Best in Class Treasury Solution in the Middle East: adidas AG

adidas AG is a German athletic and lifestyle apparel, accessories and footwear corporation headquartered in Herzogenaurach, Bavaria, Germany. It is the largest sportswear manufacturer in Europe, and the second largest in the world.

Companies all over the world are vying to both set foot in and increase their access to Saudi Arabia’s giant consumer market. adidas wanted to leverage on existing growth by opening a local subsidiary to oversee a target of 100+ in-country stores by 2025. The new structure would help the company capitalize on new flagship partnerships with KSA football clubs and the Saudi Pro League.

The solution

In the summer of 2022, adidas approached HSBC to work with its local bank, Saudi Awwal Bank (SAB). The two banks would work as one bank to provide adidas with a consistent support model.

The implementation began with adidas opening accounts in KSA. These accounts included monitoring visibility via existing host-to-host (H2H) connectivity, as well as the ability to execute payments and receipts. adidas wanted to integrate a liquidity solution from the outset to ensure efficient cash management for the newly founded subsidiary and the company also wanted card collection services in 40 stores to enable customer payments.

SAB ensured adidas consumers were able to use their preferred payment method from day one. adidas also looked for a cash in transit partner and partnered with SAB as a single banking partner in the country allowing full consolidation of the business. This has allowed the treasury teams both locally and in the head office in Germany, to monitor transactional flows and expedite the rollout of services in KSA in line with adidas’ growth in the market.

In a close cooperation global treasury and local finance teams met the challenging project timeline, demonstrated excellent communication and aligned targets between all involved parties. The whole process has supported consumer experience in KSA, fuelling the company’s growth.

More recently, adidas has opted to align its host-to-host connectivity with its global model. This provides consistency allowing for maximum oversight of accounts and better use of cash globally, resulting in greater returns.

Key benefits

• Process efficiencies.
• Improved visibility.
• Future-proof solution.
• Exceptional implementation (budget/time).