Getting The Best Out of The Worst: How Adidas is Supercharging Sales of Yeezy Footwear.
According to Yahoo Finance, Adidas has brought in $437 million from the first sale of the Yeezy shoes. Part of the proceeds will be donated to support the groups fighting antisemitism and other hate.
Would you have thrown away such stock of shoes or dump it as a donation after parting ways from untimely terminated contract?
Adidas, the renowned sportswear manufacturer turned the story around after terminating their contract with Yeezy. The rapper who made his opinion on antisemitism issues sometime ago on social media and interviews.
Why Adidas cut ties with Kenye West.
As a business entity, protecting your corporate and brand image is a key to your present and future successes. Therefore, any act from contracted persons or organizations which raise alarm as a public issue is keenly treated.
And this is the major reason the contract between Adidas, the shoe manufacturer and Yeezy, owned by the American rapper who was formerly called Kenye West got divorced.
After dropping the court case, the sportswear manufacturer mentioned their intentions concerning the rest of Yeezy footwear in stock.
Many would have suggest that the footwear should directly donated to charitable and social organizations in a philanthropic gesture.
However, CEO Bjørn Gulden of Adidas thought differently. He announced in May, that the company would be selling a portion of the remaining inventory and might donate some to social organizations.
In June, the first batch of shoes was released, which sold out, helped the company reach an operating profit of 176 million euros in the second quarter, better than it originally planned, Adidas said Thursday. A second sale started Wednesday.
The maker of the sportswear said that the sales figures outweigh what was planned initially after their partnership ties were cut. The CEO said, “Of course also helping our cash flow and general financial strength.”
How Adidas is making the Best out of the Worst
Instead of running away from the issue at hand, Adidas embraced an innovative solution to tackle the problem. While looking at a stock of $10 billion footwear to be dumped, the company went the extra mile to initiate a good policy to clear the stock out of inventory.
Again, socially responsible companies forge their success beyond company’s profits and stockholders returns. Adidas found a way of providing support in addressing a social issue whiles they maximize their profits. By donating a portion of the proceeds to groups fighting antisemitism, customers trust are gained and the hopes of the victims are renewed for every purchase made.
Conclusion
The presence of public issue doesn’t always end a company’s image in a ditch. But another opportunity to explore and support uncharted territories. Facing problem and solving it by putting the interests of all stakeholders on par helps prepare the business for growth.
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