“Sportico.com Reports How Lionel Messi’s Brand Illustrates that Celebrity Aspirations can Turn into Business Challenges”

MGO Global, a company co-founded by Ginny Hilfiger and Tommy Jeans, has one of the world’s most famous athletes, Lionel Messi, on board. Although MGO experienced a successful IPO, skyrocketing within two hours of trading, its shares plummeted and lost over 93% of its value. Catherine Weiss, a professor of fashion at Lasell University, said that it is difficult to predict consumer behaviour or trends, even for those who have the answer. The MGO’s prospectus plan is to create a product and apparel brand by utilising its platform for sourcing, marketing, and sales, working with their valued brand partners.

The market’s reaction revealed the difficulty of converting sports personalities into sales outside of stadiums. Adidas failed with its popular Ivy Park collaboration with Beyoncé, but had success with Kanye West. MGO’s co-founder, Maximiliano Ojeda, said the recent IPO funding proves that the company is moving from a relatively emerging stage to a fully-fledged world-class company. Their business covers clothing, outerwear, home textiles, and accessories, excluding sports-related clothing and equipment and Messi’s signature reproduction.

The fashion industry is currently suffering from celebrity-brand overload. Companies are flooding the market with collaborations with athletes and celebrities, which Weiss described as a “collaboration nightmare.” Although celebrity brands create significant growth potential, it can also create issues for manufacturers if celebrity brands stop working or collapse. Weiss explains that the fashion industry involves having “no equation,” making it difficult to figure out what resonates with consumers.

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