The German equipment and sportswear maker, Adidas, is launching a shoe in Bangladesh and India that will cost close to four dollars a pair. Adidas feels that mass production will be possible to supply the growing Indian market with these basketball training shoes.
The shoes will be sold in villages in Bangladesh and India through a distribution network. Adidas wants the product to be self-funding. So far, the date and place of availability has not been decided upon.
During a test phase in Bangladesh some months back, Adidas suffered losses when it sold five thousand pairs of shoes as the total cost including the import duties cost them close to $3.50. Adidas have just finished a stronger than expected third quarter. They are expecting a sales growth of close to 12% while earnings per share are projected to rise by nearly 16%.
This project by Adidas is to make shoes for millions of people in the world who cannot afford to buy shoes. The shoes are slated to be sold on a non-profit basis as Adidas is keen to improve their image and reputation for corporate social responsibility.
The original idea for this project came from the Nobel Prize winner from Bangladesh, Dr. Mohammad Yunus and he has convinced Adidas that Bangladesh and India needed social business which would create jobs in both the countries. The production is planned solely in Bangladesh first.