{"id":1203646446,"date":"2024-06-03T13:00:00","date_gmt":"2024-06-03T17:00:00","guid":{"rendered":"https:\/\/footwearnews.com\/?p=1203646446"},"modified":"2024-06-28T14:26:00","modified_gmt":"2024-06-28T18:26:00","slug":"adidas-ceo-bjorn-gulden-interview","status":"publish","type":"post","link":"https:\/\/footwearnews.com\/business\/business-news\/adidas-ceo-bjorn-gulden-interview-1203646446\/","title":{"rendered":"EXCLUSIVE: Adidas CEO Bj\u00f8rn Gulden on Creating Viral Moments, Remote Work and How He\u2019s Pivoting the Business to Win"},"content":{"rendered":"


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Bj\u00f8rn Gulden is known for his larger-than-life personality, but when it comes to taking photos, the Adidas chief is surprisingly camera-shy.<\/p>\n

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 \u201cNow finished,\u201d Gulden said with a laugh, walking away mid shoot from photographer Andrew Boyle and toward the couches inside FN\u2019s photo studio in New York City wearing a pair of blue-and-yellow SL 72s, a running shoe from 1972 that\u2019s performing well for the brand.<\/p>\n

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After changing into a black-and-white Adidas track jacket and matching Superstars, Gulden returns to the set for the final shot. His shoe of choice is fitting. Retro sneakers are dominating the industry, and the Superstar, which debuted in 1970, is one of Adidas\u2019 greatest silhouettes ever. It\u2019s also on deck to be the brand\u2019s next big focus in the coming years, according to Gulden.<\/p>\n

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The executive is keen to speak to FN about the business \u2014 tapping his decades of experience to offer insights on the future of the sports brand. Adidas is a company near and dear to Gulden.<\/p>\n

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Before he worked in the footwear industry, the executive wore the brand\u2019s shoes on the pitch as a professional soccer player. And after his athletic career, Gulden held roles at Adidas from 1992 to 1999, including senior vice president of apparel and accessories, before spending nine years at rival Puma, where he was credited with making the brand a major footwear player once again.<\/p>\n

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When he returned to Adidas in January 2023, Gulden inherited a brand in turmoil following the termination of its Yeezy deal<\/a>. (The move was spurred by repeated antisemitic statements by the brand founder Kanye West in October 2022.) After the deal ended, Adidas weighed a variety of options for what to do with the leftover $1.3 billion<\/a> worth of Yeezy product.<\/p>\n

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\"Bjorn<\/figure>\n

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Ultimately, Gulden and his team decided to sell<\/a> the leftover Yeezy product instead of scrapping it, giving some of the proceeds to charity. In the first quarter<\/a> of 2024, Adidas made 150 million euros selling leftover Yeezy stock. Now, the company has around 200 million euros worth of it left, but plans to sell it at cost over the next three quarters. And, as they have been every quarter since the 2022 breakup with West, Adidas executives were keen to emphasize their brand is just as strong without Yeezy. \u201cI wasn\u2019t at the company when the [Yeezy] relationship was built,\u201d Gulden said. \u201cBut we\u2019re solving the situation I inherited in the best way possible.\u201d<\/p>\n

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At Adidas\u2019 annual general meeting in May, Gulden explained the state of the company when he walked in the door.<\/p>\n

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\u201cWe started 2023 with lots of negative reports,\u201d Gulden said at May\u2019s meeting. \u201cPeople said things like \u2018there is no innovation\u2019; \u2018there are no hot products and there is no brand heat\u2019; \u2018there\u2019s no talent.\u2019 It was a difficult start, but I will show you that we do have innovation that existed 12 months ago that had nothing to do with me and was already there.\u201d<\/p>\n

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The CEO highlighted the Adizero Adios Pro Evo 1, Terrex Agravic Speed Ultra, Predator 24 and AE 1 sneakers as innovative models.<\/p>\n

