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FUTURECRAFT.LOOP – 100% Recyclable Sneakers from Adidas

Case Code: MKTG429
Case Length: 9 Pages
Period: 2019
Pub Date: 2021
Teaching Note: Available
Price: Rs.300
Organization : Adidas AG
Industry : Textiles & Apparel
Countries : Germany
Themes: New Product Development, Product Launch, Sustainable Innovation
Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

The Development of Adidas Futurecraft.Loop

The designers of Adidas had been contemplating developing a completely recyclable product for a long time. Paul Gaudio, Global Creative Director, Adidas, said, “I can remember a time 20 to 25 years ago when we kicked around the idea, because the roadblock to recycling footwear is that it’s made of so many materials. There’s glue, chemicals – things you can’t easily separate.” Traditional sneakers were made from various materials – an average of 12–15 different materials. When recycling, it was a challenge to separate, sort, and reuse these multiple materials. According to Eric Liedtke, executive board member at Adidas, “You’d have to recycle each of them individually in 12 to 15 different ways, and figure out the decomposition to take apart the shoe and figure out how to get those materials onto the recycling area.” This in a way meant that sports shoes could only be downcycled. Though it was unclear when the designing of Loop began, reports suggested that the product planning had started in 2016 ..

Recycling Adidas Futurecraft.Loop

The first generation Loop launched in 2019 was part of a global beta program. In the beta phase, a global testing program was launched where 200 pairs of the Loop were given to journalists, athletes, musicians, artists, and select media partners in London, Paris, New York, LA, Shanghai, and Tokyo , plus selected Adidas employees, through an internal wear program for wear testing feedback. These people were asked to wear Loop as much as possible for a span of five weeks after which the shoes had to be returned for recycling and for the second generation Loop to be produced...

Market Launch

FUTURECRAFT.LOOP was to be launched for the public in general in the Spring 2020. Before launching the product in the market, Adidas had to figure out the price, collection policies, and recycling process once the shoes had been used by the customers. It had to plan a strategy to sell the same product to the customers repeatedly after recycling..

Exhibits

Exhibit I: Nike Grind
Exhibit II: ‘Sustainable Innovations at Adidas
Exhibit III: Circular Economy
Exhibit IV: Waste from Shoes

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