Thursday, July 16, 2009

Crocs about to go extinct

Free falling from a 2007 fiscal year profit of $168.2 million to 2008 loss of $185.1 million, Crocs are nearing extinction.

In a classic example of too much, too fast, the company expanded in multiple locations worldwide to meet sales demands - 100 million pairs in 6 short years. In a waning economy, and perhaps total market saturation, sales have plummeted. Factories and shipping locations that were shoring up now stand empty.

John Duerden replaced Ron Snyder as CEO this year, and believes Crocs have a revival in niche markets for medical, catering and people with troubled soles. It is rumored George Clooney will be on board to rep the shoes.

Does the company really stand a chance? Growing too fast is almost more deadly than no growth.

The image overhaul may not help. One reason Crocs went where others did not is that they were able to entice men and children to buy. I've seen this new style on and have to admit, they were pretty attractive. But decidedly feminine.

By fall, Crocs, with the popularity of Beanie Babies, could just be another chapter of plastic shoe history to add to Jellies. Do you wear them? Would you miss them?

5 comments:

matthew said...

I liked Crocs before they became popular around the U.S. They were in Vermont early and I fell in love w/ them--way before George W. Bush was spotted w/ them. And he wore them w/ socks....

Solessence said...

Thanks for the comment matthew. I think that is one of the strongest factors Crocs has going - men support the cause.

I think if they stick true to the croslite and put out attractive designs like the above they will expand their market. It will take some creative financing to keep things going though.

MizzJ said...

Ew sorry but I cannot wait for Crocs to die a fiery and final death!

Solessence said...

I'm deeply saddened to find the new CEO of Crocs posted a reply on The Cut instead of here :( Didn't we best The Cut pub time? ha!
-----------------------------------
At Crocs, we sell comfortable, affordable shoes in a wide variety of appealing styles for men, women and children. This is a good business to be in at a time when New Yorkers are watching their budgets, and we’re confident in the future.

Critics who say we’re are a one-shoe company couldn’t be more wrong. We offer more than 120 styles of casual footwear, including sandals, boots, heels, wedges, flats and functional footwear for people who work on their feet or who have foot or back problems. Don’t take my word for it – see the variety of styles we offer for yourself by visiting our New York retail store at 270 Columbus Avenue between West 72nd and 73rd, or our web site.

There are more than 100 million consumers in 125 countries who love our product. The Crocs brand is only five years old, and already it’s almost as well-known as Nike and Adidas. It’s an icon and whether people love it or hate it, they talk about it.

Regarding Mr. Clooney: We’ve talked with him about supporting our efforts to provide footwear for children in Africa and other impoverished parts of the world. We respect him as a humanitarian, but there is nothing to announce at this time.

Crocs shoes are perhaps the perfect product for a world in which value and simplicity are replacing avarice and over-consumption. We appreciate the support of our loyal customers, retailers, investors and employees in New York and around the world.

John H. Duerden
President and CEO
Crocs, Inc.

Report

By johnduerden on 07/16/2009 at 6:09pm

Daphne said...

die crocs die. i just think toe jam when I see them

 
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