Excellent Insurance: Crocs'S Road To Diversification

Walton business school marketing professor Berg and others have done an interesting research.

They studied the names of Americans and French people who preferred children for the past one hundred years.

According to the survey, the sooner the parents are welcomed by their names, the faster the fever is, and they conclude that red goods are in danger of falling.

However, in the past few years, Crocs's "cave shoes", which had exploded, escaped the collapse of their fortunes with their diversified development.

In 2002, Crocs launched the first anti slip and non decolorizing Beach outdoor sports shoes. The "ugly shoes" with round head and vents with breathable holes were rapidly becoming popular around the world in the form of "full featured fashion shoes" and the 200 million largest fund in 2006 was the largest IPO in shoe industry.

Just as Crocs became popular, some problems began to highlight.

On the one hand, because the Crocs material is very wearable, the life of a pair of "ugly shoes" can last as long as ten years, which greatly reduces the demand for repurchasers. On the other hand, there is a lot of "market".

"Not only snatched the market share of Crocs, but also made the whole consumer market rapidly saturated in the short term. At the same time, the stereotyped design also made it difficult for consumers to pursue their individuality.

Take the Chinese market as an example.

Ocean Minded, You By Crocs have been launched successively.

Crocs Work

Shoes and other series of brands reported publicly that in 2011, when the European debt crisis shrouded, Crocs revenue increased from $789 million 700 thousand in 2010 to 27% US $1 billion.

Since April this year, the Crocs flagship store has also ushered in a number of new members Crocs casual wear. They are light, waterproof and colorful, and can be folded into a small bag, fully in line with Crocs's leisure, comfort and playful characteristics.

However, this is not to say that the road to diversification is excellent insurance.

On the pluralistic Road, there are too many losers, who have been the two kings of CCTV, and have developed six big industries in the face of difficulties.

The diversified development of single product enterprises seems to be a dangerous game for Li Xianguo, a professor at the Business School of the NPC.

"Specialization and diversification are two different paths. Specialization has advantages in product share, brand effect, market control ability and cost control. Just like Galanz microwave oven, tens of millions of products, a strong trade barrier has been formed.

And when the market is saturated, diversification is the inevitable path.

But the road of diversification of specialized enterprises is a road full of risks. It needs strong backing of funds, and it needs to control product positioning and marketing well, and face many unknown plight.

Judging from the diversification of Crocs, it is relatively safe. Canvas shoes and casual wear are similar to cave shoes in terms of consumer positioning, and they also enjoy a common corporate reputation.

This point seems to be confirmed in the Crocs China regional CEO Li Ju. When interviewed by the media, she said that the Crocs product label is "leisure, comfort and fun". This is the DNA of Crocs brand, and the only standard of product expansion. "The products we develop will continue such DNA, which is a road we have to take.