When we discussed how Adidas was ruining collabs with potential, we mentioned the Adidas IVY PARK financial struggle. However, we hoped that the partners could salvage whatever they still have on hand before the deal ends in 2023. Unfortunately, this collab seemed to run its course with Adidas and IVY PARK parting ways. So, where did it all go wrong? And who’s to blame here? Let’s take a look at everything we know!
Adidas IVY PARK – A Recap
IVY PARK is the brand that Beyoncé founded in 2016. The name is a mashup of two things, her daughter’s name Blue Ivy, and Park for Parkwood Park in Houston. For those unaware, Bey grew up in Houston, and that park means a lot to her. Three years later, the Adidas IVY PARK partnership started with a huge drop. That first collection sold out within minutes on Adidas’ website, and the revenues were pretty good.
Where Did It Go Downhill?
In 2021, the Adidas IVY PARK partnership sold $93 million worth of merch. So naturally, the brand with the three stripes had high hopes and projected $250 million in sales in 2022. But lo and behold, 2022 came around and the partnership made only $40 million in sales. This dramatic drop in sales kinda humbled Adidas, who changed the 2023 projections from $335M to $63M. And the way things went also didn’t end well because we got the news that the partnership is no more.
What Went Down?
Reportedly, the split happened because Adidas and IVY PARK had creative differences. Now, from a business perspective, this partnership has been dead for a while. Despite the huge losses Adidas was taking, Beyoncé got $20M annually as compensation. And although Queen Bey is a very popular artist, she is not a marketing genius the way Ye was. She is not a public figure in the sense that she made fashion statements that stuck. In addition to that, her public appearance (excluding shows) are pretty rare. On the other hand, Adidas didn’t work on brand ambassadors who had that kind of influence. You know, the street goes both ways.
With Adidas IVY PARK Out, What’s Gonna Happen?
Somebody has to say it you know… Adidas kinda tanked after the Kanye breakup, and the losses they sustained are proof enough. These losses are so big that rumors started coming out about Kanye and Adidas coming together again. Of course, that didn’t happen, but Adidas is still sitting on hundreds of millions of dollars worth of kicks. And that kinda proves how Adidas will probably keep on struggling to find a hype replacement.
Now, there’s definitely an upside, and we hope it’s the saving grace for the three stripes. Adidas is landing some interesting names, and the Fear of God partnership is launching products soon. But will any of those be good enough to remotely compete with the revenues that Yeezys made? Or is forgiving Kanye Adidas’ only shot at making a comeback into the hype scene? Guess we’ll find out soon enough!
