Why Did The Asia Pacific Region Decide To Sell Trumpet Shoes?

According to the world clothing shoes and hats net, Crocs

Because single

Image has always been

Most people have always regarded it as a functional shoe, but it also had a glorious time 10 years ago.

Crocs went public in 2006, valued at $6 billion, the largest footwear IPO in the United States, and swept the shelves of major shopping malls a year later, reaching an annual sales volume of 8.47 billion US dollars.

But later development seems to be lacking in stamina.

After a short windfall, the company lost money every year, and now the market value of Crocs is only 460 million dollars.

Recently, Crocs announced its first quarter earnings this year, with sales of $268 million, down 4.4% from a year ago, but better than analysts expect, and 49.9% gross profit margins are higher than 46.3% in the same period last year.

Business channel performance is outstanding, revenue grew by 2.7% over the same period, now it can contribute 12.6% to total revenue, and this is also mainly due to the high growth rate of 21.7% in the Asia Pacific region.

The current CEO Gregg Ribatt said in a statement that the new spring and summer performance in 2017 was good, thus driving the growth of gross margin.

In addition, in June 1st of this year, the company will usher in the new CEO Andrew Rees, who is currently in the company's position as chairman.

With the high level of internal changes, the company's business strategy is constantly changing.

Crocs streamline stores in a large scale in order to reduce costs.

In March of this year, Crocs said that by the end of 2018, the number of 558 existing stores would be reduced to around 400.

In addition, the company will cooperate with China and the distributors in the Middle East, who will be directly responsible for the operation of the stores.

Distributor channel is the main sales channel of Crocs (occupying 52.7%), but sales volume in Asia Pacific region is the largest in the first quarter of this year.

Before the Chinese market a large number of Shanzhai hole shoes, snatched many market share of Crocs, but also made the market rapidly saturated.

At that time, Crocs's strategy was to expand the footwear product line, and put the hole shoe as a bait and put it on the inside of the rack to attract customers into the store first to contact other Crocs products, including high-heeled shoes, sports shoes, winter boots and so on.

Before the two extension of the brand, Crocs also bought the adornment manufacturer Jibbitz and SamanthaBryan on the holes in the shoes, but this is very "chicken ribs".

Coupled with the impact of the financial crisis, the company lost $185 million in 2008, and a year later laid off nearly 1/3 employees.

After 2014, the company intends to regard the shoes as the focus of future development, which seems to have something to do with the prevailing fashions of comfortable sandals and lazy shoes.

Data from China's report hall also showed that the market size of China's casual footwear industry will be 125 billion 100 million yuan, with an average annual growth rate of 7.29% by 2016.

Now the Asia Pacific region is undoubtedly the focus of the company's development.

In April this year, the company launched #ComeAsYouAre marketing activities, in addition to the invitation of the European and American stars Drew Barrymore, John Cena, targeting the Asian market, also found the Korean star Lim Yoona and Korean popular combination Super Junior M member Henry Lau.

It is worth noting that the use of celebrities to reshape the product image is something that Crocs has not done before.

Crocs also collaborate with Smiley smiley brand to make a pair of cave shoes, which were put on shelves in April this year.

Now Smiley has more than 260 authorized companies in the world. According to a recent survey by Toluna, Smiley trademark has been recognized as a positive symbol with a global recognition rate of 97%.

CEO Gregg Ribatt said that the company would reduce the input of television and paper media, focusing on the use of electronic advertising and social media, which are more accessible to young people.

Last year, Crocs spent $9 million in media publicity, and the overall advertising cost cost $56 million.

The company expects sales in the second quarter of this year to be between $305 million and $3.15.

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