Speculation: Announcing The Election For President Of The United States, 10 Billion Of The Business Empire Behind Kan.

At the age of 43, Kanye West finally played.

He created the world's best-selling shoes and sold YEEZY shoes around the earth several times. Time magazine chose him as the most influential 100. "Iron Man" Musk got inspiration from his songs. He is still the husband of Kardashian, who is called "kan Kan".

In July 5th, Mr. Kan released a message on the social platform, announcing that he will run for president of the United States.

Instant news fermented, "rap the first person to rule the country", "give everyone a pair of coconut shoes"...... There is a hot wave on the Internet, which shows the label and heat of Kan himself.

From the gambling website oddschecker, it was found that the odds of Mr Kan's election rose to 50/1, after which it was 501/1, indicating that Gambling company's recognition of Kan became president.

According to combing, the presidential election needs to raise funds from 7 million to 1000 dollars in addition to the threshold of age and place of birth. From a capital point of view, the campaign needs to invest a lot of money, but it is not difficult to achieve for nearly ten billion business empire.

But according to foreign media reports, Mr. Kan did not submit a presidential candidate application document to the Federal Electoral Commission. There is no indication that the Kan family has set up an election organization. There are only 122 days left from the general election in November 3rd.

No matter whether the election can be landed or not, from the current heat, Kan has made a marketing for himself. From announcing cooperation with GAP to planning YEEZY to launch a beauty product line, Kan's business moves may be the biggest beneficiaries of this campaign.

From debt to value nearly 10 billion

From singing to business, Mr. Kan is quite serious. This also includes his understanding of wealth: when he finds out that Forbes's latest global billionaire list does not have his name, he has a bit of a grudge.

In April of this year, Mr. Kan ordered his team to provide the real financial report of Forbes, Kanye, Inc to his company. The team of Forbes really came over. After accounting, he announced that he was a hundred million billionaire.

This is the first full disclosure of Mr. Kan's business data and the unveiling of his commercial empire. He also carried 50 million debts in 2015, and achieved a counterattack by YEEZY. According to Bloomberg data, the YEEZY brand is valued at about $3 billion.

In recent years, the YEEZY in the field of fire has come from him. 15 years ago, Mr. Kan's partner was Nike. He also worked with brands such as Reebok and LV. However, he didn't have a chance to go public. Until 2013, Nike launched the "red coconut" shoes fire, YEEZY also began to "break the circle."

In the same year, Mr. Kan and Nike split up. One of the important reasons was that he hoped to have a cooperative stake, but Nike refused because he was not an athlete.

In 2015, Mr. Kan took the lead in Adidas, which officially opened the highlight of YEEZY. According to the agreement between the two sides, he can get a royalty rate of about 15% of YEEZY from Adidas. After deducting some fees, he can still get 11%.

According to the recent dialogue between Forbes magazine and Mr. Kan and internal documents, the final income of YEEZY Series in 2019 was close to US $1 billion 300 million. In this way, he earned more than 140 million dollars in YEEZY last year.

Of course, this is not enough to sustain his $1 billion 300 million worth (about 9 billion yuan).

According to the documents provided by Forbes to Mr. Kan, his main assets include 100% of the brand YEEZY, 90 million of the record companies and the copyright of the music, 81 million of the real estate, 21 million of the land, and 17 million of the cash.

The turning point of YEEZY shoes has arrived.

In 2014, Adidas was desolate, and its share price fell 38% in the whole year, with a huge loss of 140 million euros in the fourth quarter. In the North American market, Adidas was in third place by Andrea. Since 2015, the situation has changed. From less than 60 euros in early 2015 to 170 euros at the end of 2017, Adidas's share price has achieved a leap in these 3 years. At the beginning of 2015, it was the time of sale of the first YEEZY Boost shoes.

In the past two years, Adidas has taken a lot of attention from its old rival Nike, relying on the great heat of YEEZY, NMD and Boost series, and has made a strong counterattack. Judging from the current performance, the cooperation between Mr. Kan and Adidas has brought both sides to fame and fortune.

However, YEEZY declined after its peak in 2018, which has become Adidas's "invisible bomb". Consumption growth is slowing down, consumers are ridiculing sneakers for color palette, shoe fatigue, continuous replenishment, and reducing market premiums. This can not help but rethink, how long can YEEZY and Empire built by Adidas and Mr. Kan continue?

A pair of sneakers do not fire. The trading platform for sports shoes has always been the vane of the sports shoes market.

