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NPD: Adidas' 'Yeezy' collaboration with Kanye West has not paid off

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G

Guevara

Member
Adidas reportedly paid Kanye West $10m (£7m) to collaborate on the limited-edition 'Yeezy' trainers, but the deal doesn't appear to have paid off.

Adidas signed West in 2013, with the Yeezy line intended to boost sales in the US, where it has been steadily losing ground to Nike and newer rival Under Armour.

Analysis of Adidas' results shows that the firm's revenues in the US have been dropping between 2011 and 2015.

In 2011, the firm's US sales stood at €3.1bn, falling to €2.97bn for the full year 2014.

Its performance in 2015 has been more positive on a quarter-by-quarter basis, with first quarter sales coming in at €591m, rising to €643m for the second quarter and again to $776m for the third quarter.

But that recent turnaround isn't down to the Kanye effect, according to NPD analyst Matt Powell.

"When I look at the data, the Adidas growth is not coming from any styles even vaguely associated with West," he told Marketing. "Sales have been negative most of the time since West's signing."
Click to expand...
Part of that is due to the line's limited availability.

According to Powell, there have been fewer than 50,000 pairs available to retailers. "We sell more than 300m pairs of sneakers in the US each year, so 50,000 is negligible," he said.

He added: "The sales of the shoe have not offset that [$10m] expense."

Powell points out that any halo effect from West should have kicked in much earlier, and that 2015's improving sales performance is down to Adidas' own hard graft.
Click to expand...

http://www.marketingmagazine.co.uk/...s-yeezy-collaboration-kanye-west-not-paid-off

Obviously being so limited, Adidas couldn't have expected the shoes alone to pay off. But interesting that there's no discernible halo-effect either.
 
F

FZZ

Banned
then release more shoes cause I'm pretty sure they would sell a lot more if they did

edit: it's an analyst not adidas, nevermind dude doesn't know how much people fiend over these shoes. resale of them are in the millions.
 
M

Mortemis

Banned
What the fuck did they think would happen when they don't make nearly enough?

Strange article, the analyst answered their own question on why they don't have an impact.
 
W

wenis

Registered for GAF on September 11, 2001.
If I could even find a pair from a retailer I'd fuckin' buy some. Shit.
 
K

Kwixotik

Member
FZZpure said:
then release more shoes cause I'm pretty sure they would sell a lot more if they did

edit: it's an analyst not adidas, nevermind dude doesn't know how much people fiend over these shoes. resale of them are in the millions.
Click to expand...

Doesn't matter if Adidas doesn't see that money and it doesn't lead consumers to buy other products under the Adidas brand
 
G

Guevara

Member
Mortemis said:
What the fuck did they think would happen when they don't make nearly enough?
Click to expand...

They thought they'd get a "halo-effect":

People would buy other Adidas shoes because Adidas would have a cooler image. Adidas is happy to sell you all the tubulars you want, just not the Yeezys.
 
R

Rootbeer

Banned
... where it has been steadily losing ground to Nike and newer rival Under Armour.
Click to expand...

Yeah I notice Under Armor has really exploded but I'm curious as to why? Apart from it being just a good product, but that's usually not enough to cause so much growth.

Why have they gotten so big lately?
 
H

Hasphat'sAnts

Member
Its performance in 2015 has been more positive on a quarter-by-quarter basis, with first quarter sales coming in at €591m, rising to €643m for the second quarter and again to $776m for the third quarter.
Click to expand...

NPD burying the lede as usual

I guess that should all be dollar signs.

cbrun44 said:
People don't want Adidas. The want Yeezys. Sell more Yeezys!
Click to expand...

Ultra Boosts are also super popular.
 
V

Visualante2

Member
Adidas skateboard division doesn't really feel that skateboard focused to me. They have some big names, like Gonz but the shoe styles just look like they're regular Adidas shoes with a skateboarder's name put on it. Nike skateboarding got a lot of criticism for going more mainstream, and leaving skater owned shops behind but it's good for the wider business and the shoes actually seem well received.

Adidas collaborations rarely excite me.
 
M

Mortemis

Banned
Guevara said:
They thought they'd get a "halo-effect":

People would buy other Adidas shoes because Adidas would have a cooler image.
Click to expand...

That makes sense, as in why they think it's not working, but doesn't make sense to me.

I doubt people who are interested in Yeezys would care about adidas, they'd probably go and buy a pair of roshes that look similar.
 
F

FZZ

Banned
Kwixotik said:
Doesn't matter if Adidas doesn't see that money and it doesn't lead consumers to buy other products under the Adidas brand
Click to expand...

Nah not that, but everyone is FIENDING after these shoes

at the very least the collaboration has led to adidas having more eyes on them than before, these are on the levels of Jays right now in terms of release hype when they come out
 
F

friskykillface

Banned
Check out the contracts for nba stars , adidas spent to much on rose , lillard and other flops, lol John wall

I'd buy Kanye shoes if they didn't make so few :/
Limited is so dumb
 
I

idlewild_

Member
Zulithe said:
Yeah I notice Under Armor has really exploded but I'm curious as to why? Apart from it being just a good product, but that's usually not enough to cause so much growth.

Why have they gotten so big lately?
Click to expand...

I imagine part of it is Steph Curry blowing up the past two years, they signed him for cheap back in 2013
 
H

Hasphat'sAnts

Member
The analyst says the growth doesn't come from products associated with Kanye.

Why not tell us what they are and we can decide for ourselves whether that's true or not? Bad analysis is bad.
 
