How Will adidas Fix The $1.3 Billion Worth Yeezy Inventory?

Yeah, breakups suck. But for team adidas, it has cost them more than a billion! Recently, the new chief executive of Three-Stripes, Bjorn Gulden, revealed that adidas is unsure what to do with the leftover Yeezy shoes post parting ways with Ye! Now, How Will adidas Fix The $1.3 Billion Worth Yeezy Inventory?

What went wrong?

Since their first release in February 2015, the adidas YEEZY shoe line has become one of the most sought-after collections among sneaker enthusiasts. The adidas YEEZY was created by renowned rapper and designer Kanye West in association with adidas and had slowly curved a distinct sense of style in the sneak market.

What seemed like an unbreakable partnership came to an end in October when adidas was obliged to call off the agreement due to a strong outcry following the musician’s series of antisemitic comments.

How Will adidas Fix The $1.3 Billion Worth Yeezy Inventory?

The $1.3 billion in unsold footwear has become a complicated issue for the brand, according to Gulden, who took over as CEO in January after leaving the same role at Puma. He further states that the issues include losses and possible struggles for the brand to sustain itself.

Sales in China, its biggest market, dropped by more than 35% last year as the nation tightened its grip on Covid. Moreover, the company lost 59 million euros due to its decision to leave Russia following the invasion of Ukraine. Also, it is losing market share to competitors like Nike.

To keep or to destroy

While selling the stockpile may harm the company’s reputation, destroying it would be extremely costly for the company’s finances. At the same time, donating the shoes would be problematic, given their high market value.

According to Gulden, selling the stock to a third-party buyer is an alternative that is feasible but carries reputational hazards. With people advocating sending the shoes to Turkey or other countries where there are shortages of shoes or tragedies have occurred, he argues that the shoes are more than their physical worth; the brand and product line has set standards for the shoes.

Looking at the bright side

With all these speculations surrounding the brand, Gulden is hopeful for its coming year as he sees a ray of light at the end of the tunnel.

Bjorn Gulden believes that adidas have all the necessary components for success. Yet, they must return to our fundamentals, which include our product, customers, retail partners, and athletes.

Mr Gulden expressed optimism that partnerships with social media influencers and pop culture figures like Beyoncé and Pharrell Williams will pick up this year along with the company’s plans to develop its soccer, running, outdoor, and golf lines. They are the lifestyle shoes from the team, which already has a huge fan following and continues to appeal to a larger audience.

Team adidas is unsure what to do with the $1.3 Billion worth of Yeezy shoes post parting ways with Ye and is working on weighing their options and outcomes. Meanwhile, why don’t you check out some of the best-selling kicks by the team and complete your purchase from the best UK and European shops, only in our where to buy section! For more trending sneak news, follow us on our Facebook and Twitter handles.

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