Adidas Might Suffer $500 Million Loss Because of Kanye West as it Plans to Burn Unsold Yeezys
Ever since Adidas dropped Kanye West, the brand seems to be going toward a huge loss financially. The rapper’s unpopularity due to his problematic opinions would make people hesitant to buy the Adidas x Yeezy pairs. And this is one of the biggest issues that the German brand has been facing these days.
Despite there being various alternative steps, on the whole, a big loss is inevitable as far as the prediction goes. And reportedly the brand is about to lose hundreds of millions of dollars. Whether it be repurposing, selling, or burning all of it comes with some amount of loss. Not only that but the sports apparel brand is reported to incur a loss of a billion this year.
Adidas Might Lose 500 Million Dollars Due to Kanye West’s Unsold Yeezys
In a different setting, Adidas could have easily sold its Yeezy collaboration shoes despite cutting ties with Kanye West or Ye. However, West’s infamous habit of posting problematic opinions makes it an almost impossible task. Various alternative steps have been put forward to tackle the situation of what could be done with the leftover Adidas X Yeezy products. Some type of loss seems to be everywhere for the Sports Apparel brand.
Amid all this, if the German brand decides to simply get rid of the collection by simply burning them up analysts estimate the loss would be around 3-5 hundred million dollars. Even if this step is not carried out, according to the Financial Times, the brand will still incur a loss of around 1.3 billion dollars.
What Other Alternatives Are There for Adidas?
Unsurprisingly, with so many unsold Yeezy collaborated shoes, people at Adidas are racking their brains on what the next step is. That is, what should the brand do with the leftover products? Following are several alternatives if the shoes cannot simply be sold. One is to sell them at a discount price in some other part of the world where West’s association might not have any bearings won’t the choice. Another is to repurpose the shoes. But that would require a huge investment which no one is looking forward to.
Yet another is to simply burn the whole thing in piles. That would also be a huge loss of around 500 million dollars. Again, no brand would want that kind of loss. The whole problem is mostly due to the abruptness at which the decision took place. As the brand did not get enough time to prepare itself for such a situation. And as of now, the German brand is estimated to lose millions.
Source: Financial Times
