The Popular Click Of Carlo Has To Close Shop.

Although the Chinese market is still full of expectations, Crocs, once popular with cave shoes, is now forced to close its stores in the Chinese market.

The Beijing Commercial Daily reporter learned from the relevant head of China's headquarters of Carlo. It has spread to the Chinese market since last year's global launch. Although the number of specific outlets has not been disclosed, the Chinese market, as the most important position, has long been unable to escape after the Asia Pacific market plunged.

Carlo pointed out that the Chinese market has no loyalty to any product, causing the Asia Pacific market, which is one of the most important markets of the company, to face suffering. But in the industry, it is the key to the development of shackles.

It is understood that as of the end of the three quarter of this year, it launched a total of 557 stores worldwide, a year-on-year net loss of 28.

To strengthen core market business, Carlo said that some stores in vulnerable markets such as China will continue to streamline.

This means that the Chinese market will continue to encounter a closed shop crisis.

In fact, for Carlo, the decline in performance and net profit losses are not the first time.

After the decline in performance, this popular company has made many efforts, but the results of several pformation are not satisfactory.

The recent days of Crocco, a hole shoe manufacturer, must be very sad.

In addition to declining performance, the Chinese market, which is the most important position in the Asia Pacific region, is also showing signs of weakness. As a result, the restructuring plan launched last year has spread to the Chinese market, resulting in a direct result.

The news was confirmed by relevant officials of China's headquarters in Carlo.

The person in charge only said that customs stores were part of normal business adjustment, but did not disclose the number of specific outlets.

Although the Beijing Commercial Daily reporter failed to learn the exact figures, he learned from the clerk of a loco store in Beijing that the hole shoe had not been sold well.

"At the most time, we sell dozens of pairs a day, and now we can sell two pairs a day."

The shop assistant said.

In the latest three quarter earnings report released by Carlo, the company has also focused on the Chinese market.

It is reported that its revenue is $274 million 100 thousand, less than the $278 million expected by the market, down 9.4% from $302 million 400 thousand in the same period last year, and a net loss of $27 million 776 thousand in profit, far less than 12 million 9 thousand US dollars in the same period last year.

Carlo pointed out that the Chinese market has no loyalty to any product, causing the Asia Pacific market, one of the most important markets of the company, to suffer.

In the three quarter, Asia Pacific market revenues plunged 13.1% and fixed exchange rates also fell by 3.5%.

In contrast, the European market dropped by 17.4%, but the fixed exchange rate increased by 1.3%, while the North American market fell 2.2% in the three quarter, while the effect of exchange rate edged up 0.6%.

In 2006, Carlo shares listed on NASDAQ and set the record for the highest share price of the footwear company IPO on the first day.

It was also in that year that Carlo entered.

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The cave shoes with anti-skid, antibacterial and portable properties have been well received when they enter the market.

In 2007, the company valued at $6 billion.

However, the popularity of this fashion is coming fast, and with the popularity of the Chinese market, the loco shoes of Carlo's decline are fading away.

In order to boost the market, the same year, Carlo began its first pformation.

The strategy focused on upgrading the hole shoe and began to set foot in the sports apparel business.

The company has acquired Jibbitz, SamanthaBryan design companies and other enterprises specializing in the production of decorations for clocking shoes, allowing the cave shoes to be adorned with clothing and accessories, such as casual sportswear for adults and children.

However, this series of measures failed to keep the popularity of cave shoes.

In 2008, a single type of cave shoes appeared unsalable in the Chinese market and a large backlog of stocks. The team then began the second pformation: snow cave shoes, expand product lines, and open diversification strategy.

The so-called "snow storage" refers to the use of hole shoes as bait, placed on the inside of the shelf, so that consumers will first contact with other products of Crocco when they enter the store.

At the same time, the company has launched OceanMinded, CrocsWorkShoes and other brand names in China, including high heeled leather shoes, slope heels and sports shoes.

Leather and boating shoes.

However, these new categories were not recognized. In 2009, Carlo. Com had its first big loss since listing: $184 million.

Today, the valuation of Carlo has dropped from $6 billion to $1 billion 300 million.

According to the insiders, the rapid expansion of Carlo's products in the Chinese market and the miscalculation of its copycat products are the main reasons for its failure.

Yang Dayun, President of UTA Fashion Management Group, told the Beijing Commercial Daily that Carlo's product was acquired by a product in the short term. But with the trend of this trend, consumers will soon become bored.

In addition, the attributes of a single product in the two extension process, want to get consumers and market recognition more difficult, "after the hole shoes are not favored,"

To extend the product line to extend the product's comfort and lightweight attributes to other categories of the group, it will only make it more difficult for consumers who are bored with holes shoes to accept it.

In addition, the market for other types of goods has been difficult for Crocs to break through in the Red Sea because of its long turnover on shoes.

In 2012, Carlo's loss was $3 million 607 thousand, and the net loss increased to $66 million 933 thousand in the four quarter of 2013.

In 2014, because of its poor long-term performance, Carlo had to launch the global strategic reorganization plan.

The content of the third pformation is simple: close shop.

Carlo will close or restructure the world, especially 75-100 of the 600 direct outlets focusing on weak markets such as China, and dismiss 183 employees (3.6% of the total staff), and substantially reduce product lines, reduce the original 350 product lines by 30%-40%, while reducing direct investment in small markets.