Why Doesn’T Adidas Sell Yeezy?

Michael Weinstein

Entrepreneur

Michael Weinstein is a seasoned writer and a dedicated expert in work safety, footwear, and popular shoe brands. With years of research and expertise, he's...Read more

Michael Weinstein

Entrepreneur

Michael Weinstein is a seasoned writer and a dedicated expert in work safety, footwear, and popular shoe brands. With years of research and expertise, he's...Read more

Why doesn’t Adidas sell Yeezy? It’s a question that sneakerheads and fashion enthusiasts have been asking for years.

Adidas, known for its iconic three stripes, has a wide range of popular footwear and apparel. But when it comes to Yeezy, the brand seems to have taken a different approach.

In this article, we’ll dig into the reasons behind Adidas’ decision and explore the factors that have contributed to the exclusivity and demand of Yeezy sneakers.

Why is Adidas not selling Yeezy?

Adidas made the decision to stop selling Yeezy shoes due to the series of antisemitic comments made by the rapper formerly known as Kanye West. These comments had a significant impact on the company’s first quarter sales, leading to a loss of approximately $440 million. It was a necessary step for Adidas to distance itself from the offensive remarks made by the artist.

The Yeezy line, which was a highly profitable partnership between Adidas and Kanye West, came to an end in October as a result of the controversy. Adidas recognized the importance of taking a stand against any form of discrimination or hate speech, and terminating the Yeezy collaboration was a way to demonstrate their commitment to these values. However, this decision also came at a financial cost for the company, with the loss of the popular and lucrative Yeezy brand impacting their first quarter sales.

Adidas’ decision to stop selling Yeezy shoes shows the company’s commitment to ensuring that its partnerships align with its values. By ending the collaboration with Kanye West, who made antisemitic comments, Adidas sent a clear message that it does not condone hate speech or discrimination. The financial impact of this decision demonstrates the significance of the Yeezy line for Adidas, highlighting the challenges they faced in finding a balance between upholding their values and maintaining profitability.

Why Doesn’t Adidas Sell Yeezy?

Adidas is a global sportswear brand that has a reputation for producing innovative and trendy footwear. The Yeezy line, created in collaboration with rapper Kanye West, has become extremely popular and highly sought after since its inception. However, despite the immense demand for Yeezy sneakers, Adidas has chosen to limit the availability of these shoes, leaving many people wondering why they don’t sell Yeezy more widely. In this article, we will explore the reasons behind Adidas’ decision and shed light on the factors that have contributed to the exclusivity of Yeezy sneakers.

The Collaboration that Transformed Sneaker Culture

Since its introduction in 2015, the Adidas Yeezy line has revolutionized the sneaker industry. Collaborating with Kanye West, one of the most influential figures in both music and fashion, Adidas managed to create a sneaker brand that transcended boundaries and captivated sneakerheads and enthusiasts alike. The Yeezy line brought together unique design elements, high-quality materials, and limited availability, fueling a sense of exclusivity and desirability.

Despite the success of the Yeezy line, Adidas has deliberately chosen to keep the sneakers in limited supply. This decision has created an unparalleled demand for Yeezy sneakers, resulting in long waiting lists, high resale prices, and a sense of urgency among consumers. By carefully controlling the quantity of Yeezy sneakers released, Adidas has managed to create a highly coveted brand that continues to stir up excitement and anticipation with each new release.

The Power of Scarcity

One of the main reasons why Adidas doesn’t sell Yeezy sneakers in mass quantities is the power of scarcity. By deliberately limiting the supply, Adidas has created a situation where demand consistently outstrips supply. This scarcity has resulted in a fervent desire among consumers to own a pair of Yeezys, which has translated into a significant increase in their perceived value. The limited availability of Yeezy sneakers has also given rise to a culture of exclusivity, making them highly sought after and a status symbol among sneaker enthusiasts.

Adidas has recognized the impact that scarcity has on consumer behavior and has strategically used it to their advantage. By creating a sense of urgency and exclusivity, the brand has managed to build hype around each new Yeezy release. The limited quantity of Yeezy sneakers ensures their desirability and helps maintain the brand’s image as a premium and high-end offering. This approach has also helped Adidas establish Yeezy as a collector’s item, with enthusiasts eagerly awaiting each new drop.

Furthermore, the scarcity of Yeezy sneakers has allowed Adidas to maintain a level of control over their brand and retail strategy. By positioning Yeezys as highly exclusive products, they have established their brand as one that is synonymous with style, innovation, and rarity. This strategy not only boosts sales but also helps differentiate Adidas from its competitors in a market saturated with sneaker options.

The Role of Collaboration and Brand Identity

Collaborating with Kanye West for the Yeezy line has not only resulted in unique and innovative designs but has also helped Adidas establish a distinct brand identity. The partnership has created a powerful association between the Yeezy sneakers and the persona of Kanye West, known for his influence and trend-setting capabilities. This connection has driven a significant portion of the demand for Yeezy sneakers and contributed to their cult-like following.

