German sports apparel manufacturer Adidas is taking a bold step in bringing its shoes to the people of India, known for their high growth and sheer volume. Adidas CEO, Herbert Hainer, has recently announced that the company is slated to launch a shoe that costs one dollar a pair, or roughly 52 Indian rupees.
In an interview with German Sunday newspaper “Welt am Sonntag,” Hainer shared the upcoming venture, adding that mass production can potentially supply the growing Indian market. Hainer said:
The shoe will be sold in villages through a distribution network….We want the product to be self-funding.
Adidas has previously considered a similar initiative of selling a one-dollar shoe in Bangladesh last year, but Hainer reported losses in the initial test batch of 5,000 pairs, adding that the shoes cost three dollars to make and $3.50 had to be paid in import duty.
Despite the loss in Bangladesh, the company looks to brighter skies after raising its full-year earnings targets after a “stronger-than-expected third quarter and first nine months” and reporting sales growth of as much as nearly 12 percent. Hainer boldly states:
Our brands and products are resonating with consumers around the world like never before.