Business Of Fashion : What Adidas X Gucci Means for Gucci — and Adidas

What Adidas X Gucci Means for Gucci — and Adidas
This week, everyone will be talking about the long-anticipated release of Adidas X Gucci merchandise, the Global Fashion Summit in Copenhagen and US inflation data.

Items from the collaboration between Gucci and Adidas go on sale on June 7. (Gucci)

A Much-Hyped Collaboration
  • Items from Gucci’s collaboration with Adidas, first announced in February, go on sale June 7
  • For Adidas, the collection comes on the heels of another luxury partnership with Balenciaga
  • Gucci has reported uneven growth in recent quarters, even as rivals have found success with timeless, ultra-expensive merchandise

Gucci and Adidas have had months to build hype for the collection that goes on sale this week, from the first glimpse on the runway in Milan in February to the full lookbook revealed last month to an odd episode in May where Chinese social media users were seemingly outraged by the existence of a non-waterproof umbrella with a listed price of 11,100 yuan ($1,600). The umbrella will almost certainly sell briskly nonetheless, along with Gucci’s $850 spin on the Gazelle sneakers and other items that mix and remix the two brands’ logos.
Adidas needs luxury collaborations like this one, and a recent team-up with Balenciaga, to close the hype gap with Nike, which has proven far more adept at generating brand heat over the last couple of years. All that buzz has real-world consequences; Nike’s stock is up about 15 percent since June 2020, Adidas’ is down 30 percent.
For Gucci, an attention-grabbing collaboration featuring products with mass appeal at luxury prices is par for the course. The question is whether Adidas X Gucci represents the latest chapter in that particular playbook or the start of a new one. Gucci remains one of the most talked-about luxury brands (its Instagram post announcing the Adidas partnership has over 1.2 million likes). But its sales haven’t grown at the same pace as rivals that have better balanced conversation-driving moments with clothes and accessories that luxury consumers view as timeless investments.
The Bottom Line: Kering is holding an investor day this week, where it’s expected to delve further into its strategy for Gucci, as well as Saint Laurent, which has found enormous success with a less hype-driven approach to luxury.