However, the collaboration with Kanye West also brings certain challenges. Kanye is known for his outspoken nature and controversial statements, which can sometimes generate negative publicity. Adidas, as a global brand, must carefully manage its image and reputation. By limiting the availability of Yeezy sneakers and maintaining creative control over the design and release strategy, Adidas can mitigate potential risks associated with Kanye’s actions and align the brand with a more discerning and exclusive audience.

Adidas has also recognized the importance of building sustainable and long-term relationships with its partners. By keeping the Yeezy line relatively exclusive, Adidas ensures that the collaboration with Kanye West remains a prized and mutually beneficial partnership. The limited availability of Yeezy sneakers helps preserve the excitement and anticipation surrounding each release and allows Adidas to maintain the brand’s allure as a premium and highly coveted product.

The Role of Reseller Market and Secondary Value

One of the unintended consequences of limited supply is the thriving reseller market for Yeezy sneakers. Due to their scarcity, Yeezy sneakers often sell out quickly upon release, leading to high demand in the secondary market. Resellers take advantage of this demand by purchasing Yeezys at retail prices and selling them at marked-up prices, sometimes at significant premiums.

While Adidas does not directly benefit from the inflated prices in the reseller market, it indirectly contributes to the allure and perceived value of Yeezy sneakers. The presence of a vibrant reseller market reinforces the exclusivity of Yeezys and adds to their desirability. It creates a sense of competition among consumers and stimulates the hype around each new release. This phenomenon also generates a continuous buzz and keeps the Yeezy line in the spotlight, further solidifying its status as a highly coveted product.

Additionally, the secondary value of Yeezy sneakers has become a key factor in their appeal. Many consumers view Yeezys as an investment, knowing that their value is likely to appreciate over time. The limited supply ensures that Yeezys become even more valuable as time goes on, creating a sense of urgency among collectors and enthusiasts to acquire them before their prices skyrocket. This dynamic has only intensified the demand for Yeezy sneakers, making them a sought-after commodity in both the primary retail market and the secondary reseller market.

In Summary

Adidas’ decision to limit the availability of Yeezy sneakers has been a deliberate strategy to create desirability, exclusivity, and maintain control over their brand. By leveraging scarcity, collaborating with an influential figure like Kanye West, and allowing a thriving reseller market to emerge, Adidas has managed to build a sneaker brand that has become a cultural phenomenon. Despite the curiosity and questions surrounding why Adidas doesn’t sell Yeezy in larger quantities, the brand’s approach has proven to be highly successful and has solidified Yeezy’s position as one of the most coveted and sought-after sneaker lines in the world.

Frequently Asked Questions

Why has Adidas stopped selling Yeezy shoes?

Adidas made the decision to discontinue the sale of Yeezy shoes due to their terminated partnership with the artist Kanye West, who is also known as Ye. This decision came after Kanye West made a series of comments that were deemed as antisemitic. The termination of this highly profitable line has had a significant impact on Adidas, leading to a decrease in sales of approximately $440 million in the first quarter.

How much is Adidas worth without Yeezy?

According to estimates made by Adidas in February, the decision not to sell the remaining Yeezy merchandise would have a significant impact on the company’s financials. It was projected that this choice would result in a decrease of $1.33 billion in revenue and a reduction of $554 million in operating profit for the shoe-maker. This estimation sheds light on the significant value that Yeezy holds for Adidas, highlighting the brand’s contribution to the company’s overall worth. Without Yeezy, Adidas’s financial standing would be affected, underscoring the significance of this collaboration to the company’s success.

What will Adidas do with remaining Yeezys?

Adidas has made an impactful decision regarding the remaining Yeezys in its inventory valued at $1.28 billion. Earlier this year, the company revealed its plans to sell these remaining Yeezys and allocate a substantial portion of the sales to organizations actively fighting against racism and antisemitism. By doing so, Adidas aims to contribute significantly to the ongoing battle against these social issues, ensuring that the funds generated from these sales make a real difference in combating discrimination and fostering equality. This thoughtful initiative showcases Adidas’ commitment to leverage its platform and resources for positive social change.

Is Adidas losing money from Yeezy?

According to Adidas, the potential impact of a write-off of Yeezy stock has decreased to 400 million euros, which is lower than the earlier expectation of 500 million euros. While the company did not disclose the exact quantity of Yeezy stock sold, which is valued at approximately 1.2 billion euros, analysts estimate that around 15% of the stock has been liquidated. This suggests that Adidas may be experiencing some financial losses from Yeezy, but the extent of the impact is unclear without precise figures.

Summary

So, why doesn’t Adidas sell Yeezy? Well, it turns out that there are a few reasons. One big reason is that the Yeezy brand is designed to be exclusive and limited, which makes them more valuable. Adidas also wants to maintain the high demand for Yeezy, so they carefully control the supply. Additionally, selling Yeezy in limited quantities helps create a sense of hype and excitement around the brand. So, while it may be frustrating for fans who can’t get their hands on a pair of Yeezy, these strategies actually help keep the Yeezy brand popular and valuable.