Adidas, which recently terminated its partnership with rapper and designer Kanye West, known as Ye, needs a new focus, according to industry experts. Adidas CEO Bjorn Gulden, who
assumed the role on Jan. 1, said that the company needs to refocus on its core values and build credibility as a performance brand by partnering with both athletes and celebrities. The Yeezy shoe brand, a key profit driver for the company, was heavily relied upon, and analysts suggest that Adidas should think more tactically about fresh celebrity partnerships instead of relying on one personality. Sportswear firms have worked with celebrities for years, and while these partnerships can be lucrative, they also pose significant risks.
The termination of Adidas' partnership with Kanye West has reportedly cost the company up to €16m. Gulden confirmed that Adidas will continue to partner with celebrities and artists, and not just athletes, as he believes that it is necessary to do both. However, Gulden hinted at a change of emphasis at Adidas, saying that the company needs to refocus on its core values and invest in more sports, as it is a part of the company's DNA. Gulden has pledged to turn Adidas around after it warned of a possible operating loss of €700m this year due to the termination of its partnership with West.
According to industry analysts, Adidas needs to focus on building its brand and core values, as relying solely on celebrity partnerships can be risky. Brands must consider the potential costs of partnering with celebrities, who may experience a scandal or a public relations disaster. Adidas has already started taking steps to reduce its reliance on celebrity partnerships by working with more sports teams and organizations. Gulden has also pledged to widen the company's reach and expand its product offerings.
Adidas' decision to terminate its partnership with Kanye West is a reminder that relying too heavily on one celebrity partnership can be risky. The Yeezy shoe brand was a significant profit driver for the company, but Adidas' decision to terminate the partnership has highlighted the potential costs of relying solely on celebrity partnerships. While these partnerships can be lucrative, companies must also be aware of the potential risks involved. In light of the recent termination, Adidas is seeking to refocus on its core values and expand its offerings beyond celebrity partnerships.
In conclusion, Adidas' decision to terminate its partnership with Kanye West has highlighted the potential risks of relying solely on celebrity partnerships. The Yeezy shoe brand was a significant profit driver for the company, but Adidas must now seek a new focus and think more tactically about future partnerships. The company must focus on building its brand and core values while also investing in more sports and expanding its offerings beyond celebrity partnerships. By taking these steps, Adidas can better position itself for success and reduce its reliance on any one partnership. Photo by David Shankbone, Wikimedia commons.