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Many sneaker fans and industry watchers speculated on Yeezy's health, the collaboration between Adidas and Kanye West.
Adidas CEO Kasper Rorsted does not seem worried. In a phone call with investors today (7 November), Rorsted said the brand was one of the highlights of Adidas' recent performance, saying it was one of the driving forces behind Adidas' e-commerce strong growth of 76% during the quarter. Overall, sales were up 8% year-over-year, although Adidas faced a decline in Western Europe (Paywall).
The Yeezy label recently asked questions to viewers who look from the outside. Over the three years of collaboration, almost all new styles were sold instantly. Out in limited quantities, up to a few tens of thousands of people, they caused stiff competition between people to get a pair and exorbitant prices on the resale market may exceed $ 1,000.
But in September, when Adidas and Yeezy, via their sites, released a much larger amount – supposedly a million pairs – of Yeezy Boost 350 in triple white at $ 220 each, the shoes remained available online for at least a week. When the next fall occurred, this time for Yeezy Boost 700 in purple, this shoe did not seem out of stock, too, before it was apparently removed from the sale. You can now buy it in the resale market at about the same price as retail. At least from the outside, Yeezy's glow faded.
Industry watchers guessed that increasing the volume of the 350 in triple white suddenly made it possible for many people to buy a Yeezy sneaker, removing the exclusivity of the brand and soothing the hype that had fueled its sales . Or that West's apparent alignment with the Republicans was a shock to his largely liberal supporters.
But Rorsted told CNBC Yeezy did not experience any absolute slowdown and told the investor that Yeezy 350's recent sales were above expectations. He called the fall online "perfect" in his execution.
The brand strategy for the Yeezy brand remains unchanged. "As we introduce new Yeezy products to the market, we will do what we have done in the past: create a scarcity around the new products we are launching, make sure we have the hype and, for a period given of course, drive volume on this market, "Rorsted explained during the call.When a product is on the market for several years, Adidas and Yeezy can then" democratize "it and start look for mass sales, as they had done with the Yeezy 350.
Adidas is attentive to the management of its successful franchises and understands the value of scarcity. The unanswered question is how the Yeezy label will behave in the long run, because its shoes, even if they are only older models, become easier to obtain. Sneakers and fashion are industries that often rely on exclusivity and hype. If Yeezy sneakers are readily available, it may make them less desirable.
As for politics, which west said Rorsted told Footwear News that Adidas supports what West does, but not all of his statements.
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