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    The Success Of Crocking, A Shoe Maker, Is "Catching Up With Fashion."

    2016/8/5 10:36:00 46

    Cave ShoesCrocsProducts

    Hit the nail on the head Crocs Manufacturer Crocs (Crocs) launched last year. product The revitalization process has been hit hard in the past two quarters, but sales and profits have not been ideal. According to the latest financial data of Carlo, the income in the two quarter of this year dropped 6.3% to 323 million 800 thousand US dollars, less than the market and its own expectations. Because of the difficult retail environment and the slower recovery rate of Chinese market, Carlo's annual sales are expected to regress. In just nine years, Carlo's hole shoes experienced a spanformation from red globe to overcast.

     Crocs

    Continued decline in performance

    In the two quarter of this year, Carlo's income fell 6.3% to $323 million 800 thousand compared to the same period last year, less than the $348 million 500 thousand expected by the market and the 340 million -3.5 billion expected by the group itself. Among them, the Chinese market is still sluggish, and sales decreased by 12.5% over the previous year.

    In 2006, Crocs went on sale in Nasdaq and entered the Chinese market, setting up a hole shoe boom, which was worth up to 6 billion dollars at that time. On the day of the two quarter earnings, the company's share price plunged by 23.27% on the day of August 3rd, and its market capitalization was just over $600 million.

    In this bad earnings report, CEO Gregg Ribatt can only say that the same store sales including retail and e-commerce have increased by 2.9%. However, he did not mention that after the contribution of e-commerce was removed, there was a 3.4% decrease in physical retail outlets and same store sales. In addition, he pointed out that the increasingly challenging global retail environment will lead to a further reduction in wholesale orders.

    After the explosion in 2007, the sales of Crocco's star products hole shoes once declined, or even seriously dragged down the group's performance.

    In order to reverse the decline, Carlo's new product has also undergone a series of changes, such as improvement, snow, and resurfacing. Although clo Chi has the vision of "creating a product that is closely related to the daily life of consumers, rather than just coming fast and fashionable," the sales status of its products is still worrying because of its sticky consumer gimmick.

    Success or failure is due to "catching up with fashion."

    In order to boost its performance, since 2007, Carlo has made three spanformations, but the results are not satisfactory. At first, crocchi hoped to attract more consumers by changing the style of the hole shoes. For this reason, the Jibbitz, SamanthaBryan design company, which was designed to produce ornaments for the gas hole of the cavities, could allow the cave shoes to be inserted into the ornaments. However, this series of measures failed to keep the popularity of cave shoes.

    The hole shoe that can not help the wall is stuck by "Snow" in the second spanformation process, instead of the canvas shoes and high heels shoes placed in front of the shelves. However, these new categories were not recognized. In 2009, Carlo's first big loss since its listing was $184 million. In such a state, the third spanformation is coming, and the content of the spanformation is quite helpless: in 2014, Carlo's closure or reorganization of 75-100 of the 600 direct outlets headed by the Chinese market reduced the original 350 product lines by 30%-40%.

    "The prosperity and decline of cave shoes is just the same old Chinese saying:" how can we fail? " Consumers are eager to catch up with fashion in the short run, making it fast for Carlo. But this rapid decline of fashion and unfashionable trends has also led to the hard work of Carlo. " In the view of Zhao Pei, an apparel industry analyst, what Carlo's past relied on is this fast fashion trend. But in the short term, the exploding fire also obscures the problems of Carlo's own: the product is single, the update speed is slow, the order mode is traditional. Last year, the new CEO of Crocco hopes to make the cave shoes return to the market and create a glories of the past. I hope it will be a question mark if we can achieve this.

    The popularity of Shanzhai makes the brand dust.

    In the industry view, the biggest harm to the brand of Carlo is repeatedly banned "cottage goods". Zhao Pei thinks, when the hole shoe is popular, consumers also have to buy a pair of "genuine shoes" enthusiasm. But with the decline of popularity, the price of cheap, almost the same style with the same authentic cottage shoes have prevailed. Although Carlo has also tried to suppress imitation products by raising prices, it has had little effect.

    In the face of rampant "cottage goods", sales of Tmall's flagship store told reporters that there were two channels of Tmall flagship store and official mall on the card line, and the price of genuine KLOE shoes was over 100 yuan. But apart from sales channels and prices, salesmen can not give other ways to identify authenticity. In response, the reporter sent an interview outline to Carlo China, but no reply was received as of press release.

    In the industry, the era of "hole shoes" is over. Carlo wants to build an international brand, and it must get support from other categories, but it also faces enormous challenges. Carlo's canvas shoes and other casual shoes, competitors are no longer just "Shanzhai goods". Dansko and Eneslow shoes brand brands have launched similar comfort shoes. It is clear that clocco will face more intense competition if it wants to recreate its splendor in 2007.

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