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\"Bjorn<\/figure>\n

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Gulden also signaled to investors that Adidas will continue to push out more affordable versions<\/a> of some of its most popular shoes. \u201cIt\u2019s important to understand that not everyone can buy a shoe for 120 to 150 [euros], but everyone wants to take part in the same trends,\u201d Gulden said.<\/p>\n

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The brand revealed plans for models priced at 60 to 80 euros. Some of the shoes, such as the Samba-like VL Court, the Campus-adjacent Grand Court and the Stan Smith-leaning Advantage, are already on the market. During spring 2025, Adidas is set to introduce budget-friendly Spezial and Superstar models.<\/p>\n

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\u201cAdidas excels by being rooted in performance while seamlessly crossing over into lifestyle. It resonates across footwear for men, women and kids, as well as apparel and accessories \u2014 a versatility that few brands can claim,\u201d said Snipes chief merchandising officer Dimitrios Lessen, who admitted he\u2019s excited to see how Adidas will further fuel the T-toe trend with its Sambae and Samba XLG silhouettes.<\/p>\n

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Another key to Adidas\u2019 winning strategy<\/a> is its fashion collaborations, which have been a cornerstone since the early 2000s, when it first forged its partnerships with Y-3 and Stella McCartney.<\/p>\n

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Of late, one of the company\u2019s most successful collaborations is with British-Jamaican designer Grace Wales Bonner<\/a>, who has created buzz in the fashion world through her Samba-focused product drops. \u201cIt\u2019s been a positive journey that has evolved with intention,\u201d Bonner said. \u201cThe partnership has allowed my work to reach a global audience and has supported the development of my love for footwear design.\u201d<\/p>\n

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But even as Gulden leads Adidas into a revival, industry insiders warn against repeating some of the company\u2019s past missteps.<\/p>\n

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\"Lionel<\/figure>\n

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\u201cHistorically, the brand has been far too European-centric. They have not focused on making shoes for the U.S. market,\u201d said Matt Powell, an adviser at Spurwink River and senior adviser at BCE Consulting. \u201cWhen they get a shoe that works here \u2014 Superstar, Samba \u2014 it\u2019s a big deal, but it\u2019s almost not intentional. It just seems to happen. What I hope to see happen is that Gulden does what he did with Puma and focuses product development on the U.S. market. If they get it right here, it could be a game changer.\u201d<\/p>\n

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This is especially important given the current weaknesses of Adidas\u2019 biggest rival, Nike, in the U.S.<\/p>\n

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\u201cOutside of the U.S., Nike and Adidas are relatively in parity in terms of share. In the U.S. is where there\u2019s a big gap,\u201d Powell said. \u201cConventional wisdom has been it happened because Nike was so good here. I\u2019m starting to come around to the alternate position, which is that Nike has such great share in the U.S. because Adidas was bad here. If Adidas can get it right \u2014 and I have confidence that\u2019s what\u2019s going to happen \u2014 we can see the landscape change dramatically.\u201d<\/p>\n

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Here, Gulden gets candid about leadership-style criticisms, avoiding the missteps of Adidas\u2019 competitors and the next steps in the brand\u2019s turnaround.<\/p>\n

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The conversation has been edited for clarity.<\/em><\/p>\n

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Both you and Adidas have been the subject of endless headlines since you took over, including a viral moment at the 2023 FNAAs calling out Nike. Is all press good press?<\/h2>\n

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 \u201cCertain press, especially the German media, seem to try to find something negative to talk about, so I\u2019m always advised to not say too much, but it is difficult for me. Sometimes I say something that turns out to be an issue for somebody. But I like to just speak the way I am; I never screen myself. Sometimes that creates some issues. That one at your event<\/a> was meant in a more playful way. When you think about Adidas just a year ago, [people said] everything was wrong. No innovation, no brand, no product, everything was bad. And now suddenly, everything that was bad is positive. I think that\u2019s why I can be polarizing in the press because sometimes it\u2019s difficult for people to manage this transition.\u201d<\/p>\n

