How Does Crocs Become A "Miracle Maker" For Tmall's 618 Children's Shoes?

Tmall 618, a list of "miracle makers" is really attracting people's attention. It is a comparison between last year's double eleven and volume doubling brand statistics. Crocs flagship store is worth introducing.

Crocs Chinese name card Luo Chi, shoes logo is a small crocodile, it is a shoe business in the United States, founded in 2002. The archetype of "hole shoe" is also the originator of "cave shoes".

Crocs's mode is "semi light assets" operation. About 60% of Crocs's products come from two factories in China and Vietnam, but there are still self produced factories inside the group. As early as 2017, Crocs announced that it would gradually close its factories and more than 100 stores. In 2018, Crocs began to lay off workers and shut down factories. The statement said: the second quarter has closed its production facilities in Mexico, the company is also ready to close its last production base in Italy, and the group's chief financial officer, CarrieTeffner, will also be leaving. This has also led to speculation about whether Crocs wants to end its business. The company issued an explanation article: only to adjust the company's business, streamline business.

What is the plight of Crocs and how to streamline its business? Only three aspects: the modeling function is too single; the material is durable, the rate of repeat purchase is not high; the direction of the company is blurred.

In fact, the plight of Crocs in China is much more than that because the "unique" environment of the Chinese market also has the problem of counterfeit goods flooding and security. Crocs the price of a pair of slippers is around 300 yuan, and some joint funds will also be sold to 500 yuan. Such pricing also allows some fake businesses to take advantage of them. For Chinese businessmen, the Crocs hole shoe is "no difficulty". In addition, the "hole shoe" is pointed out to be a safety hazard because of its too soft material, which makes Crocs worse in the Chinese market.

Crocs began its performance in 2012, and its performance has been much worse than before. Until 2018, its performance has improved. According to the two quarter report of Crocs2018, the net profit of Crocs increased by 67.9% to 30 million 400 thousand dollars over the second quarter of June 30th, and its revenue increased 4.7% to 328 million US dollars from 313 million US dollars a year ago. What kind of strategy is it that allows Crocs to tide over difficulties?

Shut the factory to save itself and return to the main business

In 2017, Andrew Chis, the latest CEO of Crocs, came up with a plan to re focus on core products, cut product lines, turn off unprofitable shops, and reduce costs.

In fact, many enterprises lose themselves in the course of their own development, and finally find no way out. In recent years, there has been a brand in efforts to "return to the main business", and truly and successfully is also a minority. Bosideng is one, from the down jacket to women's wear, men's wear, children's clothing, it has been done all the time, until the last two years to return to the main business, is another success. The Pathfinder and YOUNGOR are still groping for their main business, trying to regain their main business.

Closing factories to save themselves is a way to lighten their burden. In fact, most clothing enterprises are the mode of light assets operation, including international famous Nike, ADI, Chinese children's wear brand balbala, all have their own foundry factories. It seems that Crocs has found its way out by streamlining its business lines, focusing on its core business and closing its unprofitable shops.

Attach importance to R & D of "black technology"

In March 2018, Crocs officially released a new technology, LiteRide, which could make shoes more comfortable. It also listed the new products made by this technology in the world. The appearance design of shoes also cleverly integrates sports leisure style and fashion sense into all classic shoe models.

From the beginning of its establishment, Crocs has been playing the main characteristics of footwear, such as skid resistance, comfort and so on. This time, we attach importance to "black technology" and invest in product research and development, which accords with the impression of the enterprise to the public and reshaped the confidence of consumers in products.

Joining the seven sons of Paris and lohua, the fire was "unreasonable."

In 2017, Crocs co operated with a new cave shoe called FOAM, a combination of sponge cake shoes and cave shoes.

The temperament of the Paris family has always been "unique" and "absorbing". But aesthetics is so unreasonable that it was robbed on sale. The leading style of this "ugly" shoe is so strange that it has been accepted by everyone and is very popular.

Now that we have no reason to accept it from outside, it should be the internal reason. Paris family is one of the most influential brands in the fashion industry. Many times it is "dare to be first". Therefore, it is a good way to rely on its influence and influence on the minds of consumers.

In order to gain a firm foothold in the Chinese market, Crocs also joined the China's popular idol group, "lohua seven sons", to promote the new products. This is the rhythm of opening up a new generation of consumers in China. In fact, this move has indeed made a good response. Crocs still seems to be working in the "younger" class. 618 of this year's Crocs turnover is 3.5 times that of last year's 11.

But why is the "hole shoe", which is known as a safety hazard in the Chinese market, can achieve such a good result in the sensitive field of children's shoes?

One is to focus on the market and multi scene development, which is a big driving force for children's shoes in the field. Crocs also has such a layout, including children's shoes, outdoor shoes and clothes, rain shoes, canvas shoes and so on. The two is IP's cross-border joint name, including cooperation with Xiao Huang people, Disney series interesting flavor academy, Hu Di and bass light year Klog and other big IP; three, it also benefits from Crocs brand accumulation, useful account tablet and brand recognition, from adult to children's layout, there are fans base. In addition, the reason is far more than double 11, which is seasonal, 618 time is summer, Crocs is the main hole shoe, so the sales volume in summer is very impressive.

Crocs has opened the market in China, especially in children's shoes business. In contrast, the lack of Chinese children's shoes market is precisely the brand with its own style and technology. Now China's children's shoes market is still the majority of domestic brands, but international brands occupy the head of the minority, so children's shoes brands should face up to their shortcomings and play their own local brand advantages.