Adidas: Leadership Lessons from the King of Comebacks.

Is adidas the king of brand revival? We think so.

Faced with some significant challenges just two years ago, including the abrupt discontinuation of its Yeezy line, Adidas has not only recovered but has emerged stronger. Another incredible revival built on blending cultural resonance, strategic agility, and a renewed focus on heritage.

The Yeezy Fallout: From Crisis to Opportunity

This most recent turning point for Adidas came in 2022, when the company was forced to terminate its lucrative Yeezy partnership amid the widely publicised controversy surrounding Kanye West, whose “hateful and dangerous” comments were said to “violate the company’s values of diversity and inclusion, mutual respect and fairness”.

Some said this news would leave Adidas scrambling for a new flagship sneaker to fill the void left by the Yeezy, which had become one of its most significant revenue streams, generating $2 billion in annual sales for Adidas, making up around 10% of the brand’s total revenue.

However, Adidas displayed a resolute calmness whilst stating the termination was expected to “have a short-term negative impact of up to $250 million”, and warned it could lose $1.3 billion in revenue in 2023.

So, what did Adidas do to replace the Yeezy? In short, they didn’t create anything entirely new. Instead, Adidas turned to its tried-and-true strategy: leveraging its rich impactful history to revive timeless classics, capturing the imagination of both nostalgic consumers and a new generation of fans.

Heritage Meets Modernity: The Power of Nostalgia

Adidas’ comeback is largely down to it’s strategy centered on bringing back iconic styles from the 1970s, such as the Samba, Handball Spezial, SL 72, and more recently the Java sneakers, which have not been on the shelves for 50 years!

This pivot not only allowed Adidas to maintain its cultural relevance but also emphasised the brand’s enduring heritage. The revival of the Samba, in particular, proved pivotal—its renewed popularity was boosted by celebrity fans, as adidas reestablished its connection with both sport and fashion culture.

Defined by its strategic use of nostalgia—a tactic that has distinguished it from competitors in 2024. The brand adeptly leveraged its archive of classic shoes to tap into the growing demand for retro fashion. As mentioned, this strategy was not limited to the Samba with other vintage styles making triumphant returns. These re-releases have seeming resonated with consumers who value quality, authenticity and heritage, appealing to both long-time fans and younger generations.

Adidas also deepened its cultural resonance through strategic collaborations. An example is the collaboration with Bob Marley’s estate, celebrating the Jamaican reggae icon, who was known for wearing Adidas in the 1970s. This partnership really highlights Adidas’ ability to embed itself into broader cultural narratives, broadening the brands appeal across diverse audiences.

Agile Leadership: The Impact of Bjørn Gulden

The effective leadership of CEO Bjørn Gulden has been instrumental in Adidas’ resurgence. It’s widely noted that the former Puma CEO pushed for quicker, independent decision-making within the company, breaking down the risk-averse etiquette that had held the brand back in previous years. This shift in leadership culture allowed Adidas to be more agile in responding to market trends and consumer demand.

Gulden, an ex-pro footballer, has also redirected the brand back to its roots in sport, particularly in basketball, a key growth segment. This was highlighted by the re-release of the Jabbar sneaker, originally designed for NBA legend Kareem Abdul-Jabbar in the late 1970s.

Another critical move under Gulden’s leadership is the focus on localised strategies. Adidas opened a new Los Angeles office and creation center, wanting to adopt a regional approach, combined with an agile leadership model, allowing Adidas to stay ahead of the competition and capitalise on even more market opportunities.

The leadership talent required in a time of “crisis” is characterised by agility, strategic vision, and a deep cultural understanding of both the brand and the market. Leaders need to be resilient, able to pivot quickly from original plans while staying anchored to core brand values…. not an easy task when dealing with a business the size of Adidas.

This type of leadership profile involves not just operational acumen, but also the ability to inspire teams and reinvigorate a company that had been set back. Executives like Gulden exemplify this, as they encourage empowerment, independent decision-making, promoting creativity and calculated risk-taking. The kind of talent that succeeds in these environments is visionary, culturally attuned, and capable of connecting with diverse consumer bases—all while maintaining an agile approach to innovation. This combination allows companies to move forward with confidence and even excitement, finding opportunities for growth even when plans need to be reimagined.

What Competitors Can Learn

Adidas’ competitors can learn a lot from its comeback, particularly the balance it struck between nostalgia, cultural relevance, and authentic sports heritage. The key difference in Adidas’ approach is that they don’t simply rest on the laurels of the brands past—they actively reimagine classics to make them super relevant today. The return of the Samba, for instance, was accompanied by strategic partnerships with fresh colours and design iterations; using a combined marketing approach to attract both new and old consumers.

In contrast, many competitors, including Nike, have found themselves unable to capture the same energy. Adidas’ success is a reminder that reviving heritage products requires more than just re-releasing old designs—it requires an understanding of cultural timing, modern relevance, and a willingness to be flexible in execution.

Over the last few years Nike has seemed to get lost in it’s “win anywhere” strategy. First, Nike eliminated several business categories, consolidating brand, product, development, and sales into a single organisational structure. This led to the elimination of hundreds of jobs which seemingly saw many core competencies get lost.

Moving away from wholesale shoe-selling to the DTC model, saw long standing key relationships broken down. Downsizing wholesale sales teams seemed to leave a hole for consumer feedback, in the end resulting in issues with product quality and negative reviews.

Nikes obsession in more recent years with digital marketing has also been a disaster in the long term. Especially for a brand like Nike whose original brand marketing strategies truly inspired so many young marketers to start their careers. These issues have all contributed to the brand looking lost and losing traction in the market.

Conclusion

Adidas’ newest comeback is a testament to effective leadership, a deep understanding of consumer culture, and an ability to leverage the brand’s rich heritage to meet contemporary demand. By reviving classic styles, Adidas has shown that nostalgia, when blended with cultural relevance and authenticity, can be a powerful tool for growth.

While Nike and other competitors face challenges related to market positioning and operational struggles, Adidas has managed to turn crisis into opportunity. They used the discontinuation of the Yeezy line as a catalyst for reinvention. By embracing their challenges, Adidas has truly set itself apart as the definitive “king of comebacks.”

The brand has shown that true leadership is about more than just navigating through crises—it’s about turning those crises into the fuel for a bold, new chapter.

References:

https://thecmojournal.substack.com/p/what-startups-can-learn-from-nikes /https://en.wikipedia.org/wiki/Adidas_Yeezy /https://www.businessoffashion.com/articles/retail/adidas-turnaround-ceo-bjorn-gulden-samba