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When Beyoncé partnered with adidas in 2019, everyone was excited.
The first Ivy Park x adidas drop was a hit, everyone wanted to get their hands on it.
Unfortunately, only the elite could afford it. However, celebrities didn’t have to pay a cent because the singer was giving them freebies.
After a three-year unsuccessful deal, both brands have decided to part ways.
This comes after adidas realised they were working at a loss. Their revenue dropped drastically in 2022.
Forbes reports that sales for Ivy Park in 2021 were $93 million, and in 2022 revenue was $40m compared to the $250m projected by adidas.
Adidas has been making bad business decisions, including cutting ties with Kanye West, which also hit hard on their pockets.
They really need to come up with a wise plan to accumulate the money they’ve lost.
“Adidas has all the ingredients to be successful, but we need to put our focus back on our core: product, consumers, retail partners, and athletes,” said adidas CEO Bjørn Gulden on its earnings call at the beginning of March.
While the decision to cut business ties with West was controversial, Beyoncé’s Ivy Park was bound to be a flop.
First of all, the items were overpriced. Yes, the singer does have a huge fan base, but the Beyhive wouldn’t pay so much for clothes that will be out of style the next season. If there’s one thing they’re willing to spurge on is watching her perform.
Instead of selling the garments to her celebrity friends (who have money) she decided to give them for free, wrong move.
Those people are rich, they wouldn’t mind paying for clothes they don’t need to support her. But she decided otherwise. Nonetheless, at least she secured the bag because adidas pays her $20m (R363m) annually, and the contract was expiring at the end of this year anyway. — iolnews.com
Online Reporter