2e:null 2f:["$","title",null,{"children":"Atheletic Running Shoes | Virento Voshe | Observable"}] 34:T6e0,md `According to Adidas [website [1]](https://www.adidas-group.com/en/sustainability/products/materials/), to make these running shoes, one needs synthetic polymers synthesized from rubber such as polyester for the textile of the shoe, these also include cotton and nylon, the internal heel counter of the shoe is made of polystyrene and the rest is made of synthetic microfibers, such as the soles and the cushioning base of the shoe. These materials are made from raw materials such as:

**Note**: While I do not know if the raw materials themselves come from all these places but according to the information I've gathered, these places are known to export large quantities of these raw materials **[2][3][4]**. And also the fact that Adidas has outsourced most of the work in factories to different places around the globe regardless of where they are from as long as they can make money, it is reasonable to think that the flow of raw materials is free to move around to fulfill the market's demand. - **Cotton for textiles**: from places like China, US, India, Pakistan, **Vietnam**, Turkey, Australia, Hong Kong, Brazil, and Italy... etc - **Petroleum for synthetic polymers**: from places like Saudi Arabia, Russia, Iraq, US, Canada, United Arab Emirates, and Nigeria... etc - **Rubber**: from places like Thailand, **Indonesia**, Malaysia, India, China, Vietnam, Philippines, Côte d'Ivoire, Guatemala, and Brazil... etc
**In the Primary Sector**, the jobs are mostly farmers that grow and plant rubber and cotton.

**Geographical Models Involved:**
According to the **Core/Periphery Model**, the raw resources is indeed coming from LDCs/Periphery and Semi-Periphery countries, these countries include Vietnam and Indonesia. `35:T4c6,md `In 2017, there are over 2500 Adidas stores worldwide **[7]**, mostly in developed countries such as the US, most European countries and some East Asian countries such as South Korea and Japan. A noticeable pattern is that there is a lack of stores in Africa besides Morocco, Egypt, and South Africa. And obviously, there are virtually no Adidas stores in countries that are in conflict, example: Afghanistan, Yemen, Mali etc... Most of the middle-eastern countries don't have Adidas stores.

I guess a reasonable conclusion to make is, sports is usually reserved for people with time and money to spend leisurely (those people are in core countries, mostly) not necessary for people that are poor and barely have any energy to move. Adidas would target athletes back in the day, a time when sports gear was only worn by athletes, but in today's society, a society riddled with trends and fads, people wear sneakers just because they can afford it, not necessary to do marathons or triathlons, even less, run a mile on the treadmill. **So their target audience is everybody, ranging from the cool-kids-wannabe to an athlete-wannabe to real athletes (though atheletes probabably get their stuff custom made).**`36:T621,md `The **first step** in the commodity chain is attaining the **raw materials**. These are the farmers and then afterward it gets transported to the manufacturer to be manufactured **(second step)**; the manufacturer also doesn't have to get the raw materials from a specific place, in fact, on their website, Adidas explained sometimes there is redundancy in the commodity chain in the case of an emergency or in an effort to rapidly respond to the demand such as making uniquely adapted goods to a specific audience, manufacturers have some level of leeway when it comes to deciding what to make.

**Note:** manufacturer and supply are the same thing, the difference comes from contractors and sub-contractors, like multiple layers of "closeness" to the main company, contractors have more conditions to fulfill because they are the official manufacturer/supplier.

**Third step**, as you have seen in the above diagram, suppliers may be sub-contracted (kind of like an independent supplier), meaning some of them are local and they may have things other than Adidas goods, they merely have to fulfill some of the conditions to enter into a subcontract with the main company.

