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The power of celebrity endorsements is exploding

With a long list of celebrities signing deals with sneaker companies and creating their own line of sneakers, it seems like endorsement deals only work with this product. Two of the most prominent deals are those between Rihanna and Puma, and Kanye West and Adidas:

  • In 2014, Puma signed Rihanna as creative director in a USD 1m, multi-year contract. However, Puma most likely did not expect it to become the success it did: Rihanna’s collaboration with Puma helped the brand earn USD 975m in the last quarter of 2015, which is a 17.1% increase in average sales! Source
  • In 2013, Kanye West revealed that he was leaving Nike as endorser, after Nike refused to pay him royalties on his sneaker sales. Instead, he signed a deal with Adidas worth an estimated USD 10m, and the Yeezy Boost collection from Adidas by Kanye West has become a massive success. In this era of social media, proof of success can be measured by other means than earnings and sales: In the number of Instagram likes! Today, the success of celebrity endorsement deals lie in the celebrities success on social media. In 2015, Adidas received a total number of likes of almost 80m, number 2 on the sneaker brand list was Vans with a bit more than 40m likes, whereas Kanye West’s enemy, Nike, received less than 30m likes. Source