Core Points - Adidas faces controversy over its new shoe "Oaxaca Slip-On," which is accused of cultural appropriation of traditional Mexican huarache sandals, leading to strong criticism from Mexican politicians [2] - The company has issued an apology, acknowledging the cultural significance of the Mexican indigenous community and the craftsmanship involved [2] - The shoe was developed in collaboration with Mexican designer Willy Chavarría, who also apologized for the unauthorized use of cultural elements [2] Financial Performance - Footwear contributes over half of Adidas's revenue in 2024, aiding the company in returning to profitability [3] - Adidas experienced a decline in net profit from 2021 to 2023, with 2023 marking its first loss since 1992 [4] - Key drivers for revenue growth in footwear include soccer shoes, running shoes, and the resurgence of classic models like Samba, which saw a 300% increase in sales [4] Recent Financial Results - In Q2 2025, Adidas reported global revenue of €5.952 billion, a 2.2% year-on-year increase, with net profit rising by 94.6% to €369 million [5] - Footwear revenue grew by 9%, with the ADIZERO 0 series running business increasing by over 25% [5] Impact of Tariffs - Adidas's CEO, Gulden, indicated that the company faced tens of millions of euros in impact from tariffs in Q2, with an expected increase in product costs of €200 million in the U.S. [6] - The company does not plan to pass on increased costs to other markets [6] Cultural Appropriation Context - The controversy surrounding cultural appropriation differs from simple plagiarism, as it involves unclear boundaries of original IP and adjustments made to distinguish from the original [7] - Experts suggest that brands should communicate with original IP holders before using cultural elements to avoid potential infringement [8]

Core Viewpoint - Adidas faces backlash in Mexico for its new shoe "Oaxaca Slip-On," which is accused of cultural appropriation of the traditional Mexican "huarache" sandals, leading to demands for compensation from the Mexican government and public apologies from the company and the designer [1][5][6]. Group 1: Product Details - The "Oaxaca Slip-On" is a collaboration between Adidas and designer Chavarria, featuring woven leather and a thick rubber sole, resembling traditional sandals made by artisans in Oaxaca, Mexico [2][3]. - The shoe's design was inspired by a traditional design from Oaxaca, which has led to accusations of unauthorized appropriation of cultural elements [5]. Group 2: Reactions and Apologies - Adidas issued an apology acknowledging the cultural significance of the Mexican indigenous community and expressed a commitment to engage with local communities respectfully [5]. - Designer Chavarria, who has Mexican-American heritage, also apologized for not establishing deeper collaboration with the local indigenous community before the shoe's design [5]. Group 3: Legal and Political Context - Following the shoe's release, Mexican President Sheinbaum accused Adidas of "stealing the creativity" of indigenous communities and announced negotiations for compensation [6]. - The Mexican government has a history of defending traditional designs and has enacted laws imposing fines and imprisonment for unauthorized use of indigenous cultural expressions [7].

Core Viewpoint - Adidas faces backlash in Mexico over its new shoe "Oaxaca Slip-On," which is accused of cultural appropriation from traditional Mexican "huarache" sandals, leading to demands for compensation from the Mexican government [1][6]. Group 1: Product Details - The "Oaxaca Slip-On" is a collaboration between Adidas and designer Chavarria, featuring woven leather and a thick rubber sole [3]. - The shoe's black woven upper resembles traditional sandals made by artisans in Oaxaca, Mexico [3]. Group 2: Reactions and Apologies - Adidas issued an apology, acknowledging the cultural significance of the Mexican indigenous community and the importance of their craftsmanship [5]. - Chavarria, the shoe's designer, expressed regret for not obtaining authorization to use elements of Oaxaca's culture and emphasized his intention to honor the community's culture and art [5]. Group 3: Government Response - Mexican President Sheinbaum accused Adidas of "stealing the creativity" of indigenous communities and announced negotiations for compensation [6]. - The Mexican government is prepared to take legal action against Adidas for cultural appropriation, reflecting a broader effort to protect traditional designs from unauthorized use [7]. Group 4: Legal Context - Mexico has enacted laws imposing heavy fines and imprisonment for unauthorized use of indigenous cultural expressions, indicating a strong stance against cultural appropriation [7]. - Previous companies, including Zara and Anthropologie, have faced similar backlash for designs perceived as too similar to traditional Mexican culture [7].