German sportswear company Adidas has ended its partnership with American rapper Kanye West (AKA Yeezus, AKA Ye) following a string of hateful anti-Jewish remarks made by the rapper. The move is set to have a negative impact on Adidas’ net income of up to $246 million in 2022, due to the high seasonality of the fourth quarter. However, many are wondering whether or not this is the right move for Adidas, and if the company will be able to repair its image after partnering with such a controversial figure.
The History of Adidas
Adidas has a long and complicated history. The company was founded in 1924 by Adolf “Adi” Dassler, who originally started making shoes in his mother’s laundry room. Dassler was a member of the Nazi party, and used forced labor to produce shoes during World War II. In 1948, Dassler had a falling out with his brother Rudolf, and the two went their separate ways, with Rudolf going on to found Puma and Adi founding Adidas.
In the 1960s, Adidas became one of the most popular sportswear brands in the world, thanks in large part to its association with legendary athletes like Jesse Owens and Muhammad Ali. In recent years, Adidas has partnered with celebrities like Kanye West and Justin Bieber in an effort to appeal to younger consumers. However, these partnerships have not always been successful; for example, Justin Bieber’s line of sneakers was heavily criticized and resulted in disastrous sales.
The Impact of Social Media
In today’s world, it’s more important than ever for companies to be careful about who they partner with. Thanks to social media, any misstep can quickly become headline news and do serious damage to a company’s reputation. In the case of Adidas, many are wondering if partnering with Kanye West was worth the risk; while his musical talent is undeniable, his outspoken personality has made him a lightning rod for controversy.
It took Adidas nearly two weeks to respond to Kanye West’s antisemitic remarks; during that time, the hashtag #adidasIsOverParty trended on Twitter as users called for a boycott of the company. While some users praised Adidas for finally cutting ties with West, others criticized the company for not taking action sooner. For example, one user tweeted “It took them this long? We all knew what he was.”
What’s Next for Adidas?
Only time will tell what effect this decision will have on Adidas’ bottom line. While cutting ties with Kanye West is sure to have a negative financial impact in the short term, it remains to be seen whether or not this move will help or hurt the company in the long run. What is certain is that social media will continue to play a major role in shaping public opinion of corporations; moving forward, companies would be wise to think twice before partnering with any individual or group that might reflect poorly on their brand.
