Tuesday, March 5, 2013

Crocs: Here to stay?

5 years ago, the shoe manufacturer Crocs was a huge success with their new and different slip-on rubber sandals, at least in Norway. The possibility of seeing Crocs on the feet of workers within the health sector was overwhelming. About a week ago, Crocs launched their new product line and the future of their company seems to be harder to predict than ever. This is a huge step and probably a “make or break” for Crocs. The variety of shoes they offer today range from clogs to sneakers and boots.




The classic Crocs seemed to be just goofy looking clogs, but after a look into the structure of their shoes, it is obvious that these shoes have a lot more to offer than just a different shoe. For instance they are cheap, very comfortable when worn for a longer period of time and are claimed to be odor-resistant.

It seems like a common business model and marketing strategy these days to promote companies as very dedicated towards humanitary actions. Especially in the shoe industry where the cost of producing certain types of shoes seems to be pretty inexpensive. Producing shoes made out of durable and low cost materials often derived from sustainable natural resources is a common practice nowadays. From a marketing point of view and gaining long term customers with a high brand loyalty, this is the way to go.

As well as promoting their technical features, Crocs business model is not unlike Tom’s. They have donated more than one million pair of shoes to people less fortunate all over the world. As well as donating new shoes, they have also created a website exclusively for their customers to donate crocs that they are not using anymore.

Whether Crocs remains a socially awkward underdog or explodes into a worldwide, socially accepted phenomenon remains to be seen. Speaking from a slightly personal point of view though: Funny or humorous does not translate into fashionable or elegant within a long term perspective of business.
 
                                                    

4 comments:

  1. Interesting story about Crocs. I'm still amazed that these ugly-looking shoes have become so popular. Apparantly they made $1 billion revenue last year. Just one question: why did you post a photo of Chucks? That does not fit the story.

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  2. Thank you, their success remains a mystery to most of us I think. I posted a picture of the shoes I was wearing at the time, because we had talked about doing that within the team and we thought that it might add a cool touch to the blog.

    I think the Converse Allstars have a pretty unique/weird design too. They have been extremely successful for decades and I do not think Chuck Taylor and his team thought they would be as successful as they have for such a long period of time. But apparently the Chucks are timeless, so I wanted to put it out there that even though they have a interesting feel to them, weird can be good and successful regardless. When I look back at the post though, I can see that it didn't really come out that way.

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  3. In the beginning when you say "make it or break it" with the new ideas that Crocs have, do you think they will be successful and be on the "make it" side or do you think it won't go in their favor?

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  4. Thanks for asking Jordan, that is a very good question. The reason why I frased it like that is because it is very hard to predict. Personally I thought that it looks like they are going in the right direction. The only thing that remains to be seen is if the market for their products is actually there and if consumers are interested in buying them as they are very "unique". It does not seem like they are doing to hot according to their stock though.

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