TMZ: Adidas set to lose 1.3 billion in sales in 2023 following Kanye split

[BG-NY]

https://twitter.com/TMZ/status/1624059534556688385

Obviously they had to cut ties, but the fact that they didn’t have new lines/collaborations to fill the void is a massive tactical error for the business.

[Alben Barkley]

I'm ready to forgive Kanye yesterday if he just gets the help he needs. I'm honestly back to a place of just feeling bad for the man. He has bipolar disorder which is a massive bitch at the best of times, and he's in denial about it now and off his meds. It's cost him billions too. The whole thing was just so unnecessary. I get the feeling, based on the fact that we haven't really heard anything from him in a couple months, that he might have crashed from his manic episode. I hope for the best, but if so, this is actually a very dangerous time for Kanye. Each day I sometimes wonder if I'll get a news notification saying Kanye took his own life. He really, REALLY needs help. He probably should have been committed after the Alex Jones debacle. That's not Kanye. Yeah he's always been a bit of a douche and a narcissist, but not a f--king Nazi. That's just not him, that's somebody else taking over his body. I empathize with the mentally ill, and that extends to Kanye. I hope and pray he gets the help he needs sooner rather than later, and that it doesn't all end in the tragedy I fear it will.

[BG-NY]

Removing the Yeezy label and reselling the merchandise at a discount in its own stores in the U.S.

One option for Adidas is to remove Yeezy-identifying labels and attempt to resell its inventory at its own stores and its retail partners for a discount. That strategy may be Adidas' best bet to turn some profit, Powell said, but repackaging the merchandise comes with its own challenges.

"All of this work is extremely labor intensive and it can only be done one shoe at a time," he said. "So, it's very costly to go through this process."

The Yeezy line is also tricky to refashion because of its distinct designs.

Consider the foam runner — a futuristic slip-on with sculpted lines and a monochrome finish. Adidas could try to sell its own version of the foam runner, but consumers may still associate the shoe with its former designer.

"Will the consumer buy it? That remains to be seen," Powell said. "That's where the biggest question mark is in all of this."

Selling the Yeezy merchandise in smaller markets outside the U.S.

Generally, repurposing products at a deep discount could have consequences for a brand's reputation. So companies look to smaller markets, likely in developing countries, to make a profit without hurting their image in big consumer markets such as the U.S. and Europe.

Adidas may have better luck selling the Yeezy line in smaller markets, said Marshall Fisher, a professor at the Wharton School of the University of Pennsylvania who studies retail operations and supply chain management.

"Somewhere where it's not visible in their primary markets would be one approach they might take," Fisher, who has worked with Nike, told NPR.

He added that removing the Yeezy labels will still be important to this strategy, and there is still a chance that even smaller markets may not be interested in the discounted products given its reputation.

https://www.npr.org/2023/02/13/1155965676/adidas-repurpose-unsold-yeezy-options-kanye-west

According to analysts, Adidas likely will either change unlabel the Yeezys and sell in their own stores, or sell in non-US markets.

[Ragnaroni]

So they split with Kanye because he said anti semitic stuff and they're suffering for it? Better not do another deal with Kanye..

[ProudModerate2]

This story is hogwash.
Adidas will not "suffer" financially from this. There is plenty of (other) sales.

[Crumpets]

Given how popular Adidas is (was) in Russia, and the fact that they closed all their stores there 11 months ago, I have a hard time seeing Kanye being the only factor at play here.

[Meclazine for Israel]

I reckon this story is a bit of a crock.

Adidas has great market share and as a global brand, it's ability to change it's 2024 product line up will see it clear of any influence Kanye ever had.

[emailking]

The story says Adidas is blaming the loss on the Kanye split. Are you guys saying that is false, or Adidas is spinning?

[BG-NY]

Demand has surged — not slumped — for Kanye West's Yeezy sneakers, one CEO says

New York(CNN) Adidas last year dumped Ye (formerly known as Kanye West) and his once hugely popular Yeezy clothing and sneaker brand because of his antisemitic remarks. But the controversy has seemingly spurred demand for the shoes.

Yeezy sneakers currently are among the top three sellers on Impossible Kicks, a large online reseller of high-end sneakers and clothing that has 17 store locations in the United States.

"Demand for Yeezys has surged 30% since last October-November," said John Mocadlo, CEO of Impossible Kicks. He said Yeezy sneakers are among the top three most-popular brands on the platform after Jordans and other Nike footwear, including Dunk and Air Max shoes.

"We sell about 30,000 sneakers in total every month. Probably 6,000 to 7,000 of those right now are Yeezys," he said.

The Yeezy 350 with black and white in the shoe's color pattern are among the most sought-after at resale, and priced 20% to 40% above the shoe's retail value, said Mocadlo. The price at resale for those two options ranges from $350 to $400. The boosted sales of Yeezy's at resale wouldn't benefit West because the secondary market represents items that were already purchased.

Mocadlo said many customers hoping to score Yeezy sneakers look at them as collector's items, hoping to see a further increase in value, while others simply like their style and comfort of the sneakers and want to add them to their wardrobe.

Many customers, he said, are unaware of the controversy tied to the brand's designer. "I'm very surprised by that," he said.

Adidas, which had partnered with West since 2013 to produce and market his Yeezy brand, wasn't the only company to cut ties with Ye because of his antisemitic remarks.

The fallout extended to Gap, which removed all Yeezy Gap merchandise from its stores. Footlocker, TJ Maxx and luxury fashion house Balenciaga also broke ties with Ye and stopped selling Yeezy merchandise.

Adidas said earlier this month that it expects to lose $1.3 billion in revenue this year after ending its nine-year partnership with Ye, leaving the company stuck with a lot of unsold Yeezy-branded merchandise. Adidas said it would try to repurpose some of it without the Yeezy branding.

Mocadlo said Impossible Kicks has about $2 million in Yeezy sneaker inventory currently, about 10,000 pairs. "It is getting a little bit difficult to get more because the inventory is starting to dry up after the controversy," he said.

So now prices for Yeezy sneakers are climbing due to tighter supply, according to StockX, a leading sneaker resale platform.

"Since the start of the year, the average price of Yeezy sneakers has increased but sales overall have decreased on StockX," Drew Haines, director of sneakers and collectibles at StockX, told CNNBusiness. "This is in line with the principles of supply and demand and consistent with what we'd expect to happen when no new supply is in the market."

StockX declined to comment specifically on demand for Yeezy sneakers on its platform.

https://amp.cnn.com/cnn/2023/02/27/business/yeezy-sneaker-resale-demand/index.html

[DaleCooper]

It's pretty sad that Kanye West loves Hitler so much.

[Shaula🏳️‍⚧️]

They shouldn't have cut ties. It should be illegal for companies to discriminate based on political views.

[ηєω ƒяσηтιєя]

Adidas will be fine. They are a global brand that is primarily connected with the biggest sport in the world (soccer).