Adidas has always been very optimistic about the application of intelligent production in sporting goods. Recently, Adidas launched the first pair of running shoes made by robots, and it is estimated that one million pairs of shoes will be produced by robots each year in the future. Intelligent production has become one of the important directions in its future strategy.



On December 9, 2015, Adidas put into operation Speedfactory, a concept plant in Bavaria, southern Germany. In addition to a small number of technicians, the factory is entirely equipped with smart robots for the production of shoes.


Recently, Speedfactory's first product was officially unveiled. The running shoe named Futurecraft MFG became the first pair of sports shoes produced by robots. The first batch of products produced a total of 500 pairs, using ARAMIS motion capture technology, according to the individual skin or bone pressure and slack, to design a more appropriate shoes.


Adidas claims that these shoes “predict a new era and provide more precise and unique designs and high performance for footwear manufacturing”, which shows that it attaches great importance to artificial intelligence in the field of sports shoes production.


Adidas is expected to launch the second Speedfactory in Atlanta in the United States in 2017, and the output of the Atlanta plant will reach 50,000 pairs per month by the second half of next year. If all goes well, Adidas' robot factory will produce 1 million pairs of sports shoes each year in the future.


The American investigation company McKinsey has analyzed more than 2000 kinds of work activities in more than 800 jobs, and analyzed the possibility of replacement of the work by robots from factors such as the time, skills, and automation components required for the work. The report pointed out that 59% of jobs in the manufacturing industry can be automated, and 90% of jobs that can be automated can be performed by robots.


With the increasingly widespread application of intelligent concepts and technologies in all walks of life, what can robot factories bring to Adidas?


Lower labor costs


In the 1980s and 1990s, a large number of overseas companies shifted their production sites to China and Southeast Asian countries, relying on adequate local and cheap labor to produce at a lower cost, and sporting goods companies such as Nike and Adidas were among them. Today, twenty or thirty years later, the wage levels of workers in China and Southeast Asia have already multiplied several times and are still in a state of sustained growth.


In the face of rising labor costs, companies such as Adidas are already considering the possibility of transferring production sites again. So the robot factory became a good choice. In Adidas's German Speedfactory, a total of only about 160 technical staff, compared to hundreds of thousands of workers in the foundry's wages, which saved a huge sum of money.


Although robotic production equipment is expensive, maintenance and supporting facilities also require constant capital investment. But in the long run, for Adidas, which will produce about 300 million pairs of athletic shoes each year, the robot factory will provide lower production costs than traditional factories.


In addition, robots can produce 24 hours of production with high and stable efficiency, and they will not ask for a raise or change jobs. The human workers with greater uncertainty, unstable efficiency, and the risk of human mobility appear to be less “affordable,” and the management costs of workers are factors that need to be considered.


Closer distance


As there is no need to consider the impact of labor costs, in theory, Adidas can open its robot factory to any country or region. For Adidas, placing production on its largest market is undoubtedly the best option, which will help it significantly increase the speed of its products from design to production to market.


In addition to the fierce competition between sports brands in recent years, the market space has been further squeezed by fashion brands such as Zara, H&M, and Uniqlo. The biggest competitiveness of these brands is “fast”. Taking Zara as an example, it has reduced the design, production, delivery and other procedures to within 15 days through a unique communication and logistics distribution system.


Due to the rapidly changing trend, consumers obviously do not want to pay for the styles popular in the previous season.


Therefore, Adidas's Speedfactory in Atlanta and Atlanta, which will be opened next year, will help it to get closer to the major markets and meet consumers' rapidly changing product demands.


Adidas CEO Herbert Heiner said: "The flexibility of automated production is incomparable with the traditional production model. This will lead the trend and bring Adidas closer to consumers."


At present, more than 74% of Adidas’ sales come from new products launched within one year, and this proportion will continue to grow.


More personalized products


According to Goethe Mans, head of Adidas’ technological innovation, “Customized personalized merchandise will become mainstream in the future.”


For the younger generation of consumers, it is no longer appropriate to buy what the manufacturer offers. They do not want to bump into shoes with passersby on the street, but they also want to wear their own designs and styles.


The sports brand has long been eyeing the market for customized products. Nike's Nike ID business allows consumers to create their own color and pattern sports shoes on their official website. Although adidas also launched a similar custom business mi adidas to help consumers design personalized products, Nike still occupies a dominant position in this market.


However, Adidas' robot factory may change the situation. Different from traditional production, robots have stronger "learning ability". Only by adjusting the procedures, they can quickly adapt to the production of new types of shoes. The models, sizes and materials are not difficult for them. The flexibility of intelligent production is incomparable to traditional workers, and Adidas' Speedfactory will mainly focus on producing customized products in the future.


Although robot factories will bring many opportunities and possibilities for Adidas, intelligent production does not mean the demise of traditional production plants. As Adidas thinks, "Intelligent robots are only complementary to existing production methods, not to replace workers."


Reproduced Source: Billion Europe


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