Adidas is strategizing to maintain the momentum of its iconic Samba and Gazelle sneakers amidst surging demand, aiming to avoid the pitfalls of overexposure.
These classic kicks, reminiscent of the soccer fan culture of the past, have witnessed a remarkable surge in sales, transitioning from a few hundred thousand pairs per month to millions, according to CEO Bjorn Gulden.
The terrace shoes’ contribution has significantly bolstered Adidas’ performance in the first quarter, though specific figures remain undisclosed. Priced between $90 and $350, these sneakers have captured the attention of consumers globally.
Nevertheless, investors and analysts remain vigilant, wary of Adidas potentially over-relying on these terrace shoes, especially in the aftermath of the abrupt discontinuation of the lucrative Yeezy line.
Despite this, optimism abounds, with the Adidas Samba clinching Footwear News’ esteemed “Shoe of the Year” award in 2023, a significant accolade for the brand.
Strategies to Sustain Momentum and Avoid Overexposure Amid Surging Sales of Samba and Gazelle Sneakers
Bernstein analyst Aneesha Sherman predicts substantial sales from the terrace shoes this year, approximating 1.5 billion euros, nearly rivalling the peak revenue generated by Yeezy.
However, she cautions that this trend may reach its zenith soon, echoing sentiments expressed by portfolio manager Thomas Joekel, who stresses the need for adaptability in response to shifting consumer preferences.
Adidas, cognizant of the cyclical nature of fashion trends, is diversifying its offerings. While the Samba reigns supreme, the chunkier Campus shoes and the classic Superstar are gaining traction in certain markets.
The brand is judiciously managing the Superstar’s market presence, focusing on timeless black and white editions while introducing limited-edition collaborations to maintain exclusivity and allure.
Retailers like JD Sports and Foot Locker have attested to the sustained appeal of Adidas’ terrace styles, citing the introduction of new variations as a key driver of consumer engagement.
CEO Regis Schultz underscores the importance of avoiding over-saturation, a sentiment echoed by analyst Cedric Lecasble, who emphasizes the delicate balance between meeting demand and preserving the product’s allure.
In essence, Adidas undergos the delicate dance of meeting demand while safeguarding the exclusivity and desirability of its iconic terrace shoes, ensuring their longevity in an ever-evolving market scenario.