B

B!TCH

how are you, B!TCH? How is your day going, B!ITCH?
Hypebeast/Sneakerhead culture is just the worst. Everything about it is exploitive.
 
F

FZZ

Banned
methodman said:
it's 100% about steph. nike fucked up
Click to expand...

Adidas should honestly capitalize and get Steph Curry wearing Yeezys and truly make them the next Jays by having a sports line for Yeezys along with the 350s and 750s

Steph Curry is only gonna be getting bigger
 
T

The Driver

Member
They need to make more. Way more. Just got done battling for the pirate black rerelease and ultimately took the L after spending a hour + on the site. Had them in my cart and everything but it died on checkout. These things are stupidly hyped and the site was getting HAMMERED.

Yeezy needs to stop the sneaker game artificial demand BS and keep his word that everyone who wants Yeezys will get them.
 
F

Fixed2BeBroken

Member
The problem is Adidas isn't doing it right.


They only release Limited versions of the Yeezys and THATS IT. thats why they are failing.

What Nike does, is Release limited rare versions of a particular sneaker style like the Galaxy Foams, and build up hype for that style that way, then Release a more generic General release version of that same style (So like some black and gold foams)....so people who didn't cop the "rare version" end up settling for the more generic one.

you can't do that with yeezys. Its just limited only. Maybe if they would release limited styles then a general release of a more generic style, then they'd see increases sales because of yeezy, otherwise, they can't really blame yeezy at all. their strategy is off.
 
E

enzo_gt

tagged by Blackace
Fixed2BeBroken said:
The problem is Adidas isn't doing it right.


They only release Limited versions of the Yeezys and THATS IT. thats why they are failing.

What Nike does, is Release limited rare versions of a particular sneaker style like the Galaxy Foams, and build up hype for that style that way, then Release a more generic General release version of that same style (So like some black and gold foams)....so people who didn't cop the "rare version" end up settling for the more generic one.

you can't do that with yeezys. Its just limited only. Maybe if they would release limited styles then a general release of a more generic style, then they'd see increases sales because of yeezy, otherwise, they can't really blame yeezy at all. their strategy is off.
Click to expand...
Yep, you can have more than one line without compromising exclusivity or manipulating the scarcity effect.

We've known prices are gonna go down, but not nearly fast enough. They're just leaving money on the table, and on eBay.
 
J

Junior Mint

Member
Maybe stop artificially limiting supplies then? I bet resellers have probably made more money in total than Adidas has themselves lol
 
E

Empty

Member
they could have paid off it's just that other unrelated parts of the business are doing even worse so it's hidden, i.e if they didn't do this they'd see a greater revenue drop. besides the yeezy stuff with the limited availability is largely just marketing like them sponsoring messi, it's harder to see directly on the balance sheet. i think these two points contradict eachother and they might well be a flop, just don't know how you can tell unless you have the internal adidas numbers.
 
A

Anth0ny

Member
Zulithe said:
Yeah I notice Under Armor has really exploded but I'm curious as to why? Apart from it being just a good product, but that's usually not enough to cause so much growth.

Why have they gotten so big lately?
Click to expand...

they signed a deal with the best basketball player in the world

nike done goofed







as for the yeezys, either increase the price or fucking release more if you want them to pay off. it's not difficult.
 
B

blakep267

Member
I think Adidas also needs to get more buzz out there ads/ banner ads etc.

Like the new tubular models they have are pretty cool, especially the Dooms( like a low cost version of the qasa). But I didn't even know they had dropped like last month or so. They did a showcase last summer showing them then I never heard a word about them
 
T

ThoughtsOfSpeaking

Banned
problem with tubulars is they look awful with anything apart from joggers and skinny jeans. They are designed to show your ankles.

Ive got 3 pairs and they are all gathering dust.

My neo boosts however, are the nicest kicks ive ever worn comfort wise. They need to continue that line.
 
Y

Yurikerr

This post isn't by me, it's by a guy with the same username as me.
As someone who isn't from US, I didn't even knew about this Yeezy shoes.

Normally Adidas is better in selling this special editions shoes in other markets, but it seems like they are not even trying this time.
 
A

Anth0ny

Member
do a fucking crazy limited release of these to build hype:

this-is-what-a-e2809c41qbj.png


then mass produce these:

rDSbgwm.jpg




It's not that difficult. Even Jordan releases decently easy to find pairs of highly coveted shoes, like the 1s or XIs. But if you want the Breds? Or Space Jams? Or Concords? Good fucking luck. Those releases create the excitement, and when you strike out, people settle for what's available.

That's the problem with Yeezys. When you strike out, there's NOTHING available. People aren't just going to buy a shitty pair of Adidas. They want Yeezys.
 
B

blakep267

Member
Anth0ny said:
do a fucking crazy limited release of these to build hype:

this-is-what-a-e2809c41qbj.png


then mass produce these:

rDSbgwm.jpg




It's not that difficult. Even Jordan releases decently easy to find pairs of highly coveted shoes, like the 1s or XIs. But if you want the Breds? Or Space Jams? Or Concords? Good fucking luck. Those releases create the excitement, and when you strike out, people settle for what's available.

That's the problem with Yeezys. When you strike out, there's NOTHING available. People aren't just going to buy a shitty pair of Adidas. They want Yeezys.
Click to expand...
yeah. Like unless they stipulated with him that they would only release the shoes in such small quantities, there's no reason that at least the grey boosts weren't more widely available.

It's at the point where I don't really care about Yeezys because I'm not going through the trouble of getting them( well actually that's always been the case since Nike)
 
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