After Adidas decided to not renew the particular contract of CEO Kasper Rorsted, some feared that the company would be rudderless. But its decision to poach the head of smaller shoe rival Puma has put an end to that will immediate risk.
Bjørn Gulden, a Danish national, is the second Scandinavian in a row to lead the world’s second-largest sportswear maker .
He’s well acquainted with Adidas and is set for something of a homecoming, having served at the company in the 1990s before later moving to Puma, where he became CEO in 2013.
Before his time at Adidas, Gulden even played professional football in Germany, where Adidas will be based, lacing up his boots for the local Nürnberg team affectionately known within the Bundesliga simply as “The Club. ”
Although it may have nabbed a new TOP DOG, Adidas offers a whole slew associated with issues in order to contend with, some shared by rivals like Nike , others more homegrown.
Kanye Western
The scandal over Kanye West, who now goes by the name Ye, has been a nightmare with regard to Adidas. The Yeezy line of footwear is a bright spot for its fashion line, so the rapper’s anti-Semitic comments have been a public relations disaster.
The low point was reached when West crowed this individual could say whatever anti-Semitic things he or she wanted, and Adidas would accept it—forcing the company’s hand. The last thing any global brand through Germany wants is being associated with anti-Semitism.
Financially the particular end of the partnership along with West will be a major sore point that Gulden will have to address. Last month Adidas said the decision to end its Yeezy business with immediate effect will cost this up to €250 million within net profit this year, adding that will more information will be made available when it presents quarterly results on Wednesday.
Bloated inventories
One of the worst outcomes for many consumer goods brands provides been the ongoing headaches from supply chains, in particular in China, where shipping delays have meant products arriving just at a time when demand is usually ebbing, or the next season is simply around the corner.
It’s no secret that athletic wear companies like Adidas and Nike pas cher have the particular bulk of their goods manufactured in The far east, which has been struggling to contain COVID outbreaks by instituting lockdowns.
Both big name brands now are dealing with deep discounting to clear inventory. The inbound CEO will certainly have to judge just how much of a margin he is willing to sacrifice to move product.
Metaverse dalliance
Former CEO Kasper Rorsted decided to jump on the non-fungible token (NFT) trend. Not only did Adidas purchase its very own Bored Ape NFT in order in order to develop the own type of branded clothing, it also bought a plot of virtual land inside the Sandbox, a platform for the virtual world.
Unfortunately the hype around the metaverse has dramatically cooled off, with the NFT industry suffering a collapse in demand .
Where Gulden takes Adidas’s metaverse plans next is anyone’s guess at this point.
Local rivalry
Adidas plus Puma cultivate a deep rivalry that goes back to a feud that saw Rudolf Dassler break with his own brother Adolf “Adi” Dassler within 1948 in order to launch his own sports shoe company along with Puma in the very same sleepy Bavarian town.
With both businesses headquartered in Herzogenaurach, news travels fast, and when one is enjoying solid quarterly results and the other is not, it does not sit well regarding very long among staff.
After three difficult years with Rorsted in the helm, Adidas said in August the time was right to “pave the way for a restart. ” Gulden’s task may be to reestablish Adidas’s commercial and financial dominance over its smaller competitor. Puma celebrated record sales and operating profit within the last quarter.
FIFA World Mug
What should be a bright spot on Adidas’s calendar is definitely anything but. Traditionally football’s most important tournament has served as a stage for that sport’s greatest heroes to emerge, whether it was Brazil’s Pele dazzling Swedish crowds in 1958 or Zinedine Zidane playing to the home fans in his native France 40 years later.
Adidas itself emerged as a famous brand thanks in order to Adi Dassler’s idea intended for removable plus exchangeable metal cleats that will helped the particular 1954 German team beat Ferenc Puskas’s heavily favored Hungarian side on a slick pitch in what became known as “ The Miracle of Bern . ”
Instead of the usual enthusiasm that sees followers rushing to snap up their national team’s kit or walk out with an official replica of the tournament ball, the mood this year is sombre.
With the monthlong competition about in order to launch upon Nov. 20 , whenever the football-loving Northern Hemisphere is experiencing wintry temperatures, excitement is at its lowest level within memory.
Moreover, with the particular host nation, Qatar, asking fans not really to engage in any behavior the Muslim nation might find offensive, including openly displaying gay pride, advocacy groups and actually some brands like Brewdog are calling for a boycott .
This will no doubt leave a sizable dent in the bottom line for Adidas, which offers long relied on a World Cup bump to juice its financial results every four years.
In short, Gulden has a lot of balls to juggle when he finally starts within January.
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