prevail later on in light of the fact that created economies are
now having a high challenge.
3. Expansion in the product line:
Expanding its product offering will open another arrangement of chances while simultaneously it can separate
itself from the contenders by following this system.
4. Increasing demand for premium products:
If we just consider the Indian market then there is a development pace of 33% sought after for premium items.
This discloses to us the future business opportunity and extending the business sector size of creating
economies.
5. Backward integration:
This will be a savvy methodology whenever pursued by Adidas as it will help Adidas to verify their patent
rights and additionally incorporate their R&D with the operational group so as to work in an open framework.
THREATS

1. Competition:
Although Adidas is a worldwide brand it is confronting the savage challenges from different brands like Nike
which is the No.1 brand and Adidas being in the second Position in this top-notch section. Other than this, there
is standard rivalry from neighbourhood players, substitutes and market penetrators.
2. Supplier Dominancy:
Due to most of its generation being redistributed; Suppliers have more haggling force than the organization.
3.Government Regulations:
With its 35% of items made in China and 93% of creation occurring in Asia, Import guidelines, obligation, and
taxes assume a basic job in the valuing and accomplishment of the organization.
CHAPTER 4

DISCUSSION
4.1 LITERATURE REVIEW

ADVERTISEMENT
Advertising is considered as a non personal form of communication used in marketing to promote goods and
service in the target market.
4.1.1MEANING

 It is a mass communication reaching a large group of consumers.

 It is a non personal communication
 It is a commercial communication
 The communication is speedy
 Advertising is identified communication

4.1.2DEFINITION

According to American association defines ― advertising is any paid form of non personal presentation and
promotion of idea , goods and services by an identified sponsor‖.
According to john s wright define ― advertising is controlled, identifiable information and persuasion by means
of mass communication media‖.
According to William J Stanton “advertising consists of all the activities involves in presenting to a group, a non personal ,
oral or visual, openly sponsored message disseminated through one or more media and is paid for by an identified
sponsor”.

4.1.3 TYPES OF ADVERTISING

1. Product advertising

It is concerned with conveying information about and selling a product or service. Product advertising is of
three types,

 Informative advertising

This form of advertising is used for the promotion of a new product to develop an initial demand.

 Persuasive advertising

Persuasive advertising is followed to develop demand for a particular product or brand.

 Reminder advertising

The goal of this type of advertising is to reinforce previous promotional activity by keeping the brand name in
the target market.

2. Advertising based on areas of operation

Advertising can be classified on the basis of its area of operation. Type of advertising on the basis of areas are,

 Local advertising
This type advertising is adopted by companies which restrict their marketing efforts to a limited area. Example,
advertising covering particular state region.

 National advertising

Some companies select the entire nation as the target market for their products. Example, car company,

 Global advertising

This types of advertising is required when the marketing effort of a company crosses the geographical boundary
of a nation. Example, multinational company.

3. Advertising based on target markets

On the basis of the target markets or the type of people who would receive the message of advertisement,
advertising can be classified in to four years,

 Consumer product advertising

The target of this advertising is to impress the ultimate consumers. Example, advertisement of lux soap, close-
up toothpaste etc.

 Industrial product advertising

This is also known as business-to-business advertising. This is done by the manufacturer or distributors of
industrial products. Example, hospital, college..

 Trade advertising

This is done by the manufacturer to persuade wholesalers and retailers to sell his goods.

 Professional advertising

This advertising aim at influencing the professional in a particular trade or branch. Example, doctors- medicine

 Financial advertising

Banks, financial institutions, and corporate firms use advertising to collect funds from markets. Example, selling
shares, bank account, loan..

4. Advertising based on the media

On the basis of media used, advertising can be classified in to the following ways,

 Audio advertising

It is done through radio, public address system and vehicle announcements.

 Visual advertising
It is done through store display, flux board, sign board, leaflets, cloth banner, brochures, electronic hoarding,
simple hoarding, running hoarding etc.

