Self Run Factories, Curtain Shoes, And Shoes, All Over The World, Crocs Seeks Outsourcing And Self Rescue.

CROCS loco, which has been popular around the world in recent years, has been in crisis recently.

After closing nearly 30% stores, it recently announced the closure of the last factory in the world.

In response, Carlo said in a statement: "in order to simplify business and improve profitability, the company closed its production base in Mexico in the two quarter and decided to close its last production base in Italy, aiming to improve profitability and focus on online development."

According to the industry, shutting down factories and shops has made the brand value of the brand fade, especially in the Chinese market.

Melissa Melissa and other brands also seize most of the market share, if the line is lost again.

There are still many uncertainties to get back to the right track.

In fact, behind the closure of the shop, it is Carlo's choice to deal with the persistent downturn in recent years.

Carlo was founded in 2002.

The founder of Carlo uses a Canadian style.

The molding process is used to make plastic slippers full of holes, so they are called "cave shoes".

Once the market has been launched, it is controversial. Although it is ugly by people's Tucao style, it has become popular all over the world due to its comfortable and durable service.

In 2002, cave shoes sold more than 300 million pairs in 90 countries.

In 2006, the company listed on Nasdaq, valued at $6 billion.

In the same year, Carlo began to force the Chinese market and became popular in the Chinese market.

In 2007, Carlo began to diversify.

However, in 2009, it suffered its first huge loss after listing, with a loss of US $184 million.

In 2016, sales of global sales dropped to 56 million 100 thousand pairs, down 4.2% from the same period last year, and sales fell 4.95% to 1 billion 36 million dollars year-on-year, with a net loss of 31 million 738 thousand US dollars for the whole year.

Meanwhile, sales in China also dropped by 12.5% compared with the same period last year.

In order to reverse the loss situation, Carlo has made many adjustments to buy Jibbitz, SamanthaBryan and other enterprises specializing in the production of ornaments for cave shoes.

But after a series of takeover actions, cave shoes did not lead the fashion trend, which also declared the failure of the first strategic adjustment of Carlo.

Since then, in the second strategic adjustment, Carlo has focused its attention on diversified development, offering canvas shoes, high-heeled shoes, leather shoes and other products, but it has not been recognized by consumers.

In 2014, Carlo began its third strategic adjustment.

Focusing on the Chinese market, Carlo has closed or restructured 75-100 stores in the Chinese market and reduced the original 350 product lines by 30%-40%.

In fact, it also opened the curtain on the continuous closure of the company.

Last year, Carlo had 558 stores in the world, and the official of Carlo said that it would close 160 stores in 2018, accounting for 29% of the total number of stores.

In the latest release of Carlo's report, Carlo once again reiterated the need to control the number of global stores in 400 stores.

According to Carlo's plan, Carlo will outsource its production business and focus on developing online businesses.

An industry insider familiar with Carlo Locke said that at present, all products of Carlo's products have been outsourced, and now it is only to turn off their factories and reduce costs and increase profits.

It is understood that outsourcing production.

It's not a case.

As early as 1993, Adidas closed its last self run factory in Germany, and put most of its production bases in China. Nike was known as "a sports giant without even a factory."

It is reported that at present, Carlo has already had four foundries in China, and will not rule out the possibility of finding new factories in China in the future.

Cheng Weixiong, managing director of textile and clothing management and general manager of Shanghai Liang Qi Brand Management Co., Ltd. said that it is normal for Carlo to shut the factory. The brand product can be OEM by its factory, and its own brand and product research and development are good for gathering resources to do well the brand and product, while the tedious factory management integrated into the global procurement system is more conducive to product cost and efficiency improvement.

It is worth mentioning that the strategy of stopping the self run factory by Carlo has also been effective. The capital saved by the reduction of institutions and personnel has been put into the design. In 2018, the second quarter earnings report released by Carlo published showed that the net profit in the second quarter of fiscal 2018 was 30 million 426 thousand yuan, up 68.23% from the same period last year, and its operating income was 328 million US dollars, up 4.72% over the same period.

However, in the fashion industry investors, Yang Dayun, President of Yi Yi International, there seems to be some drawbacks in outsourcing outsourcing. The outflow of design details makes it easier to fake.

The output also gives the representative factory the opportunity to study high imitation.

An insider who once produced shoes for production said: "the left side of the factory is a genuine product, and the right side is a product, which is the difference between the target and the product.

But the price of a product is half the price. "

An insider who declined to be named said that the design of Carlo's domestic product was not protected.

At the beginning of entering the Chinese market, there were no competitors, so it was less affected.

Nowadays, there are more than 100 enterprises that produce hole shoes in China.

OEM will still face the impact of counterfeit goods. It is very important to rely on unique design to avoid the impact of counterfeit goods.

Although shutting down shop and looking for foundry, it has made its success. However, how to break the brand branding and enhance the competitiveness of the product has become a difficult problem for Carlo.

"The products of cave shoes are too deep, leading to the inertia thinking of other product development. After the success of the single product and the explosion, they are somewhat complacent. After the success, innovation and research and development can not be carried out, and it is easy to restrain themselves.

Although the shoes of the cave have their own fashion and functionality, fashion and functional products are easily replaced or updated by the new fashion and new functional products in the era of consumers' self-determination.

Cheng Weixiong said.

At the same time, Carlo also encountered attack from competing products.

In the Internet age, net red fast fashion footwear products emerge in an endless stream. In addition to Melissa and other brand shoes, there are still products that are more accepted by consumers than bean shoes and latex shoes, which almost cover the whole product line of Carlo's brand.

Prior to this, Melissa's hot sales in China had been brought.

The prosperity of the celebrities and the frequent participation of celebrities have made Melissa become the tide card of jelly shoes.

By contrast, sales of Locke in the country have reached a low ebb.

It is worth mentioning that the Beijing Business Daily reporter saw that there was no entity store layout information on the official website of Carlo's China.

On the page, it focuses on online stores, and gives Tmall and Jingdong entry, in order to guide consumers to buy products through e-commerce channels.

However, the electricity supplier channel has not formed the actual growth of sales volume.

At present, browse Tmall's flagship store can find that Carlo's attention is not high, and sales in footwear products are at a low level.

In fact, the main reason for the poor sales of Carlo is the aesthetic fatigue of consumers.

Beijing Business Daily reporter found in a Croci counter, after the summer sales season, the current sale of the Locke shoes began to discount, and canvas shoes, leather shoes and other products almost nobody.

One of the shoppers, Mr. Wan, said, "the most classic and most labelled product of Carlo is cave shoes, or cave shoes.

Its canvas shoes, leather shoes and other products, no matter from comfort or functionality, are not as good as other brands.

A salesman also frankly said that compared to the cave sandals, camcar had previously been innovating in high heels, leisure shoes and other styles, but the effect was not good, and many products had ceased to be produced.

The industry believes that although Adidas, Nike and other brands are also completely outsourcing production, but the line has not lost, and the closure of the brand image shop of the loco Chi camp has also made consumers lose confidence. If we want to go back to the top, the road is not easy to go, and there are still many uncertain factors to store.

In view of the future development of Crocco, Cheng Weixiong believes that "the change of cave shoes is also based on its own changes, and it needs to do more market research and demonstration on the seamless connection of the cave shoes in fashion, functionality, personalization, and each stage of the new consumer groups. It can not rely solely on the electronic business platform, not to change with a fresh product."

In this regard, Beijing Business Daily reporter contacted the relevant person in charge of Carlo, but as of press time, the other side did not reply.