Exclusive interview with Adidas CEO Bjørn Gulden

Well, yeah, I go – I think I've been in China since 1993, every year. Okay, two years during COVID I wasn't, but I go to China, I would say, three times a year. I haven't been to the university before, very honorable to be invited here. But you taking the CEO position of Adidas – this is your third trip? Yeah, probably. I think I've been back again for 18 months and I think it's the third time in. So this time around, meeting with the policy makers, checking out the sports scene here, the youth scene here, talking with some upstream, downstream businesses.

Well, the China market is extremely important for us. You have a huge population, you have had an economy that has been growing fantastically over the last 30 years. More and more people are doing sports, your middle class is growing. So from a market point of view, it's extremely important, but also from a manufacturing and from an innovation perspective, it's important. And then I have to say that you have a lot of talented students and talented people coming out also in creation and innovation. So we're hiring a lot of Chinese. So China is one of those – what should I say – markets that we look most to, and maybe the most important market in the future.

Well, first of all, I think that when you see the world right now, it's not one system – there are – well, there's one system, but it includes many smaller systems. So I would say Europe, America, China are the three most important hubs, and you try to combine the strength of those hubs in the most efficient way. And if you're consumer-centric, you need to be very close to the consumer, and that means you need to develop and also try to make product as close to him or her as possible. And that's where China plays a very, very important role. You have a lot of innovation inside production – robotics, materials – and you have a high productivity in production. So there are many lessons learned from China that we are now moving to other markets. And for your consumer, he or she is moving very fast, so it's a place to test product. And again, because of your mono-branded retail – most stores here are Adidas stores; I think we have around 7,500 of them with partners – you can control the space, and that's why you need to change the product all the time to be fresh. So it's a different business model.

Well, I think it's going to be combined. I think it's going to be a design center for China but also for the rest of the world. It's going to be a production hub, also for innovation, especially in the Shanghai area. And then I do think that the role of sports in China is just going to increase and increase. So I think we're going to work a lot more with different sports and also have it as a sports center. So the importance of China in the next 5, 10, 15, 20 years is going to be very important for our industry and also for Adidas.

No, I think when you look at China the last 30 years, the development of this country since I started traveling here in the beginning of the '90s is just fantastic. And that there is a stagnation for a period of time is normal. I think you have to be proud of what you guys have developed. And when it comes to Western brands like us, of course there is more local competition, but competition is good. So we have never been in doubt that this is going to be an important market. I think what is new is that we need local management – we need Chinese people to run our business here, and we need to support it. So I think the strategy is a little bit different, but I don't think Adidas has ever doubted the importance of the market. At least I didn't.

Yeah, I mean, you have a huge country that has gone through an enormous development, so of course everything is not so easy to fix short-term. But I think the commitment from your top leaders, both centrally and locally, is there. We've had very good talks, and the issues that come up we can always discuss. And I have the feeling that there is a huge understanding from the Chinese side of what foreign companies like us need. It's a very good dialogue. Problems arise and you go through some phases where geopolitics is difficult – that's just the way the world is. But the commitment from companies like ours and also from your authorities, I feel, are very strong, and I think more open than ever, to be honest.

Well, the interesting part is that shoes that used to be performance shoes in running or tennis or soccer suddenly become fashion. I mean, the hottest shoe in the market right now is the Samba – it's a soccer shoe that I played with indoor in the 80s. Pretty much like this one, right? Well, this is the Superstar... the classic... antique? Not antique. This is back in the '90s, from the '80s days. You know, this is Superstar, which is an old basketball shoe. But you see that a lot of the classic performance shoes become fashion. And our archive – we're 75 years old, so we have a lot to play in the archive. And then when it comes to the performance side – running, basketball, soccer, whatever – there's a lot of innovation in materials, making the products lighter, improving the fit, improving the traction. So there are kind of both avenues. And one avenue that people don't talk about is comfort. Most people would like to wear running shoes or sports shoes also in their formal time because it's the most comfortable product. And fashion-wise, people dress much more casual. If you look at the people here compared to 15-20 years ago, it's more casual. And of course, sports brands like us with the marketing power we have are maybe the most branded as fashion brands in the world. And that's why both performance comfort – I would call it lifestyle – both on apparel and footwear is very, very important and growing. That's why we are in a good industry.

Well, materials are for AI very important when it comes to the product: making it lighter, making it more durable, and also improving the performance. Like in running, there has been a huge innovation cycle with carbon plates that actually create energy, and then materials that make shoes lighter. Our top shoe right now, the EVO, is 138 grams? Actually, it's 137 grams? It's setting all the records. Wow. AI is currently for me more a tool to help make the right decisions. We are using AI in design, we're using it in launches of product, we're using it to forecast how much of the product we should make. So AI is a tool. But we should never forget that product, in the end, is the most important thing. That's why we need people to design, develop, source, sell the product. And that's where social intelligence is as important as AI.

Well, I think two things. I think you've had quite some local brands in our industry that have done well over the last 5-6 years, and that's good. Competition is good, and you have the competence to make product, so why not? I think for us, the answer to that is to combine the global Adidas with the local Adidas. We are a global brand that works with global athletes, global teams, global celebrities. We have a global collection. But in addition to that, our local management has the freedom to do whatever they want to do. And I think this combining of the global with the local is the future. People will look for global brands that also adapt into local cultures. That's why we have 40-50 designers now sitting in Shanghai creating product for us, also for the local market. We use a lot of energy with local athletes, local designers, local celebrities. So, as always, it's the combination of different things, not only one thing. And again, your population and your market is big enough both for us and your local brands.

First of all, I think sport – maybe if you don't do too much, which some of us maybe did, that's why we have injuries – is good for your health. I think team sport is very good for your social intelligence, and sports is fun. So each Chinese citizen should do sport for themselves. And then I think on the national level, I really believe that sports is a bridge builder. If you look at the Olympics, by the way, where you were very successful both in the Olympics and Paralympics. I think having athletes across the world, even when there are political tensions, keeping sports going – we play against each other, we work with each other. And I think we should have more exchange programs. I would love more youth teams from China coming to Germany and the other way around, because I think sport is very, very important. So my advice to all Chinese young people: do a lot of sports. And of course, buy Adidas product when you do it.

I was in Paris a couple of times during the Olympics and also during the Paralympics, where you took more than 200 medals and you were actually the best nation – I think in the Olympics you were the second best. I met many of your athletes, and coming out of difficult times in COVID where training was difficult, competition was difficult. I felt the Paris Olympics was great, not only for China but for everybody. I really, really hope that we keep that positive momentum in sports, and I'm 100% sure that the Chinese athletes will continue also to be more and more successful, even in football down the road.

Start with the kids. You know, a good soccer player needs to practice 12,000 hours to be really good. So you have no chance? No, no. If you look statistically, a player that plays in Real Madrid or Arsenal or whatever, he or she has practiced since they were a kid – 12,000 hours until they reach that quality. So if you do the math, you should start early. There's no way to shortcut that. You need to start with the academies and the youth program, build that, and then you will see the quality will improve. You can't just start with players that have started later. There's no coach who can make a decent player good. There's no shortcut, no expedient measure.