Adidas loses another star as 'partnership of a lifetime' with Beyonce ends after massive drop in sales
LOS ANGELES, CALIFORNIA: Beyoncé and Adidas, two global powerhouses, have mutually agreed to separate ways. As sales predictions fall below expectations, those who had been looking forward to the new collection will, unfortunately, have to say goodbye to the German lifestyle brand and the Grammy-winning singer's collaboration.
Just two months after the 'Renaissance' singer saw a 50% decline in sales of her Ivy Park clothing line, which brought in just $40 million in 2022 compared to $93 million in 2021, news of the purported split surfaced, as per Hollywood Reporter. It was reported at the time that Beyoncé's clothing business was anticipated to generate well over $250 million in revenue in 2022. The apparel and sneaker line was "losing money for Adidas" because "in five of the last six Ivy Park releases, roughly half of the merchandise that was produced went unsold," as per The Wall Street Journal.
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When did Beyoncé begin her partnership with Adidas?
Ivy Park was first introduced by Beyoncé and Topshop in 2016. However, British businessman Philip Green's company sold the brand to the artist in 2018 after being accused of sexual harassment, bullying, and bigotry. Later that year, the 'Drunk in Love' singer collaborated with Adidas to introduce a line that catered to both men and women.
Ivy Park debuted many collections, with the first one going on sale in April 2019. Adidas refers to the collaboration with Beyoncé as "a partnership of a lifetime," according to Hollywood Reporter. Missy Elliott, Cardi B, Kendall Jenner, Angela Bassett, Ciara, Reese Witherspoon, and Hailey Bieber were among the celebs who received closet-sized traffic cone-orange boxes as part of the drop's extensive PR campaign.
In January 2020, Beyoncé said, "This new line is fun and lends itself to creativity, the ultimate power. I focused on designing a unisex collection of footwear and apparel because I saw so many men in IVY PARK. The way they have embraced the brand is an unexpected gift. I appreciate the beauty of gender-neutral clothing and breaking the so-called fashion rules," according to Elle.
Why are the two global giants parting ways now?
Ivy Park evidently failed to live up to the expectations Adidas was envisioning when they initially promised Beyoncé "guaranteed annual fees and creative control," according to Wall Street Journal. Adidas had hoped that Ivy Park would perform similarly to Kanye West's Yeezy brand and generate hundreds of millions of dollars in sales, but the line underperformed, with roughly half of the inventory from five of the six releases still on the shelves.
Adidas and Ivy Park employed different marketing strategies, with the German multinational company favoring its own identity. Sales for Ivy Park were expected to drop from $93 million in 2021 to $40 million by the end of 2022. Adidas expected to lose at least $10 million in 2022, whereas Beyoncé was slated to get the same $20 million in compensation similar to her prior year's revenue.
'IVY PARK as a stand-alone brand again'
On Twitter, several fans have voiced their opinions in reaction to Beyoncé and Adidas' separation, with one individual writing, "They were losing money. Makes sense." Another fan wrote, "Not surprised. It's honestly for the best. Looking forward to what’s next for her brand!" A third person wrote, "Yall aint gonna admit this but sales weren’t high unfortunately, and as much as i love bey, some of the clothes/outfits were not it the marketing production was genius though." This other fan wrote, "Finally! IVY PARK as a stand-alone brand again. Can't wait to see the new direction they take." While the 'Cuff It' singer's relationship with Adidas may be gone, she is preparing to launch her eagerly awaited Renaissance World Tour in May.
They were losing money. Makes sense.— #QueenYaya (@DHQYaYa) March 24, 2023
Not surprised. It’s honestly for the best. Looking forward to what’s next for her brand!— ladidai 🔜 Eternal Garden 💐 (@ladidaix) March 23, 2023
yall aint gonna admit this but sales weren’t high unfortunately, and as much as i love bey, some of the clothes/outfits were not it 😅 the marketing production was genius though pic.twitter.com/SJPJu20Fmp— Plutonian (@malelilith) March 24, 2023
finally! IVY PARK as a stand-alone brand again. Can’t wait to see the new direction they take 😃😃😃— a Church Girl (@church_hive) March 24, 2023
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