German sportswear and footwear brand Adidas is facing an ethical, economic, and business dilemma caused by one person: Kanye West
Adidas is facing a huge crisis caused by one person: Kanye West. The company has severed ties with West, also known as ‘Ye’, following his statements made a few months ago. Fashion experts lend their two cents on this topic.
What did he say exactly?
Last October, the singer made anti-Semitic and hate speech remarks during the podcast ‘Drink Champs’, claiming that George Floyd died from a drug overdose instead of asphyxiation caused by the policeman Derek Chauvin. West also appeared at a fashion show in Paris wearing a ‘White Lives Matter’ T-shirt in response to the ‘Black Lives Matter’ anti-racist movement.
Subsequently, Adidas severed ties with West and his very popular Yeezy shoe brand.
The losses are around $1.27 billion in revenue this year and a total of $500.3 million in profit if the sneakers fail to sell.
” It serves as a grim reminder that the actions and words of one person can have far-reaching consequences for a business, even one as large and successful as Adidas. “
Adidas now faces the challenge of what to do with the unsold Yeezy sneakers, which cost between $200 and $600. Ideas such as rebranding the shoes, selling them at a discount, or renaming them as ‘Yeezy Zombies’ have been suggested. However, these proposals are considered “risky propositions” by economic analyst Tom Nikic, who notes that they would be “counterproductive from a public relations standpoint.” Such actions would still make it seem like Adidas is benefiting from a collaboration with someone who made blatant anti-Semitic statements.
Adidas is in a difficult position because of West’s actions, which have resulted in a loss of revenue and tarnished the brand’s reputation. It serves as a grim reminder that the actions and words of one person can have far-reaching consequences for a business, even one as large and successful as Adidas.
In conclusion, Adidas’s predicament should serve as a warning to other companies to be vigilant in their collaborations and to carefully consider the individuals they associate with. As for Adidas, it remains to be seen what they will do with the unsold Yeezy sneakers, but one thing is clear: they must act swiftly and decisively to protect their brand and reputation.
This is a very costly shit sandwich that Adidas will have to consume.