 Audio-visual

It is done through cinema slides, movies, viedo clips, tv advertisement etc.

 Print advertising/written advertising

It includes advertisement through newspaper, magazine, brochure, pamphlets, handbills, posters etc.

 Internet advertising

The world wide Web is used extensively to promote products and services of all types.
Some other types of advertising
Some other types of advertising are as follows,

 Outdoor advertising

It covers advertisement through billboards, stalls, and several events and trade shows organised by the company.

 Broadcast advertising

It includes advertisement over television, radio and the internet.

 Covert advertising

It is a unique kind of advertising in which a product or a particular brand is presented in a delicate manner in
movies, television shows and sports events.

 Surrogate advertising

It occurs in cases where advertisement of certain products are not permitted by the law.

 Celebrity advertising

Most companies use the popularity and fame of film stars , sports stars and other public figure in advertising

4.1.4 IMPORTANCE OF ADVERTISING

1. Important to customers

Advertising plays a very important role in the life of customers. It is important for the customers in the
following ways,

 Offers valuable information

Customers are able buy a product if they are made aware of the products available in the market.

 Promotes choice
People follow different life style and have different values and needs. A product that is right for one may not be
right for another.

 Convenience

Advertising makes shopping easy by reducing the time and effort involved in shopping.

 Education of consumers

Advertising provides education and knowledge to consumer about new products and their diverse users.

2. Essential elements of marketing

Advertising is a crucial function of marketing.

 Product launching

If a company wants to introduce a new product in the market. It crate awareness among the customers about the
new product.

 Demand creation

Advertising persuade customers to buy a product by informing them about its qualities and benefits .

 Price information

A company may produce a very high quality product with additional feature as compared to competitors .

 Place information

Place refresh to physical distribution and the stores where the goods are available in the market.

 Face competition

Advertising can plays a significant role to put forwards the claim of the company, and to resist the claim of
competitors

 Advertising and packaging

The main purpose of packaging is protection of the product during transit, and preservation of quality and
quantity.

 Advertising and positioning

Product positioning aims at creating and maintaining a distinct image of the brands in the minds of the
customers.

3. Significant role in the society

Advertising plays a crucial role in the modern society.

 Employment generation
Advertising provides direct employment to s large number of people engaged in designing , writing and
broadcasting advertisement.

 Higher standard of living

Advertising improves the standard of living of the people by promoting variety and quality in consumption.

 Sustains the media

Advertising provides an important source of revenue to print and electronic media.

 Incentive to work

Advertising is a great motivating force. People are induced to work hard and earn more to buy new products
brought to their knowledge through advertising.

 Art and culture

Advertising promotes the creative skills of people requires in designing and developing advertisement.

 Entertainment

Advertising also provides entertainment to the public.

4.1.5 ADVANTAGES OF ADVERTISING

This is beneficial to manufacturers, traders, consumers and society as a whole. Advertising offers the following
advantages.

(1) Introduces a New Product in the Market:

Advertising plays significant role in the introduction of a new product in the market. It stimulates the people to purchase
the product.

(2) Expansion of the Market:

It enables the manufacturer to expand his market. It helps in exploring new markets for the product and retaining the
existing markets. It plays a sheet anchor role in widening the marketing for the manufacturer‘s products even by
conveying the customers living at the far flung and remote areas.

(3) Increased Sales:

Advertisement facilitates mass production to goods and increases the volume of sales. In other words, sales can be
increased with additional expenditure on advertising with every increase in sale, selling expenses will decrease.

(4) Fights Competition:

Advertising is greatly helpful in meeting the forces of competition prevalent in the market. Continuous advertising is very
essential in order to save the product from the clutches of the competitors.

(5) Enhances Good-Will:

Advertising is instrumental in increasing goodwill of the concern. It introduces the manufacturer and his product to the
people. Repeated advertising and better quality of products brings more reputation for the manufacturer and enhances
goodwill for the concern.
(6) Educates The Consumers:
Advertising is educational and dynamic in nature. It familiarises the customers with the new products and their diverse
uses and also educates them about the new uses of existing products.

