Reebok 2011 Annual Report Download - page 98

adidas Group
2011 Annual Report
GROUP MANAGEMENT REPORT – OUR GROUP
94
2011
02.5 Global Operations
Rockport purchased approximately 9 million pairs of footwear in 2011,
which represents an increase of 6% versus the prior year. Products
were primarily sourced from factories in China (66%), Vietnam (23%),
India (8%) and Indonesia (2%). The largest factory accounted for 31%
of the total sourcing volume of the Rockport brand.
Volume of apparel production increases
In 2011, we sourced 83% of the total apparel volume for adidas, Reebok
and adidas Golf from Asia (2010: 82%). Europe remained the second-
largest apparel sourcing region, representing 11% of the volume
(2010: 12%). The Americas accounted for 6% of the volume (2010: 6%)
DIAGRAM 06 . China was the largest source country, representing 35%
of the produced volume, followed by Thailand with 14% and Indonesia
with 11%. In total, our suppliers produced approximately 321 million
units of apparel in 2011 (2010: 301 million units) DIAGRAM 07 . The
largest apparel factory produced approximately 8% of this apparel
volume in 2011 (2010: 9%). In addition, Reebok-CCM Hockey
sourced around 4 million units of apparel in 2011. The majority of
this volume was also produced in Asia, while small portions were
sourced from the Americas (particularly Canada) and Europe. The
Sports Licensed Division sourced approximately 31 million units
of apparel and 21 million units of headwear (2010: 23 million and
15 million, respectively). The majority of purchased apparel products
were sourced as unfinished goods from Latin America (58%), Asia
(28%) and the USA (13%), and were subsequently finished in our
own screen-printing facilities in the USA. The majority of headwear
sourced was finished products manufactured predominantly in Asia
(97%) and the USA (3%).
Approximately 66% of adidas and Reebok branded
hardware produced in China
In 2011, the bulk (i.e. 98%) of adidas and Reebok branded hardware
products, such as balls and bags, was also produced in Asia (2010:
98%). China remained our largest source country, accounting for 66%
of the sourced volume, followed by Vietnam with 21% and Pakistan
with 10%. European countries accounted for 2% DIAGRAM 08 . The total
hardware sourcing volume was approximately 51 million units (2010:
approximately 48 million units), with the largest factory accounting for
23% of production DIAGRAM 09 .
TaylorMade and Reebok-CCM Hockey sourced 98% and 81% of their
hardware volumes from Asia, respectively (2010: 98% and 72%). In
addition, both brands sourced a portion of hardware products in the
Americas. At TaylorMade, the majority of golf club components were
manufactured by suppliers in Asia (China, Vietnam and Taiwan) and
assembled in Asia, the USA and Europe.
02.5
06 Apparel production by region 1)
1) Figures include adidas, Reebok and adidas Golf.
08 Hardware production by region 1)
1) Figures include adidas, Reebok and adidas Golf.
2011 2011
1 83% Asia
2 11% Europe
3 6% Americas
1 98% Asia
2 2% Europe
1 1
2 2
3
07 Apparel production 1) (in million units)
2011 321
2010 301
2009 239
2008 284
1) Figures include adidas, Reebok and adidas Golf.
09 Hardware production 1) (in million units)
2011 51
2010 48
2009 34
2008 42
1) Figures include adidas, Reebok and adidas Golf.