Trapital Podcast Summary: "The Steve Jobs of Gap?"
Host: Dan Runcie
Date: July 3, 2020
Episode Focus: The risks and potential of Kanye West's landmark partnership between Yeezy and Gap Inc.

Episode Overview

In this insightful episode, Dan Runcie breaks down Kanye West's 10-year Yeezy partnership with Gap, analyzing its implications for both the Yeezy brand and the struggling retailer. Runcie explores Kanye's journey through the fashion industry, the dichotomy between hype-driven exclusivity and mainstream appeal, and the steep challenges of turning Gap into a cultural powerhouse. The analysis draws parallels between Kanye’s ambitions and Steve Jobs’ return to Apple, questioning whether history can repeat itself in retail fashion.

Key Discussion Points & Insights

1. Why the Yeezy-Gap Deal Matters

• The deal marks a full-circle moment, as Kanye worked at Gap in high school and long expressed a desire to collaborate with the brand.
• Fan reactions are split:
  • Old-school fans recall his song “Spaceships,” referencing his Gap experience.
  • Hypebeasts lament Yeezy's transition from scarce, exclusive products to mass-market availability.
  • Runcie: "The sneaker lost its allure as it slowly became a mass consumer product… The Yeezy brand is a long way from the infamously limited Red Octobers." (02:04)
• Core question: Can Yeezy maintain its cultural cachet while chasing mass market ambitions through Gap?

2. Kanye’s Fashion Industry Journey

• Nike Era:
  • Kanye initially collaborated with Nike, seeing it as a dream come true:
  • Quoting Kanye (Nike Press Release, April 2009): “Growing up, we looked forward to the release of the new Nikes the same way we would an album by our favorite artist… a dream come true and a great experience.” (03:23)
  • Desiring a Jordan-level royalty deal (5% royalties) but denied due to not being an athlete.
  • Famous Hot 97 interview (2013): “I’m a performance athlete who goes to the garden and plays one on no. 1.” (04:16)
• Louis Vuitton (LVMH) Rejection:
  • Similar struggles for leverage and access; Bernard Arnault didn’t take Kanye’s calls.
  • Runcie summarizes: "Hunger can't close deals… Replace LVMH with Nike and replace Arnault with Mark Parker. It's the same script, different company." (05:28)
• Adidas Partnership:
  • Adidas offered Kanye royalties and creative freedom.
  • Adidas wanted relevance in North America; Kanye needed international distribution—mutually beneficial.
  • Results:
    • Yeezy became the ninth highest-selling sneaker in 2018, outselling Nike’s Air Force 1, earning $1.3 billion in 2019.
    • Runcie: "Sneakers were no longer fast fashion. They were widely accessible… The increased supply puts sneakerheads… in a bind. They don't gush over readily available products. The chase is part of the allure." (07:45)

3. The Risky Shift to Mainstream with Gap

• Kanye wants to design a “perfect hoodie” for the masses, inspired by Costco’s approach:
  • Kanye to WSJ (March 2020): “I like Costco as an idea. I like Walmart too.” (09:08)
• Gap is a logical channel for affordable, mass-produced Yeezys but faces major retail headwinds.
• Gap’s struggles:
  • Declining since the '90s.
  • Reliance on Old Navy and Athleta for revenue.
  • Discount culture threatens Yeezy's premium brand.
• Runcie asks if Yeezy Gap can be like Martha Stewart's Kmart line, which hit $1B in sales but still couldn't save Kmart from bankruptcy.
  • "At its best, Kanye extended the life of a department store that got trapped between Walmart, Target and its never ending Blue Light specials." (10:55)
• Kanye’s vision likened to Steve Jobs’ return to Apple—but Runcie is skeptical:
  • "In Kanye's mind, this is his Steve Jobs 1997 return to Apple moment… But the $60 hoodie can't match the impact of the iPod or the iPhone." (11:26)

4. Tension at the Heart of Yeezy

• Yeezy thrives on hunger—from Kanye’s drive, customer desire for exclusivity, mass hopes.
• With the Gap partnership, the roles are reversed:
  • The brand and its founder have arrived.
  • Gap is now the hungriest party, hoping Kanye can revive its fortunes.
• Runcie closes: "Maybe the real dream was the journey it took to get to this point." (11:55)

Notable Quotes & Memorable Moments

• Kanye on Nike collaboration: “Growing up, we looked forward to the release of the new Nikes the same way we would an album by our favorite artist. The opportunity to collaborate… has been a dream come true.” — Kanye West (03:23)
• On sneaker culture: “The chase is part of the allure… On All Falls Down, Kanye rapped, ‘then I spent 400 bucks on this just to be like, nigga, you ain’t up on this.’ That’s the same mentality etched in the brain of every Yeezy loyalist.” — Dan Runcie (08:10)
• On Gap’s retail strategy: “Gap is a perfect place for $60 hoodies stacked on tables like loafs of bread. But Gap is also a place where $60 hoodies get placed on 60% off clearance racks on President’s Day.” — Dan Runcie (09:40)
• Paralleling Jobs/Apple: "In Kanye's mind, this partnership is his Steve Jobs 1997 return to Apple moment. … But the $60 hoodie can't match the impact of the iPod or the iPhone." — Dan Runcie (11:26)
• Summary insight: “The only one hungry is the struggling retailer that hopes its former employee can turn the company around.” — Dan Runcie (11:45)

Timestamps for Key Segments

• 00:00–01:00 — Episode introduction; setting the stage.
• 01:00–02:40 — Context: Kanye’s history with Gap and fan reactions to the deal.
• 02:40–06:00 — Kanye’s fashion journey: Nike, Louis Vuitton, lack of leverage.
• 06:00–07:30 — The Adidas partnership: mutual growth, culture, and Yeezy’s evolution.
• 07:30–09:30 — Transition from hype culture to mass market, the dilemma of supply and demand.
• 09:30–11:20 — The risks of partnering with Gap; comparison to Martha Stewart/Kmart and Steve Jobs/Apple.
• 11:20–12:00 — The fundamental tension: hunger, exclusivity versus mass success.
• 12:00–12:10 — Closing thoughts.

Conclusion

Runcie’s analysis is a compelling look at the crossroads of culture, commerce, and ambition that defines the Yeezy-Gap deal. Can Kanye victimize Gap’s legacy woes or is he risking his brand’s allure by going mainstream? The existential questions of hype, accessibility, and reinvention anchor this episode—and leave the listener pondering if Kanye, or anyone, can truly be “the Steve Jobs of Gap.”