In the United States and Korea, Crocs has experienced success with celebrity collaborations to fuel sales. Currently, Crocs has around 400 stores in the country. Moving forward, the company will renovate its stores, revamp its established Chinese partnerships, and find new partners. More recently, Crocs has closed several of its company-owned stores in China and streamlined its retail partners. Over the years, Crocs refined its distribution network and cut its product offering by 80 percent. The company’s five core markets are the United States, Japan, China, South Korea, and Germany. According to a 2014 interview with Rees, he said although the company had a presence in 90 countries, there were only five that really mattered. The next step was narrowing its product focus and geographic footprint. The company, which had more than 5,000 stock-keeping units (SKUs) at the time ended up with too much inventory.
When the Great Recession hit in 2008, Crocs was caught flat-footed. Streamlining Its Product Line and Retail PartnersĪt the height of its initial popularity around 2007–2008, Crocs grew wildly to keep up with demand, expanding into too many product lines, distribution channels, and markets. Now, the company must unravel these mistakes.
Today, Crocs are one of the most popular shoe brands among teens.Īccording to Crocs CEO Andrew Rees, the company has struggled to resonate with Chinese consumers because of mistakes it initially made entering the country. Generation Z consumers-those born between 19-present a valuable opportunity for Crocs because many of them are new to the brand and they have a tendency to influence other shoppers. Looking to China, Crocs plans to target affluent Gen Z Chinese consumers.
The company’s recent growth is concentrated in the United States.
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