{"id":27899,"date":"2018-11-11T14:06:12","date_gmt":"2018-11-11T19:06:12","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/future-of-footwear-additive-manufacturing-at-adidas\/"},"modified":"2018-11-11T15:11:25","modified_gmt":"2018-11-11T20:11:25","slug":"future-of-footwear-additive-manufacturing-at-adidas","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/future-of-footwear-additive-manufacturing-at-adidas\/","title":{"rendered":"Future of Footwear? Additive Manufacturing at Adidas"},"content":{"rendered":"

Introduction: Adidas Futurecraft 4D<\/strong><\/p>\n

Until recent years, the concept of additive manufacturing has largely been associated with prototyping and low-volume production.\u00a0 Rapid advances in research and development have moved forward the technology, and as additive manufacturing methods become cheaper and faster, 3D-printed parts are becoming more ingrained in retail and consumer goods.<\/p>\n

In footwear, Adidas is one such organization at the forefront of this evolution. Last year, Adidas announced the introduction of its Futurecraft 4D shoe[1]<\/a> \u2013 a sneaker that uses a midsole formed with 3D-printed material.\u00a0 The Futurecraft midsole is a lattice structure created from liquid resins hardened by \u201cdigital light synthesis\u201d technology[2]<\/a>. \u00a0The sneakers are currently priced at $300, placing the shoes as a more premium product among Adidas offerings.<\/p>\n

\"\"<\/a>
Figure 1. Futurecraft 4D sneaker<\/figcaption><\/figure>\n
\"\"<\/a>
Figure 2. Close-up of Futurecraft 4D midsole<\/figcaption><\/figure>\n

Adidas’s Additive Manufacturing Strategy<\/strong><\/p>\n

For Adidas, a shift towards additive manufacturing translates to reduced production costs throughout the supply chain.\u00a0 In manufacturing, reduced costs come from eliminating expensive steel-molds used in traditional sneaker production.\u00a0 On the distribution side, additive manufacturing allows for a more localized approach to delivery – Adidas currently manufactures most of its shoes in Asia, whereas its Futurecraft 4D line can be produced closer to point of use due to the comparatively lower fixed costs of production for 3D-printing. Bringing production closer to point of use means that Adidas can cut down delivery times and shipping costs for its consumers.<\/p>\n

Additive manufacturing also shortens up the production development cycle of Adidas products.\u00a0 Compared to the 15-18 months it takes from ideation to store sales in normal factory production of sneakers, it took just 11 months for the Futurecraft 4D release earlier this year[3]<\/a>.\u00a0 Product introduction cycles can further be shortened to 2 months as capabilities continue to develop[4]<\/a>. In a highly diversified market, shorter product lifecycles allow Adidas to maintain lower inventory levels, rapidly iterate, and effectively stay ahead of consumer trends.<\/p>\n

In the short term, Adidas plans to scale up its bandwidth to produce Futurecraft 4D sneakers at higher volumes.\u00a0 Demand has vastly outpaced production[5]<\/a>, and the limited release versions of the sneakers have appeared on resale markets at almost $3,000 per pair[6]<\/a>. \u00a0To meet demand requirements, Adidas has secured enough 3D-printing capacity to produce one million sneakers per year[3]<\/a>, a drastic increase over the most recent annual production release of 5,000 shoes. In the meantime, Adidas is continuing to offer multiple small-scale product releases each year.<\/p>\n

For the long term, Adidas plans to use 3D-printing solutions to generate customized Futurecraft sneakers based on individual physiological and performance needs\u00a0[4]<\/a>.\u00a0 The shoe will have a different geometry and lattice structure based on each athlete\u2019s build, foot structure, and use of the shoe.\u00a0 The personalized shoe would then be manufactured at local \u201cmicro-factories\u201d to allow for shorter delivery times [7]<\/a>.<\/p>\n

Recommendations<\/strong><\/p>\n

With recent investments into manufacturing capacity, Adidas should hold off on introducing Futurecraft shoes to the mass market until due diligence in testing the product is fully completed.\u00a0 As mass customization creates room for error,\u00a0 producing a high-quality product and maintaining credibility is especially essential when competitors like Nike are developing their own 3D-printed offerings [9]<\/a>. Updates to the software used in the additive manufacturing process can be rolled out without compromising investments on the hardware side. In other words, Adidas can continue building up the capacity to produce while tweaking the design and formula of the lattice structure. Adidas already has an early-mover advantage by building brand awareness through limited releases of the product – the company just needs to make sure to prove out large-scale manufacturing capabilities, especially regarding customization, before a larger release.<\/p>\n

