It’s a bizarre social media campaign that US rapper Kanye West (45) is currently fighting Adidas, the outgoing CEO Kasper Rorsted (60) and other group managers. The star feels betrayed by the German group, Adidas simply continued to use its designs and included it too little, although both have had a lucrative business relationship under the Yeezy label for years.
“It will cost you billions if I leave,” the superstar threatened via Instagram; He would be due $500 million in royalties over the next year alone. Huge numbers that Adidas does not want to comment on request, just as little as the argument with the rapper, who now only calls himself Ye.
Even if the fantastic numbers aren’t quite right. The fact is: The partnership, which is scheduled to run until 2026, is quite profitable. Adidas helped Ye become a billionaire. And the rapper has helped the company not only sell Yeezy sneakers for big bucks — he also gives Adidas credibility in hip-hop culture.
No other German brand does this better. Adidas leads the hip-hop ranking of the specialist consulting agency The Ambition, behind US rival Nike. The study – which is available exclusively to manager magazin – is based on a survey of more than 2000 hip-hop-affine people between the ages of 12 and 49, who were asked to rate 160 brands in terms of relevance, potential and cultural credibility.
It is hardly surprising that the sporting goods manufacturers are at the top of the ranking; Puma and New Balance are also in the top ten. Their marketing professionals have been trying for years to anchor them in the scene. As a pioneer in the industry, Adidas already cooperated with the US rappers Run DMC in the 1980s, and further collabs with hip-hop stars followed later. Nike also used to work with Kanye West – until he publicly fell out with the then CEO Mark Parker (66) and switched to Adidas.
The sneaker manufacturers not only used the rap and hip-hip stars as advertising faces, but also included them in the design. Many other brands have copied this successful model over the years, and it’s no longer just sporting goods manufacturers. “The results show a clear trend,” says Lara Muhn, who oversaw the study as head of strategy at The Ambition. “In 2022, marketing alone will no longer be enough to create lasting relevance in hip-hop.” The brands would have to take into account what people want from the culture as early as the product development stage in order to be able to play a real role. This can then pay off: more than two thirds of all young people between the ages of 12 and 24 identify with Germany with hip hop culture.
The German soft drink and snack manufacturer 4Bro has specifically made use of the mechanisms. In the ranking, 4Bro comes in third place overall – ahead of Red Bull in fourth place. “In view of the marketing efforts of the two companies, it’s a small miracle,” says consultant Muhn. “That’s largely because 4Bro’s products take place in the daily lives of hip-hop culture.” Overall, however, the soft drink manufacturers enjoy a similarly high level of credibility as the sneaker manufacturers: with Coca-Cola, Rockstar and Monster, a total of five brands are among the top eleven.
Mercedes-Benz enjoys the highest level of cultural credibility among car manufacturers – but only in 25th place overall. bmw managed to overtake Lamborghini compared to last year. The Munich-based company would be perceived as an “attacker brand”, according to the consultants. The marketing people had shown good instincts when partnerships with US rapper Nas (49) and collabs with US designer Ronnie Fieg and his brand Kith: Kith exclusively designed a limited edition Special model of the BMW M4 Competition.
Above all, however, BMW benefited from the hype surrounding the BMW E30, which artists such as Frank Ocean (34), Tyler the Creator (31) and Travis Scott (31) conjured up as their favorite car.
Other brands also benefit from this effect: The cognac brand Hennessey is sung about in various tracks as well as the luxury watches from Rolex (“Roli”) or designer brands like Gucci. Tuned Mercedes AMG appear in many videos, which strengthens the aura of the brand. And the fast-food chain McDonald’s was happy because Kanye West brackered his sherp tank through a McDrive in a Superbowl commercial – and the German rapper Luciano (28) in the music video for his song “Schmetterling” in a branch of the company. Such inherent praise probably has the greatest impact on cultural credibility—it’s just that it’s hard to control.
Of course, the thoughts and desires revolve more around sneakers, soft drinks and luxury items. “But that doesn’t mean that other brands don’t have a chance of gaining cultural credibility in the scene,” the authors of the study sum up. A successful example: the Berliner Verkehrsbetriebe (BVG). Not exactly sexy, actually. But through clever communication via social media channels and offensive commercials, the company struck a chord. The reward: The BVG are not considered high-flyers in the hip-hop community – but with rank 91 they are significantly cooler than Volkswagen (Rank 125) or Lufthansa (Rank 156).