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HERZOGENAURACH, Germany (Reuters) - Adidas () plans to speed up production and allow shoppers to customize more shoes and clothes, aiming to accelerate sales and profit growth over the next five years.

The German sportswear firm, which has been losing ground for years to fast-growing rival Nike (), said it was testing automated production units that would allow it to shift manufacturing from Asia closer to consumers.

"We will bring production back to where the main markets are," said Chief Executive Herbert Hainer, adding the current six weeks it took to ship from Asia to Europe was too long. "Robots can be everywhere."

Manufacturing closer to consumers should allow it to react more quickly to fast changing trends - like floral prints this spring - as it seeks to challenge market leader Nike as well as fashion retailers like H&M (), which are already much more responsive and are moving into sportswear.

Adidas said it would extend innovations pioneered by its NEO teen fashion brand which gets new products into store in 45 days, compared with a sports industry standard of 12-18 months.

Global brand chief Eric Liedtke, seen as the strongest internal candidate to succeed under-pressure Hainer, said Adidas was seeking to shake up the market in the same way that Nike did when it moved production to Asia in the 1980s.

Liedtke, a former American football player, said the German company's priorities included reversing falling sales in North America, retaining its global leadership in soccer, doubling sales in running and doing more to appeal to female consumers.

Nike has been taking market share from Adidas and is seen as doing a better job at setting trends.

Adidas said it expects sales to grow by almost half to above 22 billion euros ($24 billion) by 2020 and net income to rise around 15 percent per year on average, which Hainer conceded would not translate into a double-digit operating margin.

Hainer faced calls to step down last year after he was forced to abandon the company's previous five-year targets - including a 2015 goal for a 11 percent operating margin.

"Their main problem is weak profitability and we are hearing very little about that," said Ingo Speich, fund manager for Union Investment which has a 1.3 percent stake in Adidas, who has repeatedly criticized Hainer in the last year.

"The strategy will only be credible under new management as Hainer could not deliver on what he promised."

CEO SEARCH

The company said last month the board had launched a formal search to replace Hainer, in the job since 2001, although the CEO has said that did not mean his departure was imminent.

Adidas shares, which have risen 20 percent so far this year in part due to high expectations for the strategy presentation, were down 0.15 percent at 1030 EDT but still outperformed a 1.3 percent weaker German blue-chip index .GDAXI.

Adidas, founded by German shoe maker Adi Dassler in 1949, laid out its new strategy in its innovation center, where it demonstrated machines which allow shoppers to print their own names and logos on to its popular "Superstar" sneakers, tapping into a broader trend for personalized products.

It said it was working with German companies and the government on innovations in robotics and machines which can "knit" sneakers rather than having them sewn by hand, which could allow it to move production away from hubs in China, Cambodia, Laos and Vietnam.

To help it get closer to consumers, Adidas, which until a decade ago only sold its products wholesale, plans to open another 500-600 stores so that its own retail business accounts for above 60 percent of sales, from about half in 2014.

Adidas expects its cash flow to grow at a faster rate than operating profit in the next five years, allowing it to raise its range for future dividend payments to 30-50 percent of net income from a previous 20-40 percent.

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retailers excl food and drug specialists (trbc)

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Adidas to shift some production from Asia in quest for speed

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HERZOGENAURACH, Germany (Reuters) - Adidas () plans to speed up production and allow shoppers to customize more shoes and clothes, aiming to accelerate sales and profit growth over the next five years. The German sportswear firm, which has been losing ground for years to fast-growing rival Nike (), said it was testing automated production units that would allow it to shift manufacturing from Asia closer to consumers.

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A look at the design and production process behind the new Nike Clash Football boot collection. Nike's Mercurial Vapor VIII, CTR360 Maestri II, T90 Laser IV and Tiempo Legend IV boots feature a color clash design of traditional white with a bold second color signifying each boots style to stand out on pitch.

