Adidas Opens Fraud Probe in China After Whistleblower Letter
Listen to the full version
(Bloomberg) — Adidas AG is investigating allegations of corruption in China after receiving an anonymous letter exposing potential compliance violations by some employees.
The German sportswear company is working with external legal counsel after receiving the letter on June 7, it said in an emailed statement.
It’s the latest blow for Adidas, which has had to deal with multiple crises in the last few years, including consumer boycotts in China and a significant hit to sales after severing ties with the rapper Ye. CEO Bjorn Gulden, who joined last year and visited China in September, is in the midst of working to restore Adidas’s fortunes.
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
- DIGEST HUB
Digest Hub
Back
- Adidas is investigating corruption allegations in China, working with external legal counsel after an anonymous letter exposed potential violations.
- The company's sales were heavily impacted by consumer boycotts in China and the termination of its partnership with rapper Ye.
- Recently, Adidas saw an 8% sales rise in Greater China, reporting increased profitability and growth due to localized product strategies and reduced marketing restrictions.
- Adidas AG
- Adidas AG is investigating corruption allegations in China after receiving an anonymous letter. They are working with external legal counsel. The company has faced various crises, including consumer boycotts in China and sales drops due to severing ties with rapper Ye. CEO Bjorn Gulden is working on restoring fortunes. China had boycotts in 2021 over Xinjiang cotton, but Adidas has since returned to growth in the region.
- Nike Inc.
- Nike Inc. was mentioned in the article in the context of 2021 consumer boycotts in China. Similar to Adidas, Nike denounced the use of cotton from Xinjiang, leading to a backlash from Chinese shoppers who boycotted Western brands. This allowed domestic competitors like Anta Sports Products Ltd. to capture market share.
- Anta Sports Products Ltd.
- Anta Sports Products Ltd. is a domestic rival to Adidas in China. The company gained market share during the consumer boycotts of Western brands in 2021, which were triggered after brands like Adidas denounced the use of Xinjiang cotton due to alleged human-rights violations against the Uyghur minority.
- 2021：
- Boycotts against Western brands, including Adidas, took place in China.
- Last year：
- Adidas began returning to growth in China after giving its Chinese staff more autonomy.
- By September 2023：
- CEO Bjorn Gulden joined Adidas and visited China.
- Earlier this month：
- The anonymous letter briefly appeared on the Chinese social media platform Xiaohongshu.
- April 2024：
- Adidas reported an 8% rise in sales in Greater China in the first quarter.
- June 7, 2024：
- Adidas received an anonymous letter exposing potential compliance violations by some employees.
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新