Saturday, August 27, 2011

Hi Herbert, Is Adidas my Brand?






Dear Herbert,

Congratulations & Praises on robust quarterly result!

It pleases me as much as it does you as CEO. For some reasons, I always feel Adidas as my brand. I bought a pair of training shoes recently and no surprises that it was from the house of Adidas. Even rationally, it offered me better value proposition than other competing brands. Your apparels, shoes & accessories connect to me in a way that it becomes difficult to answer the dichotomy - Whether I fit into its style or it fits into mine?
Let me tell you that you have done a notable job since you assumed this position in 2001.
And when such association sustains for a decade, something becomes special about it. We get into selective attention tendency and look for the reason that makes us feel good about the brand to buttress the association. I had been in similar mode until yesterday. This is what I’ve transpired:
The chemicals used in your apparels are causing water toxication by nonylphenol (NP) -- a hormone-disrupting chemical.
I’d have snubbed it considering all-pervasive problem in the textile industry. But as I dig further, I find more reasons for not doing so. Your company ranks 2 in sportswear brand, leading in innovation and supply chain. You even boasted it in your Q2 announcement earlier this month. I’m afraid that the toxic cycle is inbuilt in the very supply chain excellence that you talk about. Worse, you run far behind in responding to the detox campaign by Greenpiece International. It has already inspired Nike and Puma to eliminate all toxic chemicals from supply chain by 2020.
I know that among these top 3 sportswear brands, you run little behind in profits, and only just from Puma – another German brand like yours. Does it compensate for your dilatoriness, so much so that you have not even disclosed the hazardous chemicals used in your supply chain.
Even with all my prejudices towards your company, now I think – Is Adidas my brand?

1 comment:

  1. A very honest and sincere letter to the CEO, written brilliantly. I was not aware that Adidas brands had toxic chemicals which would be harmful to us. This was both a learning and it is a concerning issue. Thanks a lot for highlighting it.

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