(7) Elimination of Middlemen:

It aims at establishing a direct link between the manufacturer and the consumer, thereby eliminating the marketing
intermediaries. This increases the profits of the manufacturer and the consumer gets the products at lower prices.

(8) Better Quality Products

Different goods are advertised under different brand names. A branded product assures a standard quality to the
consumers. The manufacturer provides quality goods to the consumers and tries to win their confidence in his product.

(9) Supports The Salesmanship:

Advertising greatly facilitates the work of a salesman. The customers are already familiar with the product which the
salesman sells. The selling efforts of a salesman are greatly supplemented by advertising. It has been rightly pointed out
that “selling and advertising are cup and saucer, hook and eye, or key and lock wards.”

(10) More Employment Opportunities:

Advertising provides and creates more employment opportunities for many talented people like painters,
photographers, singers, cartoonists, musicians, models and people working in different advertising agencies.

(11) Reduction in the Prices of Newspapers and Magazines Etc.

Advertising is immensely helpful in reducing the cost of the newspapers and magazines etc. The cost of
bringing out a newspaper is largely met by the advertisements published therein.

(12) Higher Standard of Living:

The experience of the advanced nations shows that advertising is greatly responsible for raising the living standards of
the people. In the words of Winston Churchil “advertising nourishes the consuming power of men and creates wants for
better standard of living.” By bringing to the knowledge of the consumers different variety and better quality products, it
has helped a lot in increasing the standard of living in a developing economy like .
4.2 OBJECTIVES ASSESSMENT OF THE COMPANY

 The company was established in Germany 1949by Adolf dassler.

 Adidas, in full Adidas AG, German manufacturer of athletic shoes and apparel and
sporting goods.
 In the early 21st century it was the largest sportswear manufacturer in Europe and
the second largest (after Nike) in the world.
 Adidas products are traditionally marked with a three-stripe trademark, which
remains an element in the company’s newer “trefoil” and “mountain” logos.
Headquarters are in Herozgenaurach, Germany.
 Adidas is a multinational company, today Adidas is a global public company and is one of the largest
sports brand in the world
 Employing over 46000people worldwide, the Adidas group consists 170 subsidiaries including Reebok,
taylormade,adidas golf, Rockport and CCM- Hockey.
 It was started as a production house of sports garments but later it became a leading producers of sports
garments and shoes as well as casual footwear and clothing.
 The name Adidas (written ―Adidas‖ by the company) is an abbreviations of the name of founder Adolf
(―adi‖) Dassler
 Adidas is the second largest sports manufacturer. It made the presence around the world by opening
company owned stores and by franchise model.
 Adidas is one of the leading sportswear and sports equipment company in the world.
 Adidas is also provide different products related famous sports specific to the country the brand is
located
 As a part of appeal and shoes , Adidas has also added various accessories related to sports and fitness to
its product portfolio
 4.3 OBJECTIVES ASSESSMENT OF THE TOPIC

Adidas‖ is a German multinational corporation that designs and manufactures sports shoes, clothing and
accessories. The company is based in Herozgenaurach, Bavaria, Germany. It is the holding company for the
Adidas Group, which consists of the Reebok sportswear company, TaylorMade-Adidas golf company
(including Ashworth), Rockport, and 9.1% of FC Bayern Munich. Besides sports footwear, Adidas also
produces other products such as bags, shirts, watches, eyewear and other sports and clothing-related goods.
Adidas is the largest sportswear manufacturer in Europe and the second biggest in the world, after Nike.

Adidas was founded in 1949 by Adolf Dassler, following a family feud at the Gebrüder Dassler
Schuhfabrikcompany between him and his older brother Rudolf. Rudolf had earlier established Puma, which
quickly became the business rival of Adidas.

― Adidas‖ American marketing team led by Bob Nagel, director of marketing and sales, doesn‘t want to
squander the rare opportunity.