Moving forward, Adidas should also consider creating the \u201cupper\u201d (or top) part of the sneakers through additive manufacturing. \u00a0\u00a0As the shoe is currently designed with only the midsole part of the shoe being 3D-printed, the product is still somewhat constrained since manufacturing the rest of the shoe occurs via a different production process.\u00a0 Having a consolidated manufacturing platform would allow for more customization and localized production.\u00a0 Customizing the \u201cupper\u201d would allow Adidas to catch up with Nike, who already produces a shoe with a 3D-printed upper portion[8]<\/a>.<\/p>\n

Questions<\/strong><\/p>\n

With rivals like Nike developing their own customizable 3D-printed offerings, how will Adidas keep a competitive edge? With lower costs of production, the development of additive manufacturing technology arguably creates a more crowded competitive landscape in footwear. How will established retailers compete with emerging players?<\/p>\n

\"\"<\/a>
Figure 3. Nike\u2019s VaporFly Elite Flyprint 3D. How will Adidas compete with other retailers and new players in the market?<\/figcaption><\/figure>\n

Word Count: 761<\/em><\/p>\n

[1]<\/a> \u201cAdidas Futurecraft.\u201d\u00a0Adidas United States<\/em>, www.adidas.com\/us\/futurecraft.<\/p>\n

[2]<\/a> \u201cAdidas Announces Release Of FUTURECRAFT 4D, Officially Ushering In The Future Of Sport Performance Footwear.\u201d Adidas NEWS STREAM, 12 Jan. 2018, news.adidas.com\/us\/Latest-News\/adidas-announces-release-of-futurecraft-4d–officially-ushering-in-the-future-of-sport-performance-f\/s\/cab3cf86-0f80-4a8d-93c2-e7388f6a908b.<\/p>\n

[3]<\/a> Cheng, Andria. \u201cHow Adidas Plans To Bring 3D Printing To The Masses.\u201d\u00a0Forbes<\/em>, Forbes Magazine, 23 May 2018, www.forbes.com\/sites\/andriacheng\/2018\/05\/22\/with-adidas-3d-printing-may-finally-see-its-mass-retail-potential\/#46fe16904a60.<\/p>\n

[4]<\/a> Petch, Michael. \u201cAdidas and Carbon Announce Futurecraft 4D and Plans for Industrial Scale Mass Customization with 3D Printing.\u201d\u00a03D Printing Industry<\/em>, 7 Apr. 2017, 3dprintingindustry.com\/news\/adidas-carbon-announce-futurecraft-4d-plans-industrial-scale-mass-customization-3d-printing-110274\/.<\/p>\n

[5]<\/a> Dillet, Romain. \u201cHow Adidas and Carbon Are Changing the Sneaker Supply Chain.\u201d\u00a0TechCrunch<\/em>, TechCrunch, 7 Sept. 2018, techcrunch.com\/2018\/09\/07\/how-adidas-and-carbon-are-changing-the-sneaker-supply-chain\/.<\/p>\n

[6]<\/a>Welty, Matt. \u201cThe Most Expensive Sneakers of 2017.\u201d\u00a0Complex<\/em>, Complex, 14 Dec. 2017, www.complex.com\/sneakers\/most-expensive-sneakers-2017\/adidas-futurecraft-4d.<\/p>\n

[7]<\/a> \u201cAdidas and Carbon Step into New Supply Chain Processes.\u201d\u00a0Supply & Demand Chain Executive<\/em>, 10 Sept. 2018, www.sdcexec.com\/software-technology\/news\/21021571\/adidas-and-carbon-step-into-new-supply-chain-processes.<\/p>\n

[8]<\/a> Lai, Eric. \u201cBreaking World-Records with Nike’s 3D Printed \u2018Flyprint\u2019 Shoes.\u201d\u00a03D Printing Industry<\/em>, 17 Apr. 2018, 3dprintingindustry.com\/news\/breaking-world-records-nikes-3d-printed-flyprint-shoes-132265\/.<\/p>\n

[9]<\/a> \u201cNike’s 3D Printed Elite Shoe Preparing for a Wider Release.\u201d\u00a03D Printing Industry<\/em>, 1 Nov. 2018, 3dprintingindustry.com\/news\/nikes-3d-printed-elite-shoe-preparing-for-a-wider-release-142527\/.<\/p>\n","protected":false},"excerpt":{"rendered":"

Sportswear manufacturer Adidas is incorporating 3D-printing in its new sneaker line<\/p>\n","protected":false},"author":11814,"featured_media":27900,"comment_status":"open","ping_status":"closed","template":"","categories":[4102,3340,4295,2373],"class_list":["post-27899","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-3dprinting","category-additive-manufacturing","category-process-development","category-process-improvement","hck-taxonomy-organization-adidas","hck-taxonomy-industry-retail","hck-taxonomy-country-germany"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2018\/","yoast_head":"\nFuture of Footwear? 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