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How do you grade the progress so far?<\/h2>\n

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 \u201cIn front of the consumer, especially with women, we have turned the ship because the Originals and lifestyle part of the business has become very popular. When you look at the Spezial, the Campus and the SL 72, these are the healthy sneakers in many cities already. I didn\u2019t expect that to happen so quickly, but when it happens quickly, it brings a better mood and builds better relationships. We can show our stakeholders fast that this is a great brand and it\u2019s up to us to build it so that the business growth is also sustainable.\u201d<\/p>\n

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You mentioned in a recent earnings call that North American sales are lagging six to nine months, but a cleaner inventory is helping. What\u2019s needed to get the region back into sales gains?<\/h2>\n

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\u201cWe\u2019re proud of the fact that we are down 41 percent in inventory and have been disciplined and cleaned up some old stock in the market. We have also helped many retailers clean up their inventory on merchandise that hasn\u2019t worked, especially in women\u2019s. But this movement is a bit delayed when you compare it to what\u2019s happening in Europe and Asia.<\/p>\n

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In America, to be a successful business, we need to connect to the men\u2019s market, we need to connect to the urban consumer and we also need to be \u2018more American.\u2019 I have said from Day One that the world is not one market where you can have the same recipe. You need to look at what the consumer wants, what influences them. And then you need to build that into your local plan. You do the same in Europe, you do the same in Asia, and the commonality is good. But the difference is also good and more targeted. There\u2019s no doubt that we need to be more American in the U.S. That\u2019s what we\u2019re trying to be. The recipe is easy, but the execution is always difficult. And we are in the middle of it.\u201d<\/p>\n

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\"Bjorn<\/figure>\n

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How are you building relationships with your retail partners?<\/h2>\n

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\u201cI really believe that Adidas is back to being one of the brands that retailers must plan with and work with for their buys now that the demand is there for the product. I had the task 14 months ago to make sure that these retailers are invited to the headquarters, that we give them samples, show them the product pipeline and make changes along the way. For me, that\u2019s the natural way of doing business. Adidas had drifted away from that for whatever reason, but now we\u2019re back and trying to be the best partner for the retailers.\u201d<\/p>\n

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You announced a new Champs-\u00c9lys\u00e9es store in Paris slated to open shortly before the Summer Olympics. What opportunities do the Games present to Adidas, and how does this store play into the strategy?<\/h2>\n

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\u201cThe Olympics really isn\u2019t a commercial event like the World Cup or Euro, where you\u2019re selling products. So young people from all over the world will come to Paris to compete against each other in, hopefully, a peaceful environment. Everyone wants to be in a party mood surrounding sports again. We have been isolated for a long time and there is a younger generation that hasn\u2019t experienced any of these major events because of the pandemic. But as for our new store, it is a place for us to showcase the brand. And we were very lucky to get a great location at the exact right time that our product lines are heating up.\u201d<\/p>\n

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There are some people that have called your leadership style \u201ca blast from the past.”  Is this accurate?<\/h2>\n

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\u201cThe comments you read are coming from ex-Adidas and ex-Puma people. I don\u2019t care. If they\u2019re ex, there\u2019s a reason why they\u2019re ex. And so far, I haven\u2019t lost anybody at Adi that I didn\u2019t want to lose. I\u2019m focusing on the core of the business. We make physical products for physical people. The principles are the same, the only difference is the tools. The retailers I worked with 30 years ago are the same, manufacturers are the same, countries or regions are the same, lead times are the same. I think I\u2019m the right guy for Adidas. [I won\u2019t be] glued to my chair if I feel I\u2019m not the right guy.\u201d<\/p>\n

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\"Bjorn<\/figure>\n

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What from your Puma playbook have you applied to Adidas?<\/h2>\n

