A list of "miracle creators" in Tmall 618 is really eye-catching. It is the statistics of doubled brand turnover compared with last year's Double 11. Among them, Crocs Children's Shoe Flagship Store is worth introducing.
Crocs Chinese name is Kalloch. The shoe logo is a small crocodile. It is a shoe enterprise located in the United States, which was founded in 2002. The prototype of the "hole shoes" in China is also the ancestor of "hole shoes".
Crocs operates in a "semi light asset" mode. About 60% of Crocs's products come from two factories in China and Vietnam, but the group still has its own factories. As early as 2017, Crocs announced that it would gradually close its factories and more than 100 stores. In 2018, Crocs began to cut jobs and close factories. The statement said: In the second quarter, the company has closed its production facilities in Mexico, and is preparing to close its last production base in Italy; At the same time, Carrie Teffner, the Group's chief financial officer, will also resign. This also triggered speculation about whether Crocs would close its business. The company released an explanatory article saying that it is only to adjust its business and streamline its business.
What dilemma did Crocs encounter to streamline its business? There are only three aspects: modeling function is too single; The material is durable, and the repurchase rate is not high; The direction of the company is ambiguous.
In fact, Crocs has encountered more difficulties in China than these, because the "unique" environment of the Chinese market also has a proliferation of fake goods and security problems. The price of a pair of Crocs slippers is about 300 yuan, and some joint brands will be sold for 500 yuan. Such pricing also allows some fake merchants to take advantage of it. For Chinese merchants, it is "no difficulty" to copy Crocs hole shoes; In addition, because the material of "hole shoes" is too soft, it is pointed out that there is a potential safety hazard, which makes Crocs worse in the Chinese market.
Since 2012, Crocs' performance has been much worse than before until 2018. According to Crocs' second quarter report of 2018, in the second quarter as of June 30, Crocs' net profit has increased by 67.9% year-on-year to $30.4 million, and its revenue has increased by 4.7% from $313 million in the same period last year to $328 million, of which e-commerce revenue has increased by 23.8% and same store sales have increased by 7.1%. What is the strategy to enable Crocs to "tide over difficulties"?
Shut down the plant to save yourself and return to the main business
In 2017, the latest CEO of Crocs, Andrew Reese, took office and formulated plans to refocus on core products, cut product lines, close non-profit stores, and reduce costs.
In fact, many enterprises "lost themselves" in the process of their own development, and finally could not find a way out. In recent years, there have been brands trying to "return to the main business", and only a few have really achieved and succeeded. Bosiden is one of them. From down jacket to women's clothing, men's clothing and children's clothing, Bosiden has done it all over the world. It has not achieved another success until it returned to its main business in the past two years. The Pathfinder and Youngor are still on the way back to their main business, trying to regain the main business of the year.
Closing the factory for self rescue is a way for enterprises to reduce their "burden". In fact, most apparel enterprises operate in a light of assets mode, including the international famous brands Nike and Adidas, and the Chinese children's wear famous brand Balabala, all of which have their own OEM factories. It seems that Crocs has found its way out by streamlining its business lines, focusing on core businesses and closing non-profit stores.
Attach importance to the research and development of "black technology"
In March 2018, Crocs officially released LiteRide, a new technology that can make the sole more comfortable, and launched new products made with this technology in the world. The appearance design of the shoes also skillfully integrates the sports leisure style and fashion sense into each classic shoe type.
Crocs has been focusing on anti-skid, comfortable and other shoe quality characteristics since its inception. This time, it attaches importance to "black technology" and invests in product research and development, which conforms to the impression of the enterprise on the public and also reshapes consumers' confidence in the product.
The combination of Balinese Family and Lehua Seven made the fire "unreasonable"
In 2017, Crocs and Balenciaga cooperated on a cave shoe named FOAM, which is a combination of sponge cake shoes and cave shoes.
Balenciaga's tonality has always been "unique" and "eye-catching". As Balenciaga has gone further and further on the road of "exotic flowers", this pair of shoes with unique shape has also been called unacceptable by the public. But the aesthetic is so unreasonable that it was sold out. The dominant style of this "ugly" shoe is so strangely accepted and popular.
Since there is no external reason for people to accept it, it should be the internal reason. Balenciaga is one of the most influential brands in the fashion industry, and it is "dare to be the first" in many cases. Therefore, the joint name with Balenciaga depends on its influence and the good plan of influencing consumers' minds and actively planting grass.
In order to gain a firm foothold in the Chinese market, Crocs also teamed up with the popular Chinese idol group "Lehua Seven" to create momentum for the new product promotion. This is to open up the rhythm of a new generation of Chinese consumers. In fact, this move has indeed received a good response. It seems that Crocs is still working for the "younger" class. At 618 this year, the trading volume of Crocs is 3.5 times that of last year's double 11.
But why can "hole shoes", which are said to have potential safety hazards in the Chinese market, make such good achievements in such a sensitive field as children's shoes?
First, it is aimed at market segmentation and multi scene expansion, which is a major driving force for the increase of children's wear and shoes field. Crocs is also arranged in this way, including parent-child shoes, outdoor footwear, rain shoes, canvas shoes, etc; Second, IP cross-border co branding, including cooperation with Xiaohuang Ren, Disney series Fun Academy, Hu Di and Bass Lightyear Xiaoke Luoge and other big IPs; Third, it also benefits from the Crocs brand accumulation, which is useful for household registration and brand recognition. The layout from adults to children has a fan base. In addition, the reason why it is far superior to Double 11 is the seasonal influence. The 618 season is summer, and Crocs mainly plays hole shoes, so the sales volume in summer is very considerable.
Crocs has opened the market in China, especially the children's shoes business. In contrast, what the Chinese children's shoes market lacks is this brand with its own style and technology. At present, the children's shoes market in China is still dominated by domestic brands, but international brands occupy the top position with a small number. Therefore, children's shoes brands should face up to their own shortcomings and give play to their local brand advantages.