Impossible is Nothing. That is why Adidas has done some things others couldn’t have done in the first place. Just ask Ye West or Beyonce, both of whom have now been parted from the brand.
Ye West’s anti-Semitic remarks led the brand to discontinue the massively profitable Yeezy and “creative differences” with Beyonce led to the halt of ‘Ivy Park’ by mutual decision. Cutting ties with two of their most high-profile celebrity partners was by no means an easy decision to take but Adidas took the plunge. CEO Bjorn Gulden has stated that the proceeds from the sale of the remaining Yeezy products will “be donated to organizations that help us and were harmed by what Ye said”.
The earnings reports also paint a sobering picture with the loss of Yeezy and Ivy Park hurting the company by estimated figures of 400 and 250 million USD respectively, causing the reputed giant its first operational loss in 3 decades. Yet the company remains optimistic about a grand comeback.
Under new CEO Gulden who joined Adidas (from Puma very recently), marketing will most likely play a crucial role. In March, he stated that he will replace the company’s departing global head of global brands himself. Mr.Gulden has said he intends to build brand awareness as part of a goal to return the company to profitable growth next year.
The new way will most likely involve fresher relationships, targeting a newer potential customer base with demographics influencing key decisions. They have already stepped forward in that direction by all accounts. In February, they released their first new label in 5 decades, Adidas Sportswear, built for everyday movements and occasions. The face of the brand was none other than Jenna Ortega, the 23-year-old actress, advocate, producer, and style icon. According to Bob Lynch, founder, and CEO of Unitedsports (a sports intelligence platform), “It’s an opportunity for them to reset and start to invest in the next generation of creators and artists that are out there”. He also points out that these sorts of partnerships will help the brand on TikTok as well, a favorite app among GenZ ers (with 3.5 billion downloads). It makes sense as Ye West and Beyonce were perhaps not the biggest on TikTok. With Adidas execs having said that they plan to prioritize sports and athlete partnerships, athletes like Jude Bellingham or Son Heung-min, and Tatiana Flores provide great engagement on social media.
Being Adidas they will be mindful of other advancements as well. Artificial Intelligence is catching up by the minute and it does pose a risk to web3 advancements like Augmented Reality. Adidas has collaborated with Monkey Kingdom, an Asia-based NFT project. It does provide Adidas the opportunity to confirm and deepen its relationship with Web3 enthusiasts in Greater China after its virtual success in the West. The drop will also be made available across Hong Kong and Taiwan in late May.
