What is Happening?
Shoemaker Crocs had a strong 2020 with 33% year-on-year growth.
But it seems the brand isn't slowing down with the company targeting between 40 and 50% growth again in 2021
Much of this is the result of a turnaround that began in 2013 with a investment from a private equity firm and changes to strategy. This saw the closure of 75% of retail stores and a focus on simplifying the brands range.
What Does it Mean?
While a shift in marketing investment strategy from TV to social media has delivered improved performance there are a number of other aspects to Crocs strategy that have helped fuel more sustainable growth for the brand.
Let us further examine a few key points underpinning Crocs performance:
- 👉 A Smaller Range
Not only does the company sell fewer types of shoes (it briefly had a golf shoe and high heels), it has reduced styles to core models capable of bringing sustainable growth.
- 😇 Personalisation
Consumers will spend more on personalisation. Crocs does something similar with Jibbitz. These are small plastic icons selling for a few dollars that lets a customer personalise their shoe.
- 🤸♀️ Influencers & Partnerships
A recent collaboration with singer Justin Bieber — $70 lavender Crocs adorned with chipmunk and teddy bear charms — quickly sold out. Crocs also partnered with Balenciaga on an $850 platform clog, KFC on a $60 fried-chicken-print shoe with drumstick charms, and Disney-Pixar for a $50 homage to the “Cars” films that lights up.