Adidas to diversify product sourcing on increased labor costs

Sportswear giant Adidas Group AG said on Thursday that it would start sourcing more products from countries like Vietnam, Cambodia and Indonesia to offset the pressure from higher labor costs in China.

The company, however, clarified that the move would not have a significant effect on the current sourcing volumes from China.

Sabrina Cheung, senior director of corporate communications for Adidas Group in China, said that the decision is more an effort by the company to have multiple sources for products and to cater to future requirements.