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Process: SBTG for HYPEBEAST Nike Air Force 1 & Huarache "AWOL Camo"

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Globalization is changing the world both good and bad. It benefits both rich and poor countries. The companies in rich countries set up factories in poorer countries which creates new jobs. Companies that move production offshore do this to keep their prices low. Lower production costs help them to keep their prices low. This benefits both the rich and poor countries. Countries that trade with one another want to maintain good relations which causes conflict among nations to be diminished. Economic interdependence may contribute to creating a more peaceful world. It allows us to share and exchange ideas, technology, music, and art across distances.

Foreign investments are important factors in globalization. It is the main way that multinational corporations expand offshore. In 1960, it was a period of rapid growth throughout the global economy. China received more foreign investments than any other developing country in 2007. Most of the money was used to start new businesses in urban areas which attracted workers from rural areas. China is growing more urban year by year. Most countries in Africa, Southwest Asia, and Central Asia attracted little investment, which makes their economies grow little or not at all. Most of the people there still depend on agriculture to make a living because other job opportunities are limited.

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In 1990, a ship was traveling from South Korea to the US carrying eighty thousand sneakers was hit by a big storm. Normally, sneakers have a smoother journey from Asia. Companies use several methods of transportation.

Sneakers are sent from Asia on big container ships mainly because this is the most inexpensive way and it can carry thousands of sneakers. The trip to transfer the shoes in huge weather proof containers to the US takes about two weeks. The ship can hold eight thousand containers.

When ships arrive on the west coast of the US, the containers are unloaded onto trains and trucks to transport across the US. This can take up to a week or longer. Most sneakers end up in Memphis because it is a major distributing center. A truck leaving Memphis in the morning can reach 75% of the nation's population by the next day.

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A lot of work goes into creating designs and materials, but manufacturing them is an even bigger job. A single sneaker could have more than 50 pieces and could take 120 people to put together a pair of shoes. In the 1960s, simple canvas and rubber shoes were produced in the US, Britain, and Germany. It wasn't until the 1970s, the sneakers became more complicated with the number of styles increasing, designs more complex, more labor, and costs were rising. They finally became too expensive to make in high wage countries like the United States so, companies started moving  to offshore or to other countries. Most moved to South Korea because of all of the workers available, but overtime, the wages there went up. The companies ended up moving to another offshore to China, Indonesia, and Vietnam which offered the same advantages as Korea. This was just like what happened 20 years earlier with American and European countries and for the same reasons.

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Sole
The sneaker's main sole material is rubber but there are many others that only are found in a few places of the world. They come together to create the upper, the mid, and the outer sole.
Upper
Some top parts of sneakers are made of natural materials, like cotton or leather. Other uppers are made of synthetic, or human-made, materials such as nylon.
Mid- Sole
The Mid- Sole is the part of the shoe that cushions the bottom of your foot. They are made of plastic and foam padding made from oil found in oil-rich countries. Chemicals are poured into mold and then baked which forms millions of gas bubbles that give a cushiony feel. Some soles contain "air bags" filled with pressurized gas.
Outer Sole
This part of the sneaker needs to be tough but flexible enough to put a spring in your step. They used to be natural rubber soles from the sap of rubber trees but today, most soles are synthetic rubber made from coal and oil.

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Sneakers were first made in the mid-1800s. They were designed to be simple shoes, but now they are far from simple. They were mainly used for tennis, croquet, and running. It wasn't until later that they became popular for basketball. For the next 100 years, the design changed very little, high tops or low cuts in black or white. In the 1950s, people began to wear them as casual shoes, everyday use, or fashion items instead of only for athletic purposes. Today, sneakers are designed to the activity. Companies have made changes to improve performance and comfort. New designs and colors have given a fashion appeal and companies hire stars to say their latest and greatest sneaker is cool.

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American's buy goods from all over the world because of globalization. In this society, almost anything can freely cross national borders. Americans use everyday items that have come from other countries. One common manufactured product that has become globalized is the sneaker made in Asia.