The Famous Coconut Shoe Yeezy Is Expected To Exceed US $1 Billion 300 Million This Year.

In the past five years, the famous sports rapper Kanye West ("kan Ye"), the brand Yeezy of sports shoes, has sprung up in the global sports shoes market.

The picture shows the transformation of YEEZY BOOST 350 V2.

At present, Yeezy's business is still under the cooperation of the German sports giant Adidas and belongs to the category of Adidas Originals. Last year, Adidas's CEO Kasper Rorsted hinted at the intention to further expand the scale of Yeezy's operation.

However, he also said that although Yeezy is undoubtedly essential for Adidas to strengthen its global position, it is more of a "halo effect". From a financial point of view, Yeezy has little impact on the overall financial performance of Adidas. But he also admitted that from the marketing point of view, Yeezy is an important asset of Adidas, including the brand fever caused by limited issuance and the way of resonating consumers. This spring, Kasper Rorsted announced that it will launch more than 20 new Yeezy shoes this year.

In fiscal year 2018, adidas Group's year-on-year net sales increased 3.3% to 21 billion 915 million euros. Although adidas has not disclosed the sales data of Yeezy alone, the New York Times recently quoted a source that the sales volume of Yeezy in 2019 is expected to exceed 1 billion 300 million dollars.

The source also revealed that Kanye West received a 5% dividend from the net sales of Yeezy (including footwear and clothing) every year (about $65 million). According to the "richest rap list of 2019" released by Forbes, Kanye West's net assets amounted to $240 million, ranking fourth in the list.

In fact, last year, Kanye West claimed that Yeezy was the second fastest growing company in history. It is already a unicorn and is becoming a "ten horned beast". And Yeezy is not satisfied with just being a popular sports shoes brand, Kanye West even put it, "Yeezy will become the largest clothing company in human history." (see "ornate ambition": "Kanye West" said: "my coconut shoes" Yeezy is already a unicorn company!) It will become the largest clothing company in history.

Since last year, Yeezy has been recruiting large numbers of troops and expanding its management team. The side confirms that Kanye West's rhetoric is not an open mind.

Adidas Mark King, former president of North America, once said that Kanye West regards herself as an artist (including design, music and Culture). His position on herself and his connection with Yeezy make the latter not only a sports brand, but also a brand focusing on creativity, sports and culture.

However, the ambition of Kanye West to surpass Michael Jordan has not yet been realized. From the sales point of view, there is a clear gap between Yeezy and the Jordan brand of Nike, a sports giant in the United States. Last year, Jordan's sales exceeded 2 billion 800 million dollars.

As a partner of Yeezy, adidas has also made brilliant progress in recent years. The market share of Adidas in the North American sports shoes market has jumped from 4% in 2015 to 11%, according to data from NPD Group, a market research firm.

In addition, over the past three years, Adidas's share price has more than doubled. From January 2, 2019 to June 26th, Adidas's share price rose 46.9% this year, much higher than that of Nike (Nike) of the same trade (11.46%).