Over the past year, from July 2015 to July 2016, adidas, a Germany-based sportswear company, had seen a huge rise in their stock value: a whopping 97% rise. On the other hand, Nike, adidas’s probably biggest contestant in the sportswear field, received a rather hurting result: 3.7% decrease. What did adidas do to almost double their stock value? Was there a specific eye-grabbing item that interested the public?
Well, there are a couple of reasons why Adidas had such an outstanding year; however, the biggest factor is due to the success of adidas’s footwear sector. Adidas Sports footwear and adidas Originals produced a variety of trending shoes that converted many people into so called Hypebeasts, people who crave to follow the newest trends such as fashion, footwear, and more. One of the biggest example of this is the Boost Technology line-up that adidas first introduced in 2012, that became immensely popular in 2015.
So what is this Boost Technology that everyone is hyped about? Well, this line-up started with the adidas Energy Boost, a running shoe with cushiony styrofoam on the bottom of the shoe. The styrofoam-sole is the iconic feature of the line-up, which absorbs shock as one lays down his/her footsteps. This was a game changing feature that adidas included in their running shoes. After the initial success with Energy Boost, adidas then produced Ultra Boost, more premium shoe line-up than Energy Boost. It featured adidas’s trademark, primeknit body, and of course, the styrofoam sole. Among with the Ultra Boost, adidas also released a lifestyle shoe that includes the Boost Technology: the adidas NMD. This shoe drew attentions of previous Boost line-up owners as well as new customers due to its simple design that fitted the current trend of simplicity, as well as its comfortable experience. However, this was not the end. The success that those shoes grabbed lead into the biggest hit in footwear field in 2015: Yeezy Boost.
Those who do not know this shoe sub-brand of adidas may wonder, “Isn’t Yeezy a pseudonym of Kanye West?” That is true. In fact, adidas has teamed up with Kanye West, an American hip-hop artist with many hit songs such as Famous, Gold Digger, and Mercy, to create a fashion brand similar to Nike’s Jordan. Their first collaborated shoe was Yeezy Boost 750 sold out within 10 minutes on its initial release on February 2015. Since then, 2 more line-ups, Yeezy Boost 350 and Yeezy Boost 950 were released and succeeded hugely. Currently on eBay, Yeezy Boost 350, a sneaker that combines Boost technology with West’s unique designs, is sold around $1000~$2000 due to its limited amount of release, despite the fact that its original price is $200. Due to their trending designs, the Yeezy brand has achieved an overwhelming love by the public. With the three strong pillars, Boost, NMD and Yeezy that took care of sports; lifestyle; and premium, adidas was able to achieve net growth of 97% in their stock value.
Adidas has yet to come up with even more models: Ultra Boost Uncaged, NMD XR1, and Yeezy Season 3 that promises adidas’s continued success that may help on its stock value rising over double of the previous year.