Kanye cuts ties with the gap, stocks fall 3.5%, + the power of the black dollar

Kanye’s recent stand against the popular American retail brand Difference speaks to the larger issue of corporations exploiting the influence of black artists for the contribution of the black dollar.


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Kanye recently expressed his frustration with fashion companies Difference and Adidas publicly. Since then, he quickly severed ties with Difference.

To that end, this whole ordeal begs a larger question: Why do black consumers continue to support companies that don’t care about our common needs?

Big corporations are using hip-hop artists and other creators to attract consumers to dramatically increase their profit margins, and the black dollar remains a hot product.

In 2020, Forbes appointed Travis Scott “America’s Brand Whisperer.”

Scott has leveraged his cultural influence to win the ears of American corporate brands like Nike, epic games, McDonald’sand more.

While the “Highest In The Room” rapper has earned millions from these endorsements, his fan base/fan base has helped boost each of these companies’ annual revenue to the billions of dollars.

Fans can remember when the “Icy” rapper Saweetie also used his following to make a deal with the McDonald’s franchise. While the “Saweetie Meal” with a side of barbecue sauce might have been tasty, it also enriched the franchise.

Blacks remain the second largest group of consumers, with enormous purchasing power.

According Neilsen, Black culture has a strong impact on the entire American population. Their 2021 African American Consumer Report said:

“As Black Americans continue to stream videos, listen to radio and podcasts, and buy black, they continue to lead the conversation and stay connected through social media, which is having an impact without precedent on brands and what consumers watch, buy and listen to. .”

Despite the cultural influence of these artists on the black community, the circulation rate remains low, which makes American companies richer.

Today the Yeezus the rapper jumped on a live interview with CNBC settle his contract with Differencewhose shares fell 3.5% after the news broke.

He spoke of his desire to work with the brand early in his career, introducing high-quality yet affordable products to consumers.

After three years of trade talks before the Gap deal, Ye was ultimately not allowed to comment on pricing. The company unilaterally priced its designs above their normal price.

He also discussed several ways the big company ignored the terms of the contract:

“They did pop-ups and I signed with them because in the contract they said they were going to shop, and they just ignored us.”

Ye has also used his connections to fashion houses like Louis Vuitton and Balenciaga to design the collection, expanding the brands’ business repertoire.

The donda the rapper ultimately felt undervalued by the company.

“Sometimes I would talk to the guys, the heads held high, the executives and it was like I was on mute or something.”

Kanye takes his business very seriously.

Maybe it’s time for Kanye to do a Tyler Perry and focus on building his own fashion house.

Perry has made no secret that his wealth was created primarily through support from the black community.

Perry owns the rights to all of his work and is proud to have never had to finance or sell ownership of any of his productions, including hit television shows, plays, movies and now his billion dollar studio at ATL.

What would the world be like if the black community only supported each other?

What black-owned businesses do you support?

James T. Quintero