Today, when one mentions ‘Crocs’, what comes to mind? Spunky, quirky, fashionable and comfort. But this wasn’t the case a few years back. Mercilessly told off for being one of the world’s worst fashion disasters, the ‘Crocs’ fought a lot of hatred, to be a brand worthy of what it now is.
The shoe type was devised by three friends, when one of them, Scott Seamans, was demonstrating a slip-resistant clog, which was from ‘Foam Creations’, to his friends. The three of them, Scott along with George Boedecker and Lyndon Hanson, sensing business opportunity, bought the company and purchased exclusive rights to their proprietary foam resin-Croslite. Armed with enough research on the benefits on wearing footwear made out of Croslite, they made ‘Crocs’ and bought it to the market.
For the first few years, the company did well. However, the year 2008 saw losses amounting to nearly $400million.
Reasons for Failure
The shoe-types major setback was its appearance. It was termed downright ugly by a lot of users. Also, many thought of it as a passing fad, which would wane away anytime soon, owing to its appearance.
Secondly, a recession was starting. That time, didn’t warrant a purchase of an ugly-looking pair of shoes.
With so much happening, what turned tables for the company?
The Recovery
For a good 6-8 years Crocs, just stayed put in the market, battling competition, and more than that indifference and hatred. But then, in 2014, the company undertook restructuring, spending around $25 million, closing a few stores and reducing their product range.
Initially, the product was put up as footwear type ideal for gardening or fishing. But now, the brand was conveyed differently. Playing up on its strengths, Crocs was placed as bright, light and squishy, making it the perfect choice for kids.
Also, the shoe design made enough room for expelling odor and water, and hence middle-aged and old people could use them too. Being water-resistant and designed in such a way that the impact of walking is distributed on the entire foot, attracted a lot of medical professionals, chefs and parents, due to its utility factor.
The material made the shoes dishwasher-safe too.
Marketing Strategy
The brand decided to embrace its ‘ugly self’. Rather than re-designing or moulding itself into something else, the brand concentrated on those who accepted the product, thereby staying true to itself. For example, their collaboration with Spotify saw white crocs being sold off in within minutes.
Also, Crocs collaborated with Justin Beiber, who is a Crocs fan, and is often seen wearing them. Same goes with Drew Barrymore and Priyanka Chopra Jonas. Crocs saw collaborations as a profitable way of attracting masses. Concentrating on micro-influencers rather than just bigger names, too has benefitted the brand.
Another strategy that Crocs followed is that of limited supply. All their collaborations were limited in supply and this strategy created the FOMO, driving high sales, also because people feared mssing out on the collection. Crocs wanted customers to feel that they own something that is valuable. And anything that is over-sold, slowly starts losing value.
In recent times, Crocs donated over 9,00,000 pairs of crocs to healthcare warriors around the world, during the pandemic. Owing to the comfort it provides, the shoes became popular and the brand also garnered attention and earned goodwill
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