Björn Gulden is already rebuilding Adidas
On March 8, 2023, Michael Lichtinger will comment on an article in the Handelsblatt that highlights Adidas' current challenges. The focus is on Björn Gulden, the newly appointed CEO of the sporting goods giant, who is already raising hopes for a positive transformation of the company.
Axel Höpner from Handelsblatt, delves into the reasons why Gulden, as the new captain on board Adidas, is a promising sign for the ailing group. This turning point follows the dissolution of the lucrative “Yeezy” partnership with Kanye West, a decision prompted by the controversial statements made by the US rapper.
Björn Gulden: A beacon of confidence
Gulden is no stranger to operational excellence — his success at Puma attests to this. At Adidas, he receives backing from the Supervisory Board for far-reaching restructuring measures. This includes the reorientation towards specialist retailers and the goal of launching innovations more quickly on the Chinese market. These steps follow a modest increase in turnover to 22.5 billion euros and the associated reduction in the dividend from 3.30 euros to 70 cents.
“Expectations for guilders are immense,” says Michael Lichtinger. The Norwegian must deliver quickly at Adidas and should not allow himself to make any major mistakes: “Too much has simply gone wrong in Herzogenaurach recently.”
Struggle for market leadership
A newly formed supervisory board is intended to help Adidas challenge Nike, the global market leader. However, Adidas needs to strengthen itself first, especially in light of Nike's sales growth and the growth of Puma, the global third-place winner.
The end of Yeezy: A springboard for something new
The discontinuation of the “Yeezy” line means not only the end of an era, but also a loss of 1.2 billion euros in sales. The whereabouts of the existing inventory are still unclear, but it is possible that part of the collection will still be sold. Some of the proceeds generated could be donated as a gesture towards those affected by West's behavior. The legal disputes between Adidas and West are ongoing. For Gulden, however, the Yeezy ending primarily symbolizes an opportunity for a new start.
Restoring appeal and innovative spirit
Adidas is faced with the task of revitalizing its weakened brand strength. Gulden's mission will be to make the brand desirable again and regain previous market shares. By launching new products, Adidas aims to diversify its business base and be less dependent on individual partnerships in order to guarantee long-term business success.