Adidas recently chose to terminate its ties with Kanye West, now known as “Ye”. Industry experts suggest that the company should take this opportunity to search for new & upcoming celebrity associates, rather than depending excessively on one particular person. Adidas CEO Bjorn Gulden stands by the decision to end the collaboration with the rapper, citing “unacceptable, hateful and dangerous” comments made by Ye on social media and in interviews. However, he also acknowledged the unique value of the Yeezy shoe brand, which became a significant profit driver for the company.
While sportswear brands have a history of working with celebrities, it’s a lucrative but potentially risky move. Gulden suggested that Adidas will continue to partner with not only athletes but also celebrities and artists. He believes that the company needs to refocus on its core by investing more in sports and expanding its offerings.
Experts suggest that Adidas should learn from the incident with Kanye West and be more careful in selecting celebrities to partner with in the future. They also advise that Adidas should diversify and spread its bets, so it’s not too dependent on one person. One example of a successful and long-lasting partnership is Nike’s collaboration with Michael Jordan for the Air Jordan line of basketball shoes and clothing.
Adidas has partnered with several celebrities in the past, including Beyonce, Pharrell Williams, Stella McCartney, Rita Ora, and Jenna Ortega. However, the Yeezy line has been the most successful. Gulden admits that Adidas may have spread itself too thinly with celebrity partnerships and collections with brands like Balenciaga, Gucci, Prada, and Moncler.
Investors are fairly positive on Gulden’s ability to bring about a change in Adidas. Since the CEO assumed charge from Jan 1, stock prices of the company have seen an impressive increase of 23%. Overall, Adidas needs to think tactically about fresh celebrity partnerships, learn from its mistakes, and avoid relying too heavily on one personality.
