Does Kanyewest Really Have No Effect On The Growth Of Adidas?

An analysis is Kanye West pairs.

The Kanye Effect has become the most popular and controversial topic in the sports shoes industry.

There are people in the industry who say that limited hunger marketing has dominated the shoe market in the past year and has given Adidas a chance.

Massive exposure to achieve Jedi counter attack

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For the rapid development of Adidas in recent years, most people think that it is mainly related to their partners and super star Kanye West.

About 3 years ago, when Adidas was at its lowest point, in addition to its inability to resist its rival Nike, it had to face the constant provocation of Under Armour, which led investors to worry about its future.

Subsequently, Adidas signed a cargo star Kanye West from Nike in 2014 with a huge reward of $10 million and promised dividends, and soon launched the Yeezy series that has been sold so far.

The picture is Adidas Yeezy 350 Boost.

The picture is Adidas Yeezy 750 Boost.

Market research firm NPD's latest report shows that Adidas's market share in the US has almost doubled since last year. By the end of May this year, the market share of the brand in the United States was 11.3%, compared with 6.3% in the same period last year.

In the same 12 months, the market share of Nike in the United States decreased from 35.9% last year to 34.7%, and so did Jordan Brand.

The share of other major sports brands Skechers, New Balance, Converse and Under Armour in the American sports shoes market is 6.3%, 3.7%, 3.6% and 2.4% respectively.

Some analysts believe that Nike really needs to be vigilant. After all, adidas has increased its market share by only 6% in one year.

In April, Adidas's share of the American sports shoes market recorded a record 13%, exceeding Jordan Brand for the first time.

Since last year, adidas has been far ahead of Nike in terms of sales and profit growth, brand exposure and share price performance.

Data show that in the past year alone, adidas has sold 8 million pairs of Stan Smith and 15 million double Super Star.

So should Adidas's recovery be grateful to Kanye West?

While many people applauded this cooperation, Matt Powell, an analyst at NPD, a market research firm, put forward different opinions. Adidas's signing of Kanye West's $10 million is likely to be wasted, and the star halo of Kanye West has no effect on the growth of Adidas.

Matt Powell explained this view in an interview with television media Fuse. He pointed out that Adidas has not given specific sales data for Kanye West series so far, and the influence of Yeezy series has been tied up by the limited number of products.

The article pointed out that after the first cooperation between Adidas and Kanye West, the first joint shoe Yeezy Boost 750 was released in February 2015, and the price for each pair was $350, with a limited sale of 9000 pairs.

Although the series was sold out rapidly within 1 hours after the sale, sales for adidas totaled only $3 million 150 thousand, even though the later Yeezy Boost 350 V2 expanded its production, and only 20000 pairs were sold in North America.

Adidas Yeezy 350 V2 Zebra Shanghai suspected scene of assault on sale

At the end of last month, Adidas Yeezy Boost 350 V2 Zebra was officially launched on second occasions in 36 outlets in 16 cities in the mainland.

Due to the limited product range, adidas has adopted the app appointment purchase form.

However, according to sources, the individual consumers at the iapm mall in Shanghai used the "technical" means to break through the official APP program by making use of the "more than 80" pairs of shoes. When they received shoes at the store, they caused other consumers' dissatisfaction, resulting in a brawl.

It is noteworthy that Adidas Originals originally planned to sell Yeezy Boost 350 V2 Dark Green, because the current production of shoes is only 600 pairs for the time being, and fails to meet the market needs, so Adidas Originals decided to sell Zebra as an alternative.

Extremes must be reversed. It is evident that Yeezy shoes have caused some negative effects on brands and even society under excessive hunger marketing.

Therefore, Matt Powell believes that the limited income of the Yeezy series will not have much impact on the overall sales volume of the group, and the excessive hunger marketing restricts the series's contribution to the brand performance.

He also stressed that it is extremely extreme and ridiculous to return the strength of Adidas to the so-called "kan Ye" effect.

According to the latest LADYMAX data, Adidas sales increased 18.9% in the first quarter of this year, 5 billion 670 million euros, and net profit rose nearly 30% to 455 million euros. In the first quarter of fiscal year 2015, Adidas sales increased 17% to 4 billion 769 million euros.

Matt Powell pointed out that without Boost, the Yeezy series could not save Adidas.

At the end of January 2015, Adidas started the Ultra Boost Series in New York. Whether it was the Yeezy series that was snatches or the NMD series released later, the best selling shoes were related to the soles technology of Boost.

It can be seen that the Boost midsole mitigation technology is the greatest hero of Adidas's stage victory.

In addition, Stan Smith and Superstar, which are popular with fashion consumers, are also one of the main reasons for Adidas's performance recovery.

However, on the other hand, it seems that the second-hand sports shoes resale market is the home of "kan Ye" effect.

Josh Luber, founder of sports shoes resale website StockX, said in an interview that it was the limited amount of explosion that made Adidas stronger in the secondary market.

According to the website's statistics, since the Adidas Yeezy series was launched in February 2015, the share of adidas has increased from 1% to 30% in the secondary market with a total value of $1 billion.

