Counterfeit products

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Supplier dominance
Adidas obtains its raw materials and finished products from an extensive network of suppliers. This dependence on suppliers exposes the company to the risk of supplier dominance, which can increase costs, disrupt the supply chain, and result in lower quality products. Because supplier dominance increases competition between suppliers, prices may increase or other customers may be favored. It should also be noted that Adidas works with several manufacturers to make its products, which gives the manufacturers more bargaining power than the company. Adidas must ensure that it maintains strong relationships with its suppliers and periodically evaluates its performance to reduce this risk. Better yet, Adidas can produce its own raw materials.


Counterfeit goods can have a significant impact on the Adidas brand reputation and financial results. hong kong phone number data Because they are of low quality, they damage the brand’s reputation, reduce customer loyalty and harm sales. Adidas must take decisive action to stop the production and distribution of counterfeit goods. This includes strengthening supply chain controls, working with law enforcement to detect and prosecute counterfeiters, and raising public awareness of the dangers of buying counterfeit goods.

Economic setbacks
Consumer spending on luxury items such as sporting goods and footwear declines during economic downturns, which affects Adidas' sales and profitability. Adidas must diversify its product offerings and markets to reduce its dependence on one market. The company must also be flexible and responsive to economic changes, adjusting its pricing and marketing plans accordingly.

Not a recognized trademark
The Adidas brand is one of its most valuable assets. However, in some markets, the company’s trademark is not protected, exposing it to the risk of intellectual property theft. In 2019, it lost a suit over its tricolor logo, meaning it has no rights to it.