In the U.S. last year, Adidas overtook fading Fila USA for No. 3 in U.S. athletic footwear and apparel. Some
industry experts believe Adidas can hurdle struggling Reebok International for second before the close of 1999,
if not sooner.

Globally, Adidas‘ sales were $3.72 billion in 1997, up 23% over 1996.

In 1997, Adidas spent less than $20 million in the U.S. on advertising. In 1998, it will spend about $25 million.

―It‘s not like Adidas is a new brand that has burst out and needs to create a new identity,‖ says Courtney
Boucher, managing director of Leagues Delaney, San Francisco, Adidas‘ agency. ―Adidas‘ identity was, is and
has been for 70 years about a love for sport and a mission to create products that help athletes perform better.‖

Here are many different methods of promotion. Above-the-line promotion refers to traditional methods of
advertising, such as, print adverts in magazines and newspapers, billboards or online and TV advertisements.
This form of promotion is expensive. As mass audiences become harder to reach through advertising, for
example, an increasing number of people record TV and fast-forward the adverts, innovative methods of below-
the-line activity is becoming increasingly important to engage the audience.

Above-the-line activity for Adidas‘ campaign included TV adverts that showcased the best UK talent across
sport, street and style. The adverts contained carefully planned product placement. Amongst those featured were
David Beckham, Wretch 32 and Derrick Rose. In addition to a significant outdoor media spend, Adidas featured
artist impressions of athletes on 17 London Metro front pages.

TV adverts featuring athletes such as Jessica Ennis and Tom Daley were used to rally support for Team GB. In
these adverts athletes shared their intimate goals, fears and thoughts, something which was dramatically
different to other sponsors of London 2012.

In contrast, below-the-line promotion aims to reach more targeted groups of consumers. For example, through
sponsorship deals, direct marketing, public relations and social media. Below-the-line promotion targeted at the
youth audience was a key method for Adidas to achieve its marketing objectives. It used a wide range of
promotional activities to create deeper engagement with its audience, mixing traditional media with an
innovative use of social and digital channels. The scale of the activation of this campaign was an industry first.
Its TV adverts aimed to drive consumers to a website where they could demonstrate their talents for a chance to
meet their idols. Adidas had already rewarded 32 talented youngsters in London with the chance to meet
leaders in their chosen fields, such as the sporting and musical industry, giving undiscovered talent the chance to
‗Take the Stage‘.

Social media played an integral part in Adidas‘ campaign. Videos on YouTube created hundreds of millions of
views, including a video of Team GB athletes singing along to Queen‘s ‗Don‘t stop me now‘. In addition, a
large photo booth was set up at West-field shopping centre in Stafford. Members of the public then entered the
booth to show support for Team GB. Videos of peoples‘ reactions to David Beckham making a surp
 Chapter 5

CONCLUSION
5.1 CONCLUSION

This study is conducted to determine the effectiveness of advertisement in Adidas company. Only
secondary data is used in the study because primary data not used because the data collected is distrabed
of covid 19 pandemic situation. It was conducted a period of days. Adidas is a multinational companies
established in 1949 Adolf dassler. Adidas is the second largest sportswear manufacturing company after
the Nike. The main objective of the study is to understand the effectiveness of advertisement in the
company . advertising is help to promote goods and service in the larger market . It is the mass
communication of the large group the are uses media favoured by the target audience. Media such as
television, radio , newspaper and etc. The company has to give relevant information about the product to
the potential customers. They will create awareness among the potential customers about a new product
and thereby builds a base for it in the target market. Entering a fashion sector of Adidas is favourite in
the worldwide. The Adidas was moving a biggest sportswear in the worldwide footwear market they will
launching quality products.
5.2 BIBLIOGRAPHY

 www.adidasgroup,com
 En.m.wikipedia.wiki.adidas
 https://www.statista.com/study/48864/textile-and-other-footwer-report
 https:/advertisementstratery.in
 www.footwerandtextileindustry.in
 https://www.starsis.com/study/adidas.com