And lastly, **the fourth step** of this chain, the supplier supplies the goods directly from their warehouse(rarely) or it can go to a distributor, which then distributes all the goods to all the retail stores. **There's probably more in-betweens with agents and middle-man and commissions and all that but that's all the crucial steps in the commodity chain.**`37:T4b0,slide = { function slide() { const container = document.createElement("div"); container.className = "slide"; container.appendChild(md.apply(this, arguments)); return container; } function code(strings) { const container = document.createElement("div"); const pre = container.appendChild(document.createElement("pre")); const code = pre.appendChild(document.createElement("code")); let string = strings[0] + "", i = 0, n = arguments.length; while (++i < n) string += arguments[i] + "" + strings[i]; code.textContent = string.trim(); container.className = "slide slide--code"; return container; } slide.code = code; slide.js = function() { const container = code.apply(this, arguments); const content = container.firstChild.firstChild; content.className = "js hljs javascript"; hl.highlightBlock(content); return container; }; slide.img = function(strings) { const img = new Image; let string = strings[0] + "", i = 0, n = arguments.length; while (++i < n) string += arguments[i] + "" + strings[i]; img.src = string.trim(); img.className = "slide slide--img"; return img; }; return slide; }38:[] 32:{"id":"11e7626daf298033","slug":"atheletic-running-shoes","title":"Atheletic Running Shoes","thumbnail":"d391fa014fdb54e055c942e167d189fa9c00f89c3bf25d354047dee2066b91b5","access_level":"public","create_time":"$D2019-03-06T02:00:26.865Z","update_time":"$D2019-03-15T14:05:53.861Z","view_time":null,"first_public_time":"$D2019-03-15T12:09:10.823Z","has_unpublished_edits":null,"fork":false,"stars":3,"starred":false,"owner":{"type":"team","id":"059223733e8a6633","login":"userinfamous","name":"Virento Voshe","avatar_url":"https://avatars-next.observableusercontent.com/c39a8fad3c8924ba9ea705370b6bd33e80bcfc9a9deb3d90d0595a0119ae9464","tier":"starter_2024"},"version":315,"publish_version":315,"role":null,"authored":false,"authors":[{"type":"individual","id":"f374fa0b2aa863c0","login":"userinfamous","name":"Virento Voshe","avatar_url":"https://avatars-next.observableusercontent.com/c39a8fad3c8924ba9ea705370b6bd33e80bcfc9a9deb3d90d0595a0119ae9464","tier":null}],"members":[{"type":"individual","id":"f374fa0b2aa863c0","login":"userinfamous","name":"Virento Voshe","avatar_url":"https://avatars-next.observableusercontent.com/c39a8fad3c8924ba9ea705370b6bd33e80bcfc9a9deb3d90d0595a0119ae9464","tier":null,"role":"editor"}],"comments":[],"custom_thumbnail":false,"trashed":false,"lapsed":null,"subscribed":null,"forks":0,"collection":{"id":"09d4d83843b97087","slug":"retail","title":"Retail","owner":{"id":"f35c755083683fe5","login":"observablehq","name":"Observable"}},"type":"notebook","body":{"title":"Atheletic Running Shoes","cells":[{"id":18,"value":"md`# Atheletic Running Shoes`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":22,"value":"md`The history of athletic running shoes only started around 2 hundred years ago or so. The origin of footwear, however, extends well beyond the 20,000 years of human civilization. Interestingly enough, all the big companies we now know of today, most of them started in the 20th century and their original founders were and still to this day considered the pioneers of running shoes.`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":26,"value":"md`# Primary Sector`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":28,"value":"$34","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":35,"value":"md`# Secondary Sector`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":37,"value":"md`\nTo process the raw materials into making the actual component of the shoes thereby adding value to it, one needs a processing factory.
\nAdidas's supplier Framas **[5]** have factories in :\n- **China**: Fuzhou\n- **Hong Kong**: Kowloon\n- **Vietnam**: Ho Chi Minh, Dong Nai, and Hanoi\n- **US**: Portland\n- **Germany**: Pirmasens\n- **Korea**: Asan, Busan\n- **Indonesia**: Jakarta\n\n**Geographical Models Involved:**
\nAccording to the **Weber's Least Costs Theory**, the shoemaking industry is a bulk-reducing industry, therefore, it would make sense for their factories to locate near the raw materials. This makes sense because Adidas have suppliers or manufactureres in Vietnam and Indonesia, which is presumably is where they get most of their raw materials from, or at least where it is easily acessible next to a trading port. \n`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":197,"value":"slide.img`https://imgur.com/7uiywL0.jpg`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":203,"value":"md`**Jobs in the Secondary sector include** Factory Workers and Construction Workers. Interestingly enough, refining oil is a secondary job because it consists of monotonous labor as that of a typical manufacturing job. `","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":97,"value":"md`# Tertiary Sector:`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":229,"value":"$35","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":207,"value":"slide.img`https://imgur.com/qY4aNk0.png`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":103,"value":"md`**Jobs in the tertiary sector include** Sales Representative, Cashier, Manager, Truck Driver that delivers the goods and Customer Service.\n\n**Geographical Models Involved:**
\n**Dependency Theory** tells us that LDCs need to rely on MDCs for their economies to improve and vice-versa. That is why, we are able to see that there are more stores in core countries and less in lesser developed countries, instead, there are more manufacturing jobs in new industrialized countries/semi-periphery and more farming related jobs in LDCs/periphery countries.
This **model** basically summarizes the commodity chain and the character of development in geographical terms.\n`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":114,"value":"md`# Quaternary and Quinary`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":111,"value":"md`\n**Jobs in the quaternary sector** includes Lawyer, Physician (consult about bodily functions related to running), IT, Accountant, Web Designer, Fashion Designer, Graphic Designer, Programmer, Executives, Marketers, and Advertisers.\n\n**Jobs in the quinary sector** includes Researchers/Scientists that do research on materials used to make the shoe.`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":0,"value":"md`# Adidas Commodity Chain:`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":157,"value":"md`**Note** that the map below is less accurate and not official, the supplier map above (in secondary sector heading) is more accurate. This map only tries to describe the link between the different countries and their place in the commodity chain.`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":10,"value":"slide.img`https://imgur.com/UHchNDo.png`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":62,"value":"html`\n

