timberland chelsea boots How a trendy shoe nearly lost its footing
By 2007, the Colorado based company was selling 50 million pairs a year, reaching $850 million in sales. Then it all went south.
The economic collapse in 2008, combined with a saturated market, created what Crocs CEO John McCarvel described as a “perfect confluence of events.”
“Too many people have the same product, selling it to the same consumers, and just our inability to evolve as a brand caused a turn of fortunes in the business,” he said.
The company was hit hard. In one year, it went from a $200 million profit to a $200 million loss in 2008. There were too many Crocs in too many stores, and some people had grown weary of the comfortable, but not exactly fashion forward, design.
By early 2009, the company was almost out of cash and struggling to make payroll. It needed to find a way to attract new customers.
“We had to innovate our way out of the situation we had put ourselves in,” McCarvel said.
In other words, the company would have to expand beyond its classic clogs if it was going to survive.
“It’s so funny, someone actually stopped me in a mall and said ‘Where did you get those shoes? I love them,’ and I said, ‘These are Crocs,’ ” Saito said.
“[People] say, ‘Oh my God, where can I buy these?’ That’s the normal reaction we get from people,” she said. “There has been hardly any resistance.”