![]() ![]() In 2016, Adidas expanded their partnership with Kanye, having seen tremendous value in the Yeezy brand name. Supreme enjoyed years of brand development and success using this model before being acquired by VF Corp for $2.1 billion. The model creates value not only for the company, but also for the resellers, who can make a profit by reselling the items to those who did not have a chance to buy directly from the website. Supreme and Yeezy have both seen success using this business model, which also creates an online ecosystem of resellers. This online shopping experience creates a cult-like following around the brand, and encourages buyers to focus on timing and selection. Omnichannel delivery will also allow for shoppers to reserve the items online, and easily pick up the product in-store, saving the company costs related to shipping. Applying this business model to the new Yeezy x Gap collection, and also to Gap’s other items available online would be an evolutionary step, encouraging higher product turnover and dramatically increased revenues for the company. Similar to the way streetwear brand Supreme releases clothing online, the Yeezysupply website updates at a set time and sends email alerts, making shoppers scramble to buy the item before it sells out. The way in which items are released creates a sense of urgency and scarcity, and encourages quick check-out before items sellout. Kanye West's collaboration with Gap will be transformative for the company, and his partnership with Adidas has taught us a few key things about the Yeezy business model. Omnichannel Importance And The Yeezy Business Model In addition, an analysis of Adidas’s business fundamentals before and after their Yeezy partnership give us a clear picture of how impactful Kanye’s influence will be on the future of Gap. ![]() Athleta is also another growth engine for Gap that will benefit from the change in the online shopping experience. is set to be a game changer for the company, but many analysts are underestimating the impact this will have over the long term. Kanye West has demonstrated time and time again that his knowledge of culture and fashion can be utilized to accomplish incredible things, and now his dream to become the self-described “Steve Jobs of Gap” is coming true. This shows the power of his brand, as well as his understanding of the hip-hop audience. All proceeds were donated to DMX’s family. Most recently, he collaborated with high fashion brand Balenciaga to design a limited edition shirt in memory of the late rapper DMX, which sold out online in less than 24 hours and raised over $1 million. As of March 18th, 2021, Bloomberg had updated his estimated net worth to a whopping $6.6 billion. ![]() It was estimated by Forbes in April 2020 that Kanye had reached billionaire status, thanks to his massively successful sneaker collaboration with Adidas ( OTCQX:ADDYY). West and his antics, two things are apparent: he gets people talking, and he knows how to make money. Over the years, it has become obvious that he is not only a Grammy winning recording artist, but also a talented fashion designer and polymath entrepreneur. Kanye West has an extremely controversial persona, which is well-known because of his music career. Along with Athleta's continued growth, Gap has tapped Kanye West for the Yeezy x Gap collection, which will jumpstart revenue growth and change Gap fundamentally in the years ahead. The shift to focus on omnichannel e-commerce will be wildly transformative, mainly because of much needed changes to the business model to keep up with the rapidly changing retail landscape. While closing down unprofitable retail stores, Gap is investing aggressively in a shift towards omnichannel e-commerce, and has increased sales growth projections to the mid- to high teens. Gap ( NYSE: GPS) is not just a traditional retail turnaround story, but a budding e-commerce, streetwear, and athleisure growth story in the making. Photo by Dimitrios Kambouris/Getty Images Entertainment via Getty Images ![]()
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