Source: The Financial Times
As global sportswear giants like Nike and Adidas continue to diversify their supply chains away from China, Switzerland-based Intersport International appears to be heading in the opposite direction.
In an exclusive interview with The Financial Times, Intersport’s new CEO Tom Foley revealed that the company is actively assessing the feasibility of increasing its manufacturing presence in China. This comes amid a wider industry exodus triggered by rising geopolitical tensions, U.S. tariffs, and a broader push toward regionalized production.
For Foley, the pivot isn’t a short-term tactic—it’s a considered strategic move. “The capacity, infrastructure, and manufacturing sophistication in China remain world-class,” he told the FT. “We’re looking at what makes sense not just politically, but operationally.”
Context: Why This Matters
Over the past five years, many Western sportswear brands have accelerated efforts to ‘China-proof’ their supply chains. Regional manufacturing in Southeast Asia, South America, and even nearshoring in Eastern Europe has become the new norm, largely to reduce overexposure to Chinese political risk and minimize tariff burdens.
Yet Intersport’s strategy challenges that consensus. Rather than purely react to macro pressures, Foley’s leadership is betting that China’s manufacturing excellence and scale still present a long-term advantage—especially for brands and retailers not as exposed to U.S. regulatory friction.
Strategic Interpretation
This contrarian stance may not just be about costs. With China’s domestic sportswear market continuing to grow, an increased local manufacturing presence could also serve to strengthen Intersport’s footprint in the region. It’s a double-edged positioning: optimizing logistics for global export while embedding deeper into the Chinese consumer landscape.
While the long-term viability of this approach remains to be seen, it signals a more nuanced phase in the global supply chain recalibration. Not every player is running from China. Some are carefully stepping back in—with a different set of priorities.
Key Questions Going Forward:
- Can Intersport avoid the geopolitical and tariff challenges its U.S.-exposed peers face?
- Will this bet on China’s infrastructure pay off in an era where localization is becoming king?
- Could this approach signal the emergence of “selective decoupling,” rather than a full-scale manufacturing exodus?
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