Purple Arrow is from Cotton Farmer/Supplier to Manufacturer

Orange Arrow is from Manufacturer to Consumers

\n`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":290,"value":"slide.img`https://imgur.com/8j5pmyY.png`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":261,"value":"$36","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":126,"value":"md`# Adidas Shoe Cost Break Down`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":161,"value":"md`**Note** that the below pictures are only an analogy of percentage, it merely demonstrates the percentage of profits made reasonably predicted by the writer of the article on Solereview **[8]**. While the retailer makes more money, the producers and supplier make their share of profit more in terms of scale rather than in single transactions.`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":123,"value":"slide.img`https://imgur.com/dfFXXEH.png`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":137,"value":"slide.img`https://imgur.com/5UjyMwm.jpg`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":79,"value":"md`## Reference:`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":133,"value":"md`\n[1]-Materials in Shoe: https://www.adidas-group.com/en/sustainability/products/materials/
\n[2]-Top Cotton Exports By Country: http://www.worldstopexports.com/cotton-exports-by-country/
\n[3]-Top Petroleum Exports By Country: https://en.wikipedia.org/wiki/List_of_countries_by_oil_exports
\n[4]-Top Rubber Exports By Country: http://www.worldstopexports.com/natural-rubber-exports-country/
\n[5]-Supplier Map by Framas: https://www.framas.com/en/locations/
\n[6]-Map of Supply Chain by Delphine: https://open.sourcemap.com/maps/57d3c710e128617462596289
\n[7]-Adidas Stores: https://www.adidas.com/com/storefinder/#/
\n[8]-Cost of a Running Shoe Article by SolereView: https://www.solereview.com/what-does-it-cost-to-make-a-running-shoe/
\n\n\n\n`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":12,"value":"md`## Implementaion of slides is by Mike Bostock: `","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":8,"value":"hl = require(\"@observablehq/highlight.js@1.0.0/highlight.min.js\")\n","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":6,"value":"$37","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"}],"files":"$W38","stdlib":"1","titling":"auto"}} 33:"$32:body"