The German Sportswear Company Adidas said on Wednesday that it has agreed to sign their long-term partnership with singer-turned-designer, Kanye West, which includes performance gear and a new line of co-branded retail stores. Although Adidas spokeswoman declined to give financial details or specify the length of the deal, media reports put the value of the previous deal at $10 million. Since falling into third place in US behind Nike and Under Armour, the German Company try to boost their sales particularly in the U.S.
Adidas sales increased by 5% in North America last year and bringing in about $3 billion, compared to Nike that reportedly sold about $15 billion in the region for the fiscal year ended May 31. During the first quarter sales this year, Adidas reported rose 31% of the sales, which is mainly contributed by its retro-casual shoes such as Stan Smith and Superstar sneakers.
This is not the first time that Adidas worked with Kanye West. Last year the high-end sneakers designed by Mr. West in limited quantities - The Yeezy Boost 750, was originally priced at $350 but have been increased selling for thousands of dollars on the secondary market, which brought Adidas’s share of the more than $1 billion in secondary market jumped from 1% to 30% since the shoes were introduced in February 2015, according to market tracker StockX, formerly known as Campless.
Adidas wants to develop beyond its current lifestyle focus to introduce new sports performance designs with Mr. West. Adidas also plans to separate the Adidas + Kanye West line into its own business unit and open new stores to sell West’s Yeezy branded products. The German company said. Mr. West’s sportswear products also are expected to be sold at some existing retail partners, such as Foot Locker Inc., though specific plans also weren’t yet available.
“Our industry is so ready for disruption, the same signature lines have X player, Y player, Z player, so of course we’re going to have Kanye work with our guys to challenge that as well,” said Eric Liedtke, chief marketing officer for Adidas.
Adidas still looking to corporate with other U.S. sports stars in the coming years in order to expanding their current fashion fad for its retro sneakers, according to the company's North America head Mark King told Reuters last month.