Join Michael Barbaro and Megan Twohey on "The Daily" as they unravel the Adidas-Kanye West collaboration saga that shook the fashion and business worlds. Discover the genesis of the Yeezy Boost 350 phenomenon that arose when Adidas, once struggling in the athletic footwear market, aligned with Kanye West's grand fashion aspirations. Delve into the allure of celebrity influence and its revolutionary impact on fashion, underscored by high-profile events such as New York Fashion Week and the ensuing frenzied sold-out collections.
As the partnership flourished financially, the speakers dissect the balance Adidas sought between the profitable ties with West and the ethical dilemmas posed by his controversial behavior. Learn how Adidas's strategies, including a morals clause and internal management efforts, ultimately gave way to a breach of contract in response to societal backlash. Addressing a billion-dollar unsold inventory debacle and Kanye's fluctuating net worth, "The Daily" offers a nuanced look at the fallout, Adidas's accountability, and their respective paths forward in a post-collaboration landscape – a telling case of commerce entwined with celebrity and controversy.
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When Adidas was struggling in the athletic footwear market, it found a partner in Kanye West, who held aspirations to influence the fashion world. The collaboration birthed the Yeezy Boost 350, a sneaker that became a cultural phenomenon despite not being optimized for athletic performance. Kanye’s attention to detail brought about both innovations and challenges for Adidas.
The high-profile nature of the Yeezy brand was unmistakable during its debut at New York Fashion Week, attracting A-list celebrities and leading to sold-out collections. West's vision translated into high demand, exerting a palpable impact on accessible fashion and aesthetics.
As Adidas processed employee grievances over Kanye's volatile behavior, they still saw the lucrative partnership as an opportunity to be extended. The morals clause introduced in 2016 during contract renegotiations was meant to mitigate potential issues, but even with Kanye’s subsequent problematic public behavior, the clause was not invoked.
Adidas employed various strategies such as meditation apps and private communication channels to manage the stress associated with Kanye's erratic behavior, which included publicly endorsing Donald Trump and making controversial statements on slavery.
Kanye's anti-Semitic remarks and accusations of design misappropriation led to Adidas ending the partnership—a move that reacted to widespread societal backlash and was framed as a breach of contract. The aftermath saw Adidas bracing for its first financial downturn in years, and Kanye's net worth saw a substantial reduction.
Adidas faced a new predicament with a billion dollars’ worth of unsold Yeezy inventory remaining. The choice made by Adidas' new CEO to sell the stock revealed the tangled financial ties that persisted between Adidas and Kanye post-separation.
Journalists Michael Barbaro and Megan Twohey discussed the Adidas-Kanye partnership from two perspectives. One suggesting Adidas prioritized financial interests over holding Kanye accountable, while the other pointed to Adidas’s success in leveraging the celebrity’s fame.
Adidas was left to navigate its future without the profitable Kanye partnership. A sale of the remaining Yeezy inventory continued to yield financial returns for both parties, even after their collaboration had ended.
Following Twohey’s investigative piece, new discussions emerged about Adidas possibly refraining from selling the remaining Yeezy stock, potentially incurring a significant financial hit. Furthermore, the article expands to touch upon other significant news stories and ends with a traditional sign-off by Barbaro, concluding the intricate analysis of Adidas's and Kanye West's complex relationship.
1-Page Summary
When Adidas was trailing in the athletic footwear market, it found an ally in Kanye West, who was eager to expand his influence in fashion. The partnership, investigated by Megan Twohey, brought to light the utilization of insider knowledge and confidential Adidas documents, offering a comprehensive look at its challenges and achievements.
The collaboration led to the Yeezy Boost 350, a sneaker that not only became a cultural hit but also fostered Adidas's presence in the athleisure trend. West's specific vision, emphasizing aesthetics, materials, and accessible pricing, guided the collection's design, leading to products that sold out quickly and created intense demand.
Despite its success, the partnership faced early challenges, including Kanye's display of explicit material during meetings.
The high-profile nature of the Yeezy brand was unmistakabl ...
The Inception and Rise of the Adidas-Kanye Partnership
As Adidas processed employee grievances over Kanye's volatile behavior, they still saw the lucrative partnership as an opportunity to be extended. Despite Kanye insinuating that centuries of slavery could be perceived as a choice, sparking widespread outrage, Adidas did not resort to their morals clause to reprimand Kanye. This was surprising given the existence of the clause designed for such situations.
During the 2016 contract renegotiations, the morals clause was introduced with the intention to enable Adidas to sever ties should West's behavior prove detrimental. Meanwhile, West negotiated a lucrative agreement that ensured significant royalties, advance payments, and stock options, with performance-based conditions for extending the partnership potentially for a full decade. The sustained sales of Yeezy merchandise even after the end of the partnership continued to bolster Adidas' financial outlook for the year.
To manage the unpredictability stemming from Kanye's behavior, Adidas implemented measures such as assigning roles intermittently within the Yeezy division to reduce mental strain and provided meditation apps subscriptions. They also established a private communic ...
Treading the Tightrope: Business Decisions Amidst Controversy
Kanye's contentious public behavior, such as appearing with White Lives Matter apparel and making anti-Semitic statements, eventually led to Adidas ending the partnership, framed as a breach of contract in reaction to societal backlash.
This followed Kanye boasting on a podcast about being able to act anti-Semitically without repercussions from Adidas—an assertion that coincided with increasing condemnation from societal leaders and influencers.
The termination resulted in Adidas bracing for its first financial downturn in many years, while Kanye saw a reduction in his net worth.
Adidas faced a new predicament with over a billion dollars' worth of unsold Yeezy inventory. The new CEO's decision t ...
The Financial Aftermath of High-Stakes Collaboration
Journalists Michael Barbaro and Megan Twohey discussed the Adidas-Kanye partnership from two perspectives.
One suggesting Adidas prioritized financial interests over holding Kanye accountable, possibly shying away from confrontation to protect its monetary interests.
The other perspective hinted at Adidas's success in leveraging a high-profile celebrity's draw, capitalizing on Kanye's fame and continuing to benefit financially, even amidst controversy.
Following Megan Twohey's investigative piece, Adidas, under the new leadership of Bjorn Goulden, faced the dilemma of whether to sell the remaining Yeezy inventory or not, an action that could represent a substantial financial hit to the company. Despite the terminated business arrangement, the decision over the Yeezy stock sale highlighted the ongoing financial interrelation between Adidas and Kanye West.
Reflections and Reckoning: Analyzing the Fallout
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