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Reaching more female clients is a top priority for Adidas since 2015, the year of the announcement of the company's strategy that still guides it today. So, as now, sales to women accounted for a disproportionate share of all business activities – as is generally the case with leading sportswear brands, which have never designed or sold to women as much as they have men. For brands that can win them, women make up a lot of potential dollars.
That's why Adidas has teamed up with world-renowned superstar and singer Beyoncé, Kasper Rorsted's CEO said today in a call for results. The company's business has experienced strong growth, but it remains "a particularly strong opportunity for us because it is an under-represented part of our business … we are still not where we need to be," he said. he declares. "There is no doubt that Beyonce will help us in this area." The first limited products from this collaboration will come out later this year, he added.
The singer has a reach that few people in the world can match. On Instagram alone, it has 127 million followers. For comparison, the mega-star Rihanna has about 70 million. After announcing their partnership with Adidas, snapshots published on the social network have collectively attracted tens of millions of likes and hundreds of thousands of comments. At a time when pop stars seem to be more effective at selling athletic shoes than professional athletes, Beyoncé could have a noticeable effect on business sales to women, all the more so as they are more likely to be sold. Adidas has found in the past that influencers are a more effective way to reach women than athletes anyway.
This effect will not be felt in the net results of the company for a while. Rorsted suggested that they broaden the range slowly, as they had done in their partnership with rapper Kanye West. "In order to build this, we are talking about a range of three to five to seven years, and even though we will release the first products by the end of the year, the Beyoncé product will not have a substantial impact. [on revenue], Says Rorsted.
If Adidas follows the Yeezy range of rules developed with West, the company will likely launch smaller versions of products and then increase the volume of these older products as new publications become available. The idea is to preserve the scarcity and demand that drives the hype around new products, while being able to sell products that have exceeded their peak in the cycle of hype in sufficient quantities to actually increase the profits of the society. For example, after extending the distribution of an old pair of Yeezy sneakers last year, for example, Rorsted announced its withdrawal in 2019 and would market many new products in much smaller quantities.
The company, which announced in the initial partnership with Beyoncé that they would jointly launch shoes and clothes, would not offer more details about the products or the price of these products. He believes that the deal with Beyoncé will begin to yield benefits before the line itself begins to generate real income. "From the brand's point of view," said Rorsted, "this will strengthen our position with consumers."
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