Porous Cave Shoes Meet "Frozen" Period Blackstone Group To Invest Two Hundred Million Dollars To Save "Fate"

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< p > in recent years, Crocs seems to have been out of fashion for a long time, whether it is its trademark, challenging the traditional aesthetic a href= "http://sjfzxm.com/news/index_s.asp" > cave shoes "/a" or its awkward stock on Wall Street.

Compared with the word "fashion" and "fashion", people now prefer to imagine children, gardeners or nurses wearing "a href=" http://sjfzxm.com/news/index_s.asp "Crocs" /a.

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< p > > a href= "http://sjfzxm.com/news/index_s.asp" > trend < /a > the retreat of heat also spread rapidly to Wall Street investors. Crocs's share price dropped from 69 US dollars at the highest point in November 2007 to 1 US dollars in November 2008.

In the next few years, Crocs shares are still in the doldrums. Since early 2013, the company has lost 10% of its market value.

However, the market has recently begun to take an optimistic view of the company. After the a href= "http://sjfzxm.com/news/index_s.asp" > private equity fund < /a > the giant Blackstone (Blackstone) group announced its investment of 200 million US dollars as its major shareholder.

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< p > Crocs is a good investment? Can it change fate in 2014? Crocs needs time to change herself.

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< p > < strong > detonation tidal current < /strong > < /p >

< p > > a href= "http://sjfzxm.com/news/index_s.asp" > Fashion Circle < /a > the definition of beauty is sometimes elusive. The clumsy appearance of Crocs shoes resembling slippers and full of holes is not consistent with the traditional definition of beauty, and then they burn in fashion circles.

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< p > 2003, Crocs has set off a sweeping wave that has swept the world. This kind of hole shoe made of special material with skid resistance is regarded as fashionable a href= "http://sjfzxm.com/news/index_s.asp" shoes.

Driven by this wave of shoe craze, in February 2006, Crocs listed on NASDAQ and set the highest share price on the first day of the first public offering of footwear companies.

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By P, by 2007, Crocs's sales revenue was 72 times that of 2003, while net profit had increased by more than 1800 times. During this period, Crocs will rely on the balance of business in the US market to the international market for the past 90% or more.

The rapid growth of Crocs is beyond the reach of traditional footwear brands, which may take more than a decade to achieve such sales figures.

In fact, the development curve of Crocs can not be explained by the life cycle of general products.

According to Wang Gao, Professor of marketing at CEIBS, Crocs's products of cave shoes are upsurge products, which is a fashion that is aggressive and can soon attract public attention.

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The life cycle of P products tends to be shorter, once it satisfies the curiosity and needs of human beings (the perceptual components are far too rational), and the peak demand that they can achieve is the product of rational demand.

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Less than P, there were Wall Street investors who followed the trend. In that year, Crocs's share price reached a peak of nearly 70 dollars.

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< p > < strong > dramatic regression < /strong > < /p >

< p > somewhat ugly "a href=" http://sjfzxm.com/news/index_s.asp "hole shoes < /a" has created a sales legend, but this legend did not go on, on the contrary, everything changed dramatically.

Crocs's share price plummeted in November 2007, leaving only about $1 a year after a year.

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< p > Crocs what happened? During this period Crocs announced huge losses and laid off 2000 people, and the market once said that it might not be able to sustain bankruptcy.

Although the financial crisis erupted in the United States brought people to their pockets, none of the shoe brands were like Crocs.

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< p > "boom type products can rapidly trigger demand, but this popular demand has a larger perceptual component and a lower sustainability. If the demand for a product is unsustainable, it will never bypass the fate of extinction."

Wang Gao pointed out in an interview.

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< p > Crocs certainly failed to circumvent such a fate. Under the catalysis of "a href=" http://sjfzxm.com/news/index_s.asp "financial crisis < /a > People's rational consumption environment, the recession of Crocs product boom is coming soon.

In 2008, Crocs received a total loss of $185 million for the whole year. Gross profit margin dropped sharply from 32.4% in 2007 to 32.4%, and total revenue in 2009 dropped 10.5% compared to the same period in 2009.

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< p > in addition to the crisis of weak sustainability of demand, Jiang Jiongwen, a professor of marketing at CEIBS, said in an interview: "the crisis of Crocs is still relatively simple in product line, and there are no other extended products besides cave shoes.

Though comfortable, it is an extremely casual footwear and has no broad applicability to traditional casual shoes.

That is to say, there are not many occasions to wear hole shoes, and once the freshness is gone, consumers will not have the intention to repeat purchases.

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< p > < strong > diversification, breaking through < /strong > < /p >

< p > Crocs is not not aware of its own crisis.

In 2007, Crocs launched a diversified development strategy. It acquired Jibbitz, an environmentally-friendly shoe maker, specializing in the production of accessories for Crocs shoes.

But the acquisitions around these diversified developments have not been fruitful. On the contrary, the big deal of mergers and acquisitions has made the Crocs's book profits fall sharply.

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< p > in the final analysis, the failure of these diversified development strategies of Crocs lies in their fact that they are still around the products of cave shoes, and have not changed the fact that consumers' demand for them is a fact of perceptual rationality, which is a fact of popular demand.

"If we want to break through the difficult position, we must return to the root cause, that is, the value of products will change to consumers, and return to the direction of traditional shoes making, because rational demand is sustainable.

If we always launch products that can cause sensational effects, the life cycle is relatively short, and the demand of consumers is unpredictable, the risks of enterprises will be relatively large.

Wang Gao thinks.

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After P, Crocs constantly adjusts the direction of diversification. Crocs tries to increase brand resilience and re squeeze into the fashion layout.

But as Wang Gao said, "to go back to the traditional direction of the traditional footwear, the sustainable demand can go far, but the challenge is whether we can do something distinctive and differentiated compared with our competitors, and we can not bring huge breakthroughs in a short time."

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< p > > a href= "http://sjfzxm.com/news/index_s.asp" > Blackstone < /a > may be interested in Crocs's ongoing European business pformation and fast-growing Asia Pacific business, but Crocs still needs time to change itself.

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