the crocs story, walk this world

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219 220 Walk this world When Crocs’ European CEO Dick Wijsman went to Spain to see El Corte Ingles for a distribution deal, he hit an amusing snag. The taxi driver at the airport took one look at his shoes – bright yellow Caymans, of course – and flat-out refused to take him to his appointment. But when Wijsman explained the concept of Crocs to him, and how it’s an American brand taking the European market by storm, the driver gave in. Wijsman got his ride and the rest as they say is history, as Crocs enjoys formidable success in Spain after only 2 years on the market.

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An interview by Maarten Schafer and Anouk pappers with Martin Johnston and Dick Wijsman. [Published in CoolBrands, the Guru Book 2009] - [copyright: cool4ever]

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Page 1: The Crocs story, walk this world

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Walk this worldWhen Crocs’ European CEO Dick Wijsman went to Spain to see El Corte Ingles for a distribution deal, he hit an amusing snag. The taxi driver at the airport took one look at his shoes – bright yellow Caymans, of course – and flat-out refused to take him to his appointment. But when Wijsman explained the concept of Crocs to him, and how it’s an American brand taking the European market by storm, the driver gave in. Wijsman got his ride and the rest as they say is history, as Crocs enjoys formidable success in Spain after only 2 years on the market.

Page 2: The Crocs story, walk this world

221

Coolbrands: M

aarten &

Anouk idw

Martin

Johnston a

nd D

ick W

ijsman

A mile in my shoesProduct is king. Crocs’ unofficial motto says it all. And that means staying loyal to its roots and its heritage, which essentially boils down to its brand values. Crocs’DNA means a lot of things to a lot of people, which makes brand extension only possible if certain feel-good, if not iron-clad requirements are consistently met. Be it new products like textiles or brand alliances with companies like Disney, Marvel, NASCAR, sports properties or Warner Bros; they simply need to click with Crocs. In the end the consumer is the judge of new products and models, reaching a verdict on their perception of the past.

Crocs’ creativity will not be daunted by the size or success of its company, staying true to its entrepreneurial heart although it’s big enough to buy other, smaller brands. Internally, bringing new models to market and structuring distribution are two ways to challenge the challenge. Come in direct contact with the customer and give them a steady flow of new Crocs as well as the hero models like the Cayman. More models are easier to distribute through different channels, like boutiques, own retail and online sales.

Communication strategyInteracting with the end consumer1. Direct – face to face in its single-brand shops, and shop-in-shops2. Direct sales - through the website3. Sponsorship events

Crocs thrives on feedback from the end consumer. From the start, being very open and responsive has done both parties a world of good, sometimes even resulting in using customer pointers in its products.

Distribution strategyCrocs has had great success in pretty much every market it enters. And not just in pieces sold, but also in overall reach and distribution quality in the market. Important aspects, as the maturity of its market position also determines which distribution channels to follow. Therefore the brand’s positioning differs per country. For instance, in Italy Crocs competes with Prada and Gucci in high end boutiques before they hit the mainstream. In other markets like Russia and Eastern Europe it’s still a developing brand which is driven by the sell-in of the company’s most recognizable model; the cayman. Most lifestyle brands start out distributing in fashion and lifestyle segments and later on go to more affordable segments to cover the rest of the market. Crocs doesn’t take itself too seriously, knowing that the brand being for everybody is one of the nicest things it has to offer.

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The flow from head to toeCrocs went from 1.000 pairs sold in 1.5 days on a Miami boat show to acting as a global footwear company with headquarters in Boulder; USA, Scheveningen; The Netherlands and Singapore. It boasts about 31.000 international doors in more than 90 countries, generating some 847 million dollars in 2007. In that same year Crocs went public in the most successful IPO in footwear history, more than doubling its earnings in one smooth move.

95% of sales comes out of multi-brand environments. Besides those, launching more shop-in-shops and single-brand stores in main cities are on the agenda. These can serve as testing grounds for new products and create face-to-face opportunities to generate new ideas and models.

Continuing the set course to become a lifestyle brand implies nothing more than sticking to development of products and playing around with what the brand can be and look like. It’s a luxury position for a relatively pubescent company. As for distribution, expanding from one product to an all-season product line guarantees distribution relations a continuous flow of products during the year.

On the non-profit front Crocs gives back as much as it can. Believing everybody in the world should have a pair of shoes, it donated one million pair of Crocs in 2007 via its CSR vehicle: SolesUnited. This in-house organization recycles old Crocs and distributes them to less developed and developing countries

AlsoRoots & original story of the brandCrocs has been established in 2002 in the USA. Its three founders were on a boat brainstorming about what could be the next opportunity in the footwear market. The Cayman and Beach models were the first Crocs to see the light, marking the birth of the brand. The shoes took the world by storm, thanks to their unique design, Croslite™ material and quirky colours.

Company profileCrocs grew to be a global company in only six years time. Nowadays fourteen distribution centers and nine manufacturing plants are spread all over the world, producing fast-dwindling stock for 90 + countries that annually tops revenue records from the previous year. Its product line has over 80 different models, aimed at different target groups, ages and genders.

Happy feetLove ‘em or hate ‘em; Crocs’ light, brightly coloured shoes are definitely here to stay. Its whopping success is based on the individualization trend in the market, where consumers make more and more statements with their wardrobe. Crocs patented catalogue of flexible, quirky footwear fits in perfectly with this need, taking it even further with the complementary Jibbitz, shoe charms with which a basic pair of Crocs can be customized.

On the business end there is hardly any rain in this cloud. Price, quality, and benefits are perfectly transparent, and backed by an attractive, young and energetic company. Its brand values – Fun, Colourful and Comfortable – set the brand apart from most of the competition. Whoever has worn a pair, will at one time probably recommend Crocs to friends, family and neighbours. Crocs are as catchy as a smile. Or, to put it in Crocs’ words, these shoes bring colour and sunshine into the lives of everyone. Where do we sign up?

Crocs isn’t just developing the Crocs brand, but has also added other brands to the family. Jibbitz, Ocean Minded, YOU by Crocs, Bite, Fury and others were acquired to generate economies of scale, and have kept their names to that effect. All is meant to be stronger as a group of brands and profit from each other’s unique selling propositions.

Crocs focuses on different target groups, depending per country, where they develop the brand; like high end, lifestyle, mid segment or sports, to name a few.

So what’s the challenge? The ever-demanding consumer will come back for more, that’s for sure. To survive in the long run Crocs had better diversify its catalogue from one shoe model to a complete array of lifestyle products. Regarding the superfast growth rate at which the company is going now, extending the footwear brand into a lifestyle brand can be hazardous. Especially when its concept and brand values are at stake. Already its strong sales and resulting demand are proving to be somewhat of a challenge; Crocs is working around the clock to deliver to a more demanding market place while putting an infrastructure in place to take the company forward for the future.

Same old same old, experienced marketeers will say, that’s the deal when your brand grows. But how do you guard all that the brand stands for when it extends into more products and different international product categories?

CEO & President Ronald R. Snyder |Number of employees worldwide 5.700 | Company revenues worldwide 847 million dollars (2007) | Brand values Fun, Colourful, Comfortable | Most relevant communication media Direct, direct sales, sponsorship events | Brand promise Colour your life | Main target group Crocs are for everybody