What Works in China: How Crocs Transformed from "Ugly" Shoe Brand to Fashion Best Seller

Crocs, the fashion brand from the United States, has experienced significant growth over the past few years, despite its "ugly" appearance.

Yane

6/14/20232 min read


Crocs, the fashion brand from the United States, has experienced significant growth over the past few years, despite its "ugly" appearance.

In the fourth quarter of 2022, the company's sales reached $945 million, a year-on-year increase of 61.1%, and for the full year, sales soared by 53.7% to $3.6 billion. The brand even entered the top 10 in women's shoe sales!

Crocs' success can be attributed to three factors: focusing on niche markets, product innovation, and channel innovation.

In addition, the company has successfully used social e-commerce to enhance its brand social influence and achieve marketing conversion.

In the past, Crocs suffered losses of $185 million due to overstocking, a disorganized product line, and an abundance of counterfeit products.

However, after restructuring and refocusing on its core product line, Crocs began to achieve rapid growth by targeting niche markets. The company has also combined cutting-edge materials and personalized design to meet various needs.

Due to the impact of the pandemic, people have become more concerned about health, leading to an increase in outdoor activities, which has contributed to the growing popularity of Crocs.

The brand's unconventional and unique designs have also won the favor of Generation Z in China.

Crocs' success can also be attributed to its channel innovation. The proportion of Crocs' sales through e-commerce channels has continued to rise, and the company has strategically laid out its online retail in the Chinese market.

Crocs has opened flagship stores on platforms such as Tmall, entered e-commerce channels such as Douyin, and leveraged live-streaming sales to increase online sales. In addition, Crocs has collaborated with Tmall on the "Tmall Big Brand Day" and promoted sales during shopping festivals such as "618" and "Double 11."

Finally, Crocs has successfully used social e-commerce to enhance its brand social influence and achieve marketing conversion. The company has engaged in a lot of cross-border IP co-branding and collaborated with well-known brands and big IPs such as the Minions, Disney series, and Woody and Buzz Lightyear.

Crocs has also collaborated with heroes such as Xiao Qiao, Cai Wenji, and Sun Wukong in Honor of Kings to launch the "Born a King" series of "combat boots." Additionally, Crocs has collaborated with idol celebrities, internet celebrities, and KOLs to promote sales conversion.

Crocs has successfully turned losses into profits by focusing on niche markets, product innovation, and channel innovation. The company's success in China can be attributed to its unconventional and unique designs, channel innovation, and social e-commerce.

Crocs has shown that with the right strategy, even a product that is considered "ugly" can become a fashion trend.

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