![]() ![]() to use continuous interface liquid production technology (CLIP) to create a midsole constructed from a single piece of elastomer, fine-tuned to expand and condense, and to vary in density and pliability. Will these advantages outweigh the costs of implementation and how quickly should Adidas transition production from traditional to additive manufacturing?Īdidas has recently partnered with Carbon Inc. Gulden did not provide a timetable for a final decision on the inventory.According to the Harvard Business Review, “A new era in additive manufacturing, or 3-D printing, is at hand,” and “ has made it possible affordably produce a much broader range of things – from the soles of running shoes to turbine blades – often in much higher volumes.” With potential to offer customized sizes and styles in parallel with increased factory automation and flexible production, Adidas is aggressively pursuing additive manufacturing technology for shoes. The Adidas CEO said he has received “probably 500 different business proposals” from people who wanted to buy up the remaining Yeezy sneakers for resale. Adidas cut ties with Kanye West last year. “If you did that, they will come back again because the value of the product is not the physical value of the ingredients, it is the premium because it’s a brand and the merchandise that is sold at a high price,” Gulden said. He suggested the high-end products would end up on the resale market. Gulden also questioned the viability of simply donating the Yeezy sneakers to earthquake victims in Turkey or another worthy cause. Other options available to Adidas include selling the Yeezy inventory “at cost” - meaning the brand wouldn’t profit on the products - selling them at a small margin and donating the proceeds to charity. Adidas CEO Bjorn Gulden said the shoes probably shouldn’t be destroyed over “sustainability issues.” Getty Images Kanye West faced universal criticism following an anti-Semitic meltdown last year. ![]() “The other side is to say we burn it or we do whatever it takes then to destroy it, and it disappears, then you have another issue,” he added. ![]() Gulden said Adidas would face “a lot of reputational risk” if it tries to rebrand and sell the Yeezy merchandise. The messy breakup with West contributed to a dismal fourth-quarter result for Adidas, which posted a net loss of $540 million. The German sports apparel giant warned that it will take a whopping $527.5 million hit to its earnings this fiscal year if it does not sell its remaining Yeezy apparel. Adidas has a $1.3 billion stockpile of unsold Yeezys. ![]() The Yeezy imprint was one of the most profitable segments of Adidas’ business until last year, when the brand hastily cut ties with West - who has legally changed his name to Ye - following a series of bizarre anti-Semitic tirades. “That’s why we haven’t made a decision on it, because it’s a very complicated issue,” Gulden added. “And then, those who are like, ‘Please don’t sell because you have a reputation issue,’” Gulden said during the earnings call. “Depending on who you speak to, people will say you cannot destroy because it’s a sustainability issue, right? So, please don’t destroy. Starbucks slammed for going ‘full Bud Light’ with trans adĪdidas decides to start selling Yeezy shoes againĪdidas still hasn’t figured out what to do with its $1.3 billion stock of unsold Yeezy sneakers after cutting ties with rapper Kanye West over anti-Semitic remarks last year.ĬEO Bjorn Gulden outlined the company’s costly dilemma during a call with analysts Wednesday - noting that the options available to Adidas, such as rebranding the sneakers or even literally burning the Yeezy inventory, all have major downsides. Kanye West sued by Gap for $2M after failed Yeezy collaboration Yeezy shoes back on sale - months after Adidas split with Kanye West ![]()
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