Alan Vinogradov, a member of the New York sports shoes Association SneakerCon, has observed that members of the association have been tilting towards Air from a pair of Air Jordan a couple of years ago. Now that the association is organizing events, the number of people wearing adidas has exceeded Nike.

Footwear News reported earlier that Adidas's Yeezy series greatly promoted the growth of the resale market.

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Last year, Adidas and Kanye West upgraded comprehensively, and plans to build new brand Kanye West+adidas.

For this controversy, Baird&Co. sports shoes analyst Jonathan Komp believes that the impact of Kanye West and Adidas launched Yeezy series on brand performance is hard to say from one point, but absolutely not without any impact.

Matt Powell also indicated in the end that in the long run, cooperation between Adidas and Kanye West is worthwhile.

In order to further expand the global expansion, Adidas and Kanye West reached an agreement in July last year to announce the establishment of a new brand Kanye West+adidas, with a planned investment of up to US $1 billion. This is the first time adidas has asked the brand design team to cooperate with Kanye West to carry out creative design and brand operation. The series will be divided into basketball and baseball, including shoes, accessories, clothing, and a series of products.

Up to now, Kanye West himself has not responded to this comment.

As the trend leader and the opinion leader of social networking media, every new trend of Kanye West is the trend vane. Kanye West Yeezy, when issuing new series of costumes, is sure to attract the attention of professionals and fans in fashion circles.

Prior to working with Adidas, Yeezy shoes first started in 2005 Air180 series of Nike West launched by Kayne West and Nike, and later refused to pay royalties due to Nike. Kayne West was pferred to Adidas in 2014.

However, after the release of Kanye West x adidas Originals 2015 autumn and winter series, some industry commentators said they could not understand such a design.

For all kinds of rumors and speculation, Anna Wintour, editor in chief of the US Edition of Vogue, supports Kanye West and responds: "in every historical period, there are people who plan out the culture of the times, stir up hot topics, and depict the whole world with their own existence and influence people who look at things.

Recording the wonderful stories of these people with camera and text is one of our pleasure as Vogue editors. This is also one of the long traditions rooted in this magazine.

I think we should all admit that Kim and Kanye have taken on this important role. "

The reason behind such a large discussion is the popularity of Kanye West and Kim Kardashian West, a rising social media fan, which is becoming increasingly powerful and overwhelming.

Analysis indicates that with the emergence of Instagram, Twitter and other social media platforms, the trend or fashion itself has changed.

According to Instagram data, the number of fans of Kanye West has exceeded 100 million.

Kanye West has said that if it were not for social media, he would not be so frequent in the public eye.

In addition to co operating with Nike, Adidas and other brands, Kanye West has also cooperated with Bape, Reebok, Jordan Brand and LV.

Rihanna has defeated Kanye West to become the most talked about designer in New York fashion week.

In the changing social media, the popularity of celebrities and celebrities is seen to be normal.

In 2014, Puma hired Rihanna as the creative director of the women's clothing series and the global ambassador of the brand, hoping to attract more consumers through the star effect of Rihanna.

At present, Rihanna has defeated Kanye West as the most talked about designer in New York fashion week, and Puma has become the most popular brand in New York fashion week.

According to the world clothing and shoe net, the number of Rihanna fans on Instagram is 54 million 430 thousand. Apart from its high popularity, the nepotism effect brought by her circle of friends can not be underestimated.

As one of the most popular celebrities today, Rihanna's friends are popular stars and fashion bloggers, including Gigi Hadid, Cara Delevingne and THE WEEKEND. With their support, the Fenty by Puma series has become an essential single item for fashion people, attracting the attention and love of many thousand generation of young consumers.

There is analysis that net red saved Puma.

Thanks to Rihanna's accession, Puma's performance has recovered rapidly and has attracted the attention of millennial consumers. Last year, net profit rose 68% to 62 million 400 thousand euros, and annual sales increased 7.1% to 3 billion 627 million euros.

Some analysts believe that at this stage, the millennial generation with potential consumption will be more willing to see the topic of cross-border joint names. Therefore, whether the Kanye West and Adidas or Rihanna and Puma, the joint market series based on market demand will continue in the short term.

The desire of young consumers to purchase trend products will continue to expand under the suppression of hunger marketing and limited policies.

As for the impact of Kanye West on Adidas, Kissane, an analyst, said that since the launch of Yeezy shoes, the Boost series is no longer simply a functional sports shoes. It is Kanye West that brings the fashionable characteristics of Boost, and will turn more fashionable consumers into fans of Boost series products. So far, the task of Kanye Kanye has been basically completed.

He emphasized that Adidas, which has both the professional and cool two products, is needed to find the next burst.

Jon Wexler, director of marketing at Adidas, said in an interview earlier that under the influence of social media, the sports shoes market is no longer what it used to be.

Previously, the brand had seasonality through cooperation with athletes, but in the entertainment industry, these stars could create news and topics for 24 hours, and Adidas happened to find Kanye West, who can pcend the region to promote the global pop culture. After all, the ultimate goal of Adidas is to influence global consumers.

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