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Exclusive: Germany's Largest Sporting Goods Retailer Plans to Move Production to China

Guancha Syndicate 2025-10-22 14:23:22

According to the Financial Times, Intersport, one of the world's largest sports retail companies, is considering relocating its production to China. This report has drawn attention, particularly as discussions are ongoing regarding whether sports brands and other labor- and capital-intensive industries will shift production from China to other Asian countries with lower U.S. tariff rates. The report about Intersport's move reveals the more nuanced and complex situation of the Asian supply chain.

The background of this decision is closely related to the fluctuations in the industrial chain caused by the United States' tariff policy. Previously, influenced by former President Trump's tariff policy, sports manufacturing giants like Adidas and Nike moved their production lines to countries with lower tariff rates in an attempt to avoid cost pressures. However, Tom Foley, the new CEO of Intersport, keenly pointed out that this centralized production shift is bringing new pressure to a market that was originally balanced in terms of capacity—“some regions that previously did not have to bear the burden of production overload are now facing supply chain strain due to the influx of numerous companies.”

As a globally positioned retailer, Intersport's core procurement markets cover China, Bangladesh, Vietnam, and Cambodia. Regarding the specific path of production relocation, Frilli stated, "Currently, we do not have to move capacity out of Bangladesh, but China has become an important alternative for us, with sufficient room for adjustment."

Data image: Sports retail company Intersport's store Intersport company website.

According to the Financial Times, the recent "Southeast Asia Shift" has led to capacity saturation in some areas. For example, 27% of Adidas' products were produced in Vietnam last year, and 19% came from Indonesia. This concentrated layout has made production competition increasingly fierce for Intersport in the Southeast Asian market, making it a necessity to find new capacity bases.

Notably, Foley also mentioned that the power structure in the sporting goods industry is changing. He believes that many major brands have failed to achieve their anticipated expansion goals in direct sales, and the balance of power in the industry is shifting from manufacturers like Adidas and Nike towards end retailers like Intersport. "Brands are becoming noticeably more dependent on our channels."

Based on this judgment, Intersport has formulated a clear profit enhancement plan: within the next five years, it aims to increase the proportion of its private label product sales to the group's annual revenue from the current 10% to 20%. Freely emphasized, "To build a strong and sustainable business model, higher profit margins are the core support, and optimizing production and procurement layouts is a key step."

Public information shows that Intersport is headquartered in Switzerland. Although it is a multinational enterprise, it has a strong foundation in the European market and is the largest sports goods retailer in Germany. Currently, the company has established over 5,500 stores in 42 countries and regions, with a product matrix that includes its own brands as well as well-known third-party brands such as Adidas and Nike. According to its disclosure, global sales will reach 14 billion euros in 2024, but specific profit data has not yet been announced.

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Exclusive: Germany's Largest Sporting Goods Retailer Plans to Move Production to China

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