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简体中文Adidas is going through another difficult period in the Chinese market. The German sportswear giant has launched an in-depth investigation following allegations of corruption involving some of its employees in China. The case reportedly came to light through an anonymous letter posted on the Chinese social media platform Xiaohongshu, in which several staff members were accused of misconduct.
The allegations notably concern a marketing budget manager who is accused of having received benefits from suppliers working with Adidas, as well as real estate assets. The amounts potentially involved are believed to be substantial, as the budget under the manager’s control could amount to several hundred million euros per year. Adidas has stated that it is taking these allegations seriously and is investigating the reported facts.
This case comes at a time when China remains a strategic market for the brand. After several difficult years, Adidas had just begun to regain momentum in the country. The group had been particularly hard hit by the boycott of several Western brands in 2021, amid the controversy surrounding Xinjiang, as well as by pandemic-related restrictions.
A Chinese market that has become much more challenging
Adidas’s position in China has changed dramatically. For many years, the Chinese market was a major growth driver for leading Western sportswear brands. Today, however, they face much stronger competition from local brands.
Chinese companies such as Anta, Li Ning, Xtep, and 361 Degrees have made considerable progress and gained market share. They are no longer seen as mere low-cost alternatives: they are developing their own identities, investing in design and innovation, and becoming increasingly attractive to Chinese consumers.
Adidas had already acknowledged in 2021 that it had underestimated this shift in the market. This was compounded by the consequences of China’s “zero-Covid” policy, which further weakened the group’s operations in the country.
The German brand is now seeking to win back Chinese consumers. In particular, it is relying more heavily on a network of local manufacturers, at a time when Western multinationals no longer enjoy the dominant position they once held.
The Rise of Chinese Brands
China’s sportswear market is now far more competitive. Local companies have learned to better understand market expectations and offer products tailored to the tastes and preferences of Chinese consumers.
According to industry experts cited in the article, major Chinese brands have made tremendous progress in recent years. Some are now developing products, innovations, and designs that can compete directly with those of leading international companies.
This shift is forcing Adidas to rethink its approach. In particular, the company is seeking to accelerate the development of products specifically designed for the Chinese market, both in terms of product design and manufacturing.
The goal is also to become more responsive. Faced with local competitors that are faster and more closely attuned to emerging trends, Adidas can no longer simply offer the same collections in China as it does in the rest of the world.
The brand must now analyze the behavior of its Chinese customers more closely, anticipate fashion trends, and adapt its product offering accordingly. This also involves strengthening its presence on social media and gaining a better understanding of new consumer habits.
Thus, beyond the internal investigation into the corruption allegations, Adidas faces a much broader challenge: regaining a strong position in an increasingly competitive Chinese market, where local brands have now become major players.