ADIDAS DROPS THE COLLABORATION WITH YEEZY - WHAT HAPPENS NOW?

Kanye West, also known as Yeezy and Ye, has collaborated with Adidas since 2015 — a partnership that is now dead and buried.

What will this mean for Ye?

What will this mean for Adidas?

What will this mean for you as a customer?

In this blog post, you'll get insights on exactly these things.

Enjoy.

The reason the collaboration ended

At the end of 2022, Kanye was on Instagram.

A sentence that might not mean much to you and me, but when it’s Kanye, it’s a whole different story.

The rapper has had several episodes on Instagram with bold statements and public shaming.

Violent additions to the long list of beefs Kanye seems to collect.

But this round in October was particularly unfortunate. Ye made antisemitic remarks, which resulted in several major collaborations being cut off.

And finally, the legendary Adidas Yeezy collaboration.

Broken off on Adidas’ terms.

500 million USD in Yeezy shoes remain unsold

After the collaboration ended, Adidas is left with over 500 million USD in Yeezy-branded shoes.

What will happen to them?

Rumors say Adidas and Yeezy have made a deal to hand the shoes over to a third party who can sell them, but nothing is confirmed at the time of writing (early March 2023).

We can only wait and see.

What will happen to Yeezy?

Adidas promising cheaper Yeezy shoes will probably never happen. The collaboration is dead and buried.

Simply put, this means no more production of the popular models like Yeezy Slides, Yeezy Boost, and all the other iconic models.

We only have the Adidas Yeezy shoes already out there left. No more will come.

This can mean different things depending on which direction people take.

Will Yeezy prices rise?

Yeezy has always had a high price on the resale market. This will very likely continue.

Prices might even increase.

It’s actually a very simple rule.

The supply gets smaller and smaller, but demand remains the same. If we follow what usually happens to a product’s value, we can expect prices to rise more and more over time.

This will result in astronomical prices for Adidas Yeezy models. Regardless of what sneakers Kanye makes in the future.

The iconic sneakers have shaped the sneaker industry and pushed the boundaries of what you can do with sneakers.

All Yeezy models will over time become an important piece of sneaker history.

Will Yeezy prices fall?

Will there be cheaper Yeezy shoes?

It doesn’t seem like Yeezy prices will fall anytime soon.

So far, it has gone like this:

1. Adidas drops the collaboration.
2. Yeezy shoes remain expensive to get.

If prices suddenly dropped on Yeezy shoes, it would be a big surprise.

Kanye has said some wild things on social media, but it doesn’t seem like his fans and sneakerheads worldwide have much to say about it.

The rapper’s sneakers are still popular.

And honestly, we get it.

They will always be models that have pushed the sneaker industry, models that stand out in your wardrobe, and models that can go to any occasion.

We certainly aren’t putting our Yeezy Slides on the shelf anytime soon.

You can probably forget the idea of cheaper Yeezy now.

What will it mean for Kanye West?

Whether a big sneaker brand will collaborate with Ye in the future, only time will tell.

Right now, it seems unlikely that any brand would take on a collaboration.

It’s not just Adidas that has dropped the collaboration. Besides the German sportswear giant, the provocative high-fashion brand Balenciaga and the American Gap have cut ties with the rapper.

Collaborating with Ye is not easy. It’s no secret. And for that reason, it seems doubtful we’ll see a collab of Adidas Yeezy proportions again.

What will it mean for Adidas?

Adidas will survive. There’s no doubt about that.

The sportswear giant is not dependent on the revenue the Yeezy brand created, even though it is a lot of money they will lose.

In fact, they have reported that they will lose over 1 billion USD in annual revenue.

Luckily, the brand has many other well-known bestsellers shaping the market right now, such as Samba, Superstar, and Forum 84.

Additionally, over 2022 and 2023, Adidas has released models somewhat reminiscent of Yeezy models.

Among them the Adilette sandal, which quickly brings thoughts to Yeezy Slides.

One should remember that Adidas also had its name on the shoes. The brand has stated they can continue producing Yeezy designs at any time, as long as they are without Yeezy branding.

If they choose to do so, it will be without the same interest and hype, since Kanye’s name is not attached.

It will likely also create even more hype for the original “Yeezy era” Adidas shoes.

Conclusion

Yeezy sneakers are not going out of style anytime soon.

We still see strong demand, and if it hasn’t changed now, the chances are slim that it will actually happen.

What this means, as I see it, is that Yeezy shoes will increase in price over time.

The supply will get smaller as long as people choose to use their Yeezys, but demand remains high. Over time, this can result in sky-high prices, as we see with the iconic Turtle Dove model.

Adidas will not be harmed by the breakup. They lose some revenue, but no one can throw mud at the brand based on their decision to end the collaboration.

Ye will face challenges if he wants to set up a collaboration similar to what he had with Adidas.

What do you think will happen from here?

Thanks for reading.