Crocs's Success Tips Reveal The Brand Of Shoes And Clothing In China

Crocs is a design, R & D, production and sales company. Shoes and clothing And accessories businesses. Footwear products dominate the company's products, and sales of footwear products account for 94.6% in 2011. The most important feature of the company's footwear products is the use of a functional material called Croslite, which makes shoes comfortable and has high friction coefficient, skid resistance, non decolorization, and extremely lightweight. Since its main Crocs shoe product in 2002, the company has achieved rapid growth. By 2011, the company's revenue has exceeded 1 billion US dollars, and it has taken 22 years to achieve this amount of Nike.

The development of the company has gone through three important stages.

(1) from 2002 to 2007, the company seized customers' extensive acceptance of cave shoes, and rapidly expanded its scale and expanded rapidly. In 2006, the company successfully went public. 2006 - 2007, the company's share price rose to 444%.

(2) 2008-2009 years, the outbreak of the financial crisis, coupled with the proliferation of "cottage shoes", the company's continuous and rapid growth momentum for many years in 2008 changed, net profit in the current huge loss of $185 million, the stock price fell 76%, once on the verge of bankruptcy crisis.

(3) from 2010 to date, through timely reduction of expenditure and adjustment of business strategy, the company successfully reversed the crisis. In 2010, its revenue grew again and its net profit turned into deficit. In 2011, the first time in the history of revenue was more than 1 billion US dollars.

The company has stepped out of the financial crisis and has resumed its growth mainly through the following four important initiatives:

(1) resolutely clean up inventory. For a serious backlog of inventory, the company takes measures such as selling to discount stores, selling through outlets, warehouses, donating to charitable organizations, and actively helping distributors to reduce inventories. By 2010, the backlog of stockpiles had basically been digested.

(2) focus on core business and enrich product line. In addition to constantly updating the style of the cave shoes, the company has also launched canvas shoes, casual leather shoes, golf shoes and even high heels.

(3) integrate supply chain to enhance efficiency. The company has taken measures such as reducing fixed assets, reducing brand names, increasing the proportion of direct distribution products from factories to wholesalers and direct outlets, and implementing more disciplined wholesale policies.

(4) continue to increase investment in retail business, increase direct channel and increase network based. Marketing Management 。

At present, domestic listed companies do not have a complete analogy with Crocs, but we believe that the history of Crocs brand development has the following important implications for the development of domestic brand clothing enterprises.

(1) flexible and efficient R & D mode focusing on brand characteristics is the prerequisite for brand evergreen. For the local brand clothing enterprises, the enhancement of the R & D capability in the future will highlight the differentiation and refining of the products and strengthen the unique characteristics of the brand, which is an important foundation for sustainable development and further development.

(2) maintaining a certain proportion of self production is one of the effective ways to maintain brand competitiveness. In the future, for many local brands, it is probably one of the important ways to achieve product differentiation and increase market reaction speed to increase the proportion of self production.

(3) direct business expansion is very important for brands to break through the bottleneck period of growth. In the initial stage of brand development, wholesale Franchise mode It is more suitable for brand scale and brand influence. However, after the brand reaches a certain scale, whether the direct business can expand effectively is very important for the dynamic growth of the brand.

(4) "exclusive and refined" tend to have more brand vitality than "big and full". For local brand enterprises, after setting up their own competitive position in a certain field, they will continue to strengthen and deepen their business development in the later stage, so that they can always maintain their unique competitiveness.