The retailer sees an opportunity to tap China’s unrivalled supply chain efficiency. — China Daily
HONG KONG: Intersport International Corp, a leading sporting goods retailer based in Switzerland, is weighing a production pivot toward China.
The retailer sees an opportunity to tap China’s unrivalled supply chain efficiency at a time when rivals are shifting production to South-East Asia and other developing-country markets.
Intersport International’s new chief executive, Tom Foley, told the Financial Times recently that the group is considering sourcing a greater share of its private-label products from China. The category accounted for about 1.4bil in revenue last year.
The move comes as many sporting goods brands increasingly shift production to countries such as Bangladesh and Vietnam, where tariff rates are lower. Such moves, Foley said, “might put pressure on production capacities in markets that ordinarily would not have that”.
Intersport, with 5,500 stores across 42 countries, generated 14bil in revenue last year. It sells both its own private-label goods and products from brands such as Nike and Adidas. — China Daily/ANN
