The country of design is not the country of manufacture
When you buy Adidas, you buy a German brand. When you buy Nike, you buy an American brand. But the shoes on your feet were almost certainly not made in Germany or the United States. They were made in Vietnam, Indonesia, China, or some combination of the three.
This matters because the EIU Democracy Index measures the country where the real labour impact occurs. Vietnam scores 3.08. Indonesia 6.71. China 2.12. Germany, where Adidas has its headquarters, scores 8.58. The difference between these numbers is measured in workers' rights, freedom of association, and access to labour justice.
Adidas: German design, global assembly
Adidas was founded in Herzogenaurach, Germany, in 1949. Its headquarters remain there. But its production is distributed primarily between Vietnam (EIU 3.08) and Indonesia (EIU 6.71). Vietnam is the country that produces the most Adidas shoes in the world. Trade unions exist but are state-controlled; independent collective bargaining is limited. Indonesia, at 6.71, exceeds DemocracyMarket's threshold by a narrow margin.
New Balance: the case of the 25% made in full democracies
New Balance is the sector's positive anomaly. The American brand (EIU 7.85) maintains five factories in the United States and one in the United Kingdom. Approximately 25% of its total production comes from these plants, employing workers with wages and rights well above the standards of Vietnam or Indonesia.
For DemocracyMarket customers, New Balance models made in the USA or UK best pass the democratic filter. They are identifiable by the 'Made in USA' or 'Made in England' label and typically a slightly higher price.
On Running: Switzerland as origin, Vietnam as reality
On Running is the Swiss brand founded in Zurich in 2010. Switzerland has an EIU of 9.15. But On Running manufactures the majority of its shoes in Vietnam (EIU 3.08). The brand partially compensates with supplier audit programmes and its Cyclon initiative — a subscription model for circular shoes made from recyclable materials.
Nike, Salomon and Asics: three different models
Nike manufactures primarily in Vietnam (36%), Indonesia (22%) and China (18%). Its supply chain is the least transparent of the major sports brands in terms of public traceability. Salomon (France, EIU 7.99) maintains a stronger European design component. Asics (Japan, EIU 8.40) keeps part of its production in Japan, especially high-performance lines like the Metaspeed.
Chain breakdown: outsole, upper, laces, packaging
- →Outsole: generally rubber manufactured in Asia — the component most frequently from low-democracy countries.
- →Midsole: the cushioning component. Some brands manufacture in Europe or the US for premium models.
- →Upper: technical fabric or synthetic leather. Labour-intensive assembly, frequently in Vietnam, Indonesia or Bangladesh (EIU 5.99, below DemocracyMarket's threshold).
- →Laces and accessories: generally subcontracted to local suppliers in the assembly country.
Which certifications matter
- →SA8000: rigorous international social accountability standard, third-party verified.
- →Fair Trade Certified: guarantees minimum working conditions and a development premium for workers.
- →bluesign: environmental and labour criteria for textile factories.
- →B Corp: comprehensive corporate certification. On Running and Patagonia certified; Nike is not.
How to choose well: the practical guide
- →Look for 'Made in USA', 'Made in England' or 'Made in Japan' labels. Rare but exist in New Balance and Asics.
- →Check whether the brand publishes its factory list — a sign of greater traceability.
- →Value SA8000 and B Corp certifications as additional indicators.
- →For brands manufacturing in Vietnam or Indonesia, check for independent factory audit programmes.
- →Use DemocracyMarket: our algorithm applies the EIU >6.0 filter to all identifiable components.
The sports shoe market is one of the most complex in terms of democratic traceability. No brand has its entire chain in full democracies, with the partial exception of some New Balance and Asics models. But there are significant differences between brands, and those differences are navigable with the right information.