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\u201cI\u2019m always looking for people who make the team better. And I don\u2019t like secrets. I like everything to be transparent. It doesn\u2019t matter who you are, you have access to what everybody else has access to. Being close to the consumer, more local, being quick when reality is changing \u2014 those principles are the same. The difference is the scalability of Adidas when you have something. It\u2019s bigger. I was caught by surprise 14 months ago when everything was negative. Now, in many markets, we have the hottest product. That\u2019s the enormous power of the Three Stripes. At Adidas, for whatever reason, people stopped making decisions. If we have a good shoe, we need to launch it. We had Samba, but didn\u2019t scale it. We had the Evo, the most innovative running shoe in the industry, but we didn\u2019t launch it because we were testing. You could ask the people who were there, but I feel it was a very passive culture. Now, it\u2019s alive. When you win, the mood is better, the campuses are alive, store managers are smiling.\u201d<\/p>\n

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Nike has been criticized for its lack of innovation. How do you avoid that?<\/h2>\n

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\u201cInnovation [isn\u2019t just] technology. Innovation is also how you rotate your franchises so they are perceived as being new. A year ago, we were criticized for not having running lifestyle, which was innovations like NMD and Ozweego \u2014 and the [Yeezy] 350 was drifting away. We briefed the running unit, Originals, Sportswear and said, \u2018You can work on new things in running that they haven\u2019t seen before.\u2019 We\u2019ve got six or seven projects out of that [effort] that will go to market. You will be surprised when you see shoes coming in the back end of this year, interesting new silhouettes that the market hasn\u2019t seen before. We also must remember that when you\u2019re bringing something perceived as being new, there\u2019s a risk. Marketing, distribution, price point is also part of innovation. I believe the critique of Nike<\/a> with innovation is also unfair. Nike has dropped a lot of innovation in the market.\u201d<\/p>\n

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\"Bjorn<\/figure>\n

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Nike CEO John Donahoe blamed remote work for its innovation problem. Do employees need to be in the office to be effective?<\/h2>\n

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\u201cNo. We have built the nicest campuses because people should like to be there, but we shouldn\u2019t force people to be there<\/a>. I like work from home as a tool to give people flexibility and increase quality of life. But I don\u2019t like the discussion that you should never be in the office, because we are a company that lives out of heat culture and a love for the brand. You cannot create that by only being home. We need people who are happy, motivated and love the brand. I have no problem if [an employee] wants to work from home because they just had a kid or they\u2019re having a difficult time. I also have no problem if people work from home on a Friday or Monday because it gives them a longer weekend. But I\u2019m not a fan of never being in the office. Adidas would not be Adidas if that were the case.\u201d<\/p>\n

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Adidas was once called out for its lack of racial equity in the workplace. Where does the company stand today?<\/h2>\n

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\u201cIf you talk about diversity, you need to look at the whole globe. My philosophy is you should try to have local management and teams mirror the local culture. And we need to make sure that regardless of what you are and where you\u2019re coming from, your background, you can go all the way to the top in our company. Our headquarters in Germany is the most diverse multicultural company in all of Germany, but when you look through the ranks, there\u2019s a time lag between where you want to be and where you are. When I started at Adidas [in the 1990s], it was only Germans and they were men. When you see the diversity now, we are basically 50-50 men and women, and we mirror most markets when it comes to background. Right now, we have Russians and Ukrainians in the office. [Their countries] are at war. We have Palestinian people and we have Israeli people. They are at war. You need to work with both sides, and this is difficult. But because we come from sport, it\u2019s natural for us to bring people together. We have Indians and Pakistanis playing cricket every Tuesday. They\u2019re always in conflict. It\u2019s natural for us to be multicultural, but we are not perfect. And we shouldn\u2019t be so afraid. Every time [diversity] comes up, people freak out. We should just talk about it. We try to have a dialogue with all groups and admit if something is not right, then fix it.\u201d<\/p>\n

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