The acquisition of popular streetwear brands like Supreme and Enyce by large corporations often leads to concerns among fans that these brands may lose their original allure and authenticity. When iconic streetwear labels become part of a corporate portfolio, there is a risk of diluting their unique identity and connection with their core audience.
According to VF Corp, parent company of Supreme, the streetwear label recorded revenues of $523.1 million USD in the fiscal year ending March 2023. This marked a notable decrease of $38.4 million USD compared to the previous year, falling significantly short of VF Corp’s target of $600 million USD. Furthermore, Supreme’s net income also experienced a decline, reaching $64.8 million USD, down from the previous year’s figure of $82.4 million USD.
Fans worry that the creative direction and design ethos of these brands may be compromised as they are integrated into larger corporate structures. The appeal of streetwear lies in its subcultural roots and rebellious spirit, which can be at odds with the mainstream approach often taken by big corporations. There is a fear that the brands may prioritize profit and mass appeal over their distinctive streetwear essence, leading to a decline in their cultural significance and exclusivity.
However, it’s important to note that not all acquisitions result in the loss of a brand’s luster. Some corporations have managed to strike a balance between preserving the brand’s authenticity while leveraging their resources to expand its reach. Success stories include the acquisition of sneaker brand Converse by Nike, where the brand has maintained its identity and continues to resonate with its target audience.
In conclusion, the acquisition of popular streetwear brands by large corporations can be a double-edged sword. While it provides opportunities for growth and expansion, there is a genuine concern among fans that these brands may lose their unique appeal and authenticity in the process. Finding a balance between corporate structure and maintaining the brand’s essence is crucial to ensure that the luster of these streetwear icons remains untarnished.