Data from StockX, the world's largest footwear trading platform, show that nearly 15 thousand styles have generated transactions, trading volume of more than 4 million pairs, trading volume of more than $1 billion, and paying an average premium of 44%. The whole transaction market is basically the mutual PK between YEEZY and JORDAN's two brands.

The average transaction price of Adidas is the highest, which is 292 US dollars, which is related to the pricing of YEEZY. The overall premium rate of the brand is only 36%, and the average Jordan price of the old rival Jordan is 260 dollars, and the premium rate is as high as 61%.

Take the 3 pairs of shoes with Jordan dark brown, Sacai x Nike red and YEEZY 350 luminous green as an example, they all rank among the highest premium shoes in May 2019. "E-commerce online" carding found that, after more than 1 years, Jordan inverted dark brown from the average transaction price rose to 6884, 9400, Sacai from the average price of 2965 to 4200, YEEZY still maintained at 3928 of the average price.

From the perspective of investment, the premium rate of sports shoes is almost positively related to its popularity. To put it bluntly, how popular is the primary market, and the premium rate in the two tier market is also high.

"The frequent replenishment of coconuts really makes the people of the fried shoes heartache. Whatever he really wants, his strategy is to hope that the coconut can be worn by the public." Sneaker player Gu Gu told "online business".

All of these indicate that the coconut Empire, which is built by Mr. Kan, is entering an important turning point. This business can no longer become the object of his single bet. It is also the inevitable result of his pursuit of equal rights.

Artist's KOL

But Mr. Kan's commercial influence is far more than YEEZY.

When he was trapped in the tens of millions of dollars in debt crisis, he made a long string of Twitter begging Zuckerberg. He wanted Zuckerberg to invest $1 billion in his creativity because he was the greatest artist in the world and in history.

Although the positioning is somewhat exaggerated, Kan and his designer empire can indeed occupy half of the fashion circle.

As early as 2011, Mr. Kan established Donda 'S HOUSE INC. This creative studio aims to create products and experiences that people want and affordable, and has recruited Virgil Abloh, Samuel Ross, Heron Preston and Matthew Williams to become members of the creative team.

These names look very complicated and unfamiliar, but the brand they design is very famous. For example, Virgil Abloh is the founder and principal of OFF WHITE brand, and also the creative director of LV's menswear; Matthew M Williams is the creative director of Givenchy.

Although these designers join Donda, they aim to launch high-end design products that the public can afford, but they do not prevent them from creating "hunger" in the market, so that the market prices of these design brands continue to grow.

Since its inception in 2012, OFF-WHITE has launched a joint venture with Moncler, Jimmy Choo and other brands, and has doubled its sales by 5000 times, with sales reaching 300 million euros.

Although there is no public information, it can explain what kind of commercial division exists between Kan and these "disciples", but the designer Empire they built together can sufficiently endorse the commercial brand of each other.

Election's ulterior motives

Recently, Mr. Kan, who has been doing a lot of action, has proved the widening of his business boundaries.

Kardashian family successfully transformed into cosmetic business. As a family member, he also wanted to share a cup of cake. In April of this year, he applied for the beauty shop of his YEEZY brand, covering all kinds of beauty and skin care products, including false eyelashes, facial mask, nail polish and perfume, and even toothpaste and aromatherapy pillow.

The bigger move is the recent announcement of his collaboration with GAP.

In 2019, GAP's total revenue in the world was US $4 billion 600 million. In this cooperation, GAP hopes that the new YEEZY GAP series can achieve annual sales target of US $1 billion per year, so we can see that GAP has high hopes for this cooperation.

After joint news, GAP's share price rose by 42%, showing the positive attitude of the market to this cooperation.

For GAP, Mr. Kan's accession is undoubtedly a timely relief. GAP, which is facing the pressure behind the epidemic, has been criticized for many years.

For this cooperation, GAP also made a lot of money. The two sides have signed a 10 year contract and can renew it in 5 years. Before the arrival of the five year extension, he will have full creative control and full ownership of YEEZY brand.

For Mr. Kan, the next move into the fast fashion field seems to be inconsistent with his past high-end design products. But in fact, he doesn't want his products to be like luxury goods. He wins by "scarcity", "exclusiveness", "high price" and hunger marketing. He told the media that he wanted to go on the route of mass production of high quality products, such as McDonald's or Apple Corp.

This is indeed consistent with his consistent insistence, whether in the Donda period or in YEEZY shoes, he insisted on "Popularization" and insisted on equal rights, so that ordinary people could also enjoy it. And this strategy, like musk's car making strategy, starts from the most expensive car and gradually becomes a popular vehicle.

No wonder Mr. Kan's presidential campaign, Mask is the most supportive person.