Hollywood stars have managed to pull an ugly, outdated sandal out of limbo and turn the company that has made them since 1775 into a company valued at nearly $10 billion, with shares just listed on the stock market New York Exchange.
Posted at 7:57 p.m.
The Birkenstock story is a good example of the power of stars and the influence they can have on economic activity. It was enough that Leonardo DiCaprio, Gwyneth Paltrow and a few other celebrities appeared in Birkenstock and the brand began a glamorous existence with a new owner, the luxury king LVMH, who bought it in 2021.
PHOTO ANGELA WEISS, AGENCE FRANCE-PRESSE ARCHIVE
Birkenstock sandals
Artists are important economic players, but their contribution to growth is rarely translated into numbers. We know, for example, that in her time, Céline Dion boosted the economy of Las Vegas and supported specialized SMEs here in Quebec.
When it comes to numbers, phenomenon Taylor Swift starts by putting together a bunch of them. The crowd favorite is on track to surpass Elton John as the top 10 most popular touring act of all time, with earnings that top $1 billion for the first time and could perhaps even reach $2 billion.
The impact of Taylor Swift’s popularity goes far beyond record sales and show tickets. The artist inspires such enthusiasm that she has helped create an entire ecosystem of commercial activity that supports many people.
In the cities where his tour ends, the Wall Street Journal recently reported, bakeries are baking donuts decorated with the themes of his songs and selling them for $65 a dozen or $6 each. Since Swifties — die-hard Taylor Swift fans — aren’t a big fixture at bars, some bars are branching out into other activities, like running shuttles to transport fans to the city where the star will be performing. A Nashville museum that was hastily organizing a “Swifties”-themed exhibit saw the highest number of visitors in its 65-year history during the singer’s visit.
Taylor Swift even achieved the feat of having her name mentioned in a Federal Reserve report that noted a sudden upturn in Philadelphia’s economy during her tour. The city’s hotels in particular had their best month since the pandemic.
Hotels, restaurants, airline tickets and related products – all these activities accumulate and leave a mark on official statistics. Specialized companies already estimate that Taylor Swift alone could increase the gross domestic product (GDP) of the United States by $5 billion in 2023.
Bloomberg Economics forecasts that the activities of Taylor Swift and Beyoncé, whose tour is also phenomenal, as well as the success of the Oppenheimer and Barbie films, boosted the GDP of the world’s largest economy by 0.5% in the second quarter.
No, it is neither Taylor Swift nor Beyoncé who can prevent the American economy from falling into recession, but we can still recognize their contribution to the country’s economic growth.