Coronavirus | adidas | Chinese | Adidas sales drop 85% in China due to coronavirus | ECONOMY
The sportswear manufacturer Adidas announced that its activities in China decreased 85% in January 2020 compared to the same month of 2019 due to the new coronavirus, which also affects Nike and Puma.
The COVID-19 outbreak caused the closure of a “significant” number of businesses, both their own and those of associates, as indicated in early February.
Adidas has also suffered in recent weeks from a “significant reduction in customer volume at other stores” that reopened after the Chinese New Year holidays, according to a statement.
The contrast is striking with the first three weeks of the year, in which Adidas reported “strong growth” in its activities in China.
On the other hand, the German group affirms that it does not have “significant effects” in other Asian markets, in particular in Japan and South Korea.
Its “top priority” at the moment is “ensuring the personal and financial security” of its employees and their families, which it does “in close collaboration with the Chinese authorities,” according to the statement.
Adidas has 500 own-account operated stores and a network of some 11,500 franchisees in China.
He German competitor Puma reported Wednesday that business operations in that country are currently “severely affected by security measures and government restrictions.”in a statement within the framework of its annual results.
Other markets, especially in Asia, suffer from the “absence of Chinese tourists”, adds the supplier, which is currently not in a position to predict “the exact impact” of the virus on its activities.
Adidas’ US rival Nike said earlier this month that it expected a “big shock” to activity in China, where it also had to close stores.