How Adidas is trying to take advantage of the high demand for its Samba shoes and multicolored Gazelle shoes

Adidas is aiming to capitalize on strong demand for its black-and-white three-stripe Samba and multicolored Gazelle shoes and is taking steps to prevent them from becoming victims of their own success, Reuters writes.

The German sportswear giant has stepped up production of sports shoes known as “patio shoes”, inspired by the footwear of football fans from the 1970s and ’80s, Reuters notes, according to News.ro.

“Clearly and clearly, this trend won’t last forever”

Sales have grown from a few hundred thousand pairs a month at the beginning of last year to millions a month, according to CEO Bjorn Gulden, with Adidas now looking to increase their popularity.

The company said sales of patio shoes helped drive its strong first-quarter performance, without providing detailed figures for the Samba, Gazelle and Spezial. The shoes have a price of approximately 90 dollars and, with limited edition collaborations, they end up costing up to 350 dollars, writes Reuters, according to News.ro.

Investors and analysts are watching closely for signs that Adidas is becoming too dependent on shoes, with the sudden end of the hugely profitable Yeezy business still fresh in their minds.

Adidas posted a loss last year for the first time in 30 years, after its split with US rapper and producer Kanye West ended the trendy sneaker line.

The adidas Samba has won Footwear News’ 2023 Shoe of the Year, the brand’s first win since the Yeezy Boost 350 in 2015.

A Bernstein analyst, Aneesha Sherman, estimates that patio shoes will generate 1.5 billion euros ($1.61 billion) in sales this year, about 7 percent of Adidas’ total revenue and close to the 1.7 billions that Yeezy brought in at his peak. Sherman anticipates that sales of patio shoes will likely see sales peaks in all regions this year.

“Obviously and clearly, this trend will not last forever. At the end of the day, the consumer decides, and companies like Nike or Adidas must be agile to move on these trends”, said Thomas Joekel, portfolio manager at Union Investment, in Frankfurt, which owns Adidas shares.

When British Prime Minister Rishi Sunak was seen sporting the Samba in a clip posted to Instagram earlier this month, some Brits felt it dealt a blow to the shoe’s street shoe image.

Sunak later jokingly apologized to the “Samba community,” but CEO Gulden said Sunak’s preference for the shoes had no impact on sales.

Limited editions

Broader trend cycles can be difficult for large sportswear manufacturers. In 2018, Adidas sales in Europe, its biggest market, fell when its minimalist Stan Smith shoes started to go out of style.

And Nike is currently reducing the supply of classic Air Jordan 1 shoes due to weaker demand.

So Adidas is trying to diversify its bets. Its skater-style Campus shoes are becoming increasingly popular and are outselling the Samba in some markets, Gulden said.

Adidas is also looking to ramp up sales of its classic Superstar shoe to spark a renewed trend for next year.

It recently released a $200 version of the shoe with designer Edison Chen featuring a wavy sole.

Gulden said Adidas has worked to clear the market of the Superstar’s seasonal colors, focusing only on the classic black and white, to ensure the market is “fresh” for new releases later this year and next.

“We will maintain the current franchises and then schedule Superstar activation as we and the retailers need them. We will not push it globally in huge volumes. We will retain it and let the consumer decide when they want Superstar,” said Gulden.

Bringing more expensive limited-edition versions in collaboration with designers, such as the $350 Y-3 Gazelle with Japanese fashion designer Yohji Yamamoto, is one way to keep a product on trend.

“What Adidas and Nike are doing with some of their products is trying to follow the luxury playbook – premiumization, exclusivity, limiting supply, making everything more desirable so you can have higher margins and create a halo effect for the brand ”, said Matt Clark, retail expert at AlixPartners consulting firm in London.

For retailer JD Sports, new variants of the Samba shoe in different colors and materials are helping to keep shoppers engaged, managing director Regis Schultz said in its recent financial results.

Retailer Foot Locker also flagged “strong demand” for Adidas patio styles. (Photo: Dreamstime.com)