Adidas to launch $1 shoe in India
Berlin - Adidas, the German sportswear and equipment maker, is to launch a shoe costing $1 a pair in India, boss Herbert Hainer said, despite the failure of a similar venture in Bangladesh.
He told the Sunday newspaper Die Welt am Sonntag that unlike in Bangladesh mass production would be possible to supply the growing Indian market.
"The shoe will be sold in villages through a distribution network," Hainer said, adding, "We want the product to be self-funding."
He gave no indication of when or where it would be launched.
Adidas had announced plans to sell a $1 shoe in Bangladesh last year, but Hainer said it had not worked as expected.
"We sold 5 000 pairs during a test phase but we made only losses," he said. "The shoes cost us $3 to make and we had to pay $3.50 in import duty."
Earlier this month Adidas said it was raising its full-year earnings targets after a stronger-than-expected third quarter and first nine months.
It was now pencilling in sales growth of close to 12% instead of 10% previously, while earnings per share were projected to rise by nearly 16%.
"Our brands and products are resonating with consumers around the world like never before," Hainer boasted on November 3.