Crocs shoes - 'bad invention' makes billions of dollars

Despite many people criticizing it and being voted by Time as one of the "worst inventions" because of its uselessness, Crocs still earns billions of dollars every year.

In fashion history, controversial trends are not uncommon. But few footwear have encountered such a polarizing reaction as Crocs. For more than 20 years, these cheese-block-like shoes have garnered legions of passionate fans and haters.

But no matter what, Crocs is still a phenomenon of modern fashion and does good business. Just last year, the brand earned a record $3.6 billion in revenue. But how did they become so successful?

Selling ugly but expensive shoes

Crocs was born in 2002, after a trip to Mexico by co-founders Scott Seamans, Lyndon Hanson and George Boedbecker Jr. At that time, Seamens introduced to his two companions the rowing shoes he developed with the company Foam Creations (Canada).

The shoes are made from Croslite, a new type of plastic that is lightweight and odor-resistant. Initially considered bad, the shoe is still sold because of its dual function of being easy to wear both on land and in water, like the crocodile that inspired the brand, in English "crocodile".

A Crocs shoe model. Photo: X Crocs

The shoe became a favorite of chefs, gardeners, nurses and children, but quickly attracted celebrities like Jennifer Garner, Oprah and Michelle Obama. Despite taking the shoe industry by storm, Crocs are still considered by some to be ridiculous shoes.

Idiocracy (2006) director Mike Judge said costume designer Debra McGuire decided to have the characters wear Crocs because they were "horrible plastic shoes" that no one in their right mind would buy. perfect choice for a movie about a stupid dystopian society.

In 2010, Time magazine listed Crocs as one of the 50 worst inventions. Elizabeth Semmelhack, Director and Senior Curator at the Bata Shoe Museum, said Crocs "are not considered a hot new fashion trend, but are welcomed as a truly interesting and unique shoe."

Nowadays, celebrities like Nicki Minaj, Ariana Grande, and Kendall Jenner all wear Crocs. The brand has also had partnerships with both Hilton and Lohan, who again have never been seen wearing them. On TikTok, the hashtag for #crocs has more than 9.6 billion views.

According to Lucy Thornley, Crocs' global vice president of trends, consumer, design and product, there are two reasons why even though the shoes are not beautifully designed, they are considered interesting and cool to buy. First, Thornley points out that younger consumers like Crocs shoes, especially college students and high school students who participate in sports teams or school clubs. "This emerging trend demonstrates the growing popularity of Crocs as an expressive statement, not just a shoe," she said.

Second is success in the design stage. In 2017, Christopher Kane became the first designer to collaborate with the brand, marking a "defining moment" in Crocs becoming more relevant to the mass market. "Christopher wanted to turn something ordinary into something extraordinary," Ms. Thornley said.

Christopher Kane adjusted Crocs' classic design from practical to more trendy, giving the brand a highlight that attracts more customers. Crocs from the original beach rubber clog design have many more designs such as high soles, loafers and even ballet shoes. "Change gives people an invitation to boldly express themselves while knowing they can be both on-trend and comfortable," Thornley said.

Justin Beiber took a photo wearing Crocs shoes. Photo: Instagram Justin Beiber

After collaborating with Christopher Kane, Balenciaga literally took Crocs to the next level, releasing $850 pairs of the design. Since then, the company has collaborated with many designers and style experts such as Liberty London, Vivienne Tam, Takashi Murakami, Justin Beiber, SZA, Bad Bunny, Post Malone, Diplo, Wu-Tang Clan.

The company also forged countless brand partnerships, including KFC, MSCHF, Lisa Frank, Barbie, Benefit Cosmetics, Hidden Valley Ranch, General Mills and Clueless. In 2021, Salehe Bembury, a former Versace designer, collaborated to put Crocs one step further on the fashion map.

But things haven't always been easy for Crocs. Like many other companies, they struggled during the 2008 recession, but then recovered, until the same thing happened again in 2012, when sales in foreign markets were lower. expected.

Another challenge is that the company has a large number of haters. To keep "anti-fans" from being detrimental to business, Crocs organized a campaign in 2017 to fight against corporate bullies. They hired spokespeople like Drew Barrymore and John Cena to talk about their personal experiences of being bullied. In many ways, the brand calls its detractors bullies at a time when many organizations, from Cartoon Network to the US government, are launching anti-bullying campaigns.

This strategy works. After several years of losses, Crocs grew 6% in 2018 and 13% the following year. "Yes, we are ugly!", said Heidi Cooley, CMO of Crocs frankly. "But the important thing is that we are unique. We realized this is exactly what impresses our fans, that they also see themselves as one of a kind," she declared.

In recent years, Crocs' business situation has been more favorable. According to the New York Times , the company's annual sales have increased 200% since 2019, thanks in part to the pandemic. Crocs aren't the only "ugly" shoes whose sales are up. Customers sought more leisure-friendly, at-home fashion, helping Crocs and other comfortable shoes like Ugg, Tevas and Birkenstock explode.

And at that stage, Crocs has a golden opportunity to convince those who previously hated it. Content creator Tina Estrella decided to buy her first pair of orange Crocs. "I thought I'd wear them around the house. And before long, you'd be taking them to the grocery store, pairing them with dresses," she said.

Personalized "weapon".

Besides flexibility and comfort, one of the things that makes Crocs popular is that the wearer can easily decorate it themselves to express their style and personality, unlike the customer who is likely to be "confronted". " designed in traditional shoes.

In 2005, Crocs sold 6 million pairs. That same year, a woman named Sheri Schmelzer came up with button-shaped decorative accessories that stuck into the round holes in her children's shoes, creating Jibbitz. Realizing the prospect, Crocs acquired Jibbitz for $10 million just the following year. Today, Jibbitz accessories are a powerful "weapon" of the company.

Crocs shoes with Jibbitz attachment. Photo: Crocs

Crocs wearers also do not have to buy genuine Jibbitz, the round holes on this type of shoe allow them to decorate anything they like to personalize. Marisa Ravel, Founder and Creative Director of fashion accessories brand Laser Kitten, said she made fun of Crocs when they first launched. "I thought they were the ugliest shoes I had ever seen," she recalls. But now she owns 3 pairs, with many homemade decorative accessories.

One Halloween, content creator Tina Estrella decided to decorate her Crocs with this theme. She attached ghostly Jibbitz, a necklace and spikes to her shoes. Estrella's video of how to decorate her own shoes went viral on TikTok, attracting more than half a million views. "I feel like a lot of young people are more willing to express themselves, and Crocs are the shoes that were created to do that," she said.

During the epidemic season, Crocs conquered more people. But the truth is that there are still many people who hate it. Some celebrities such as Naomi Campbell, Dua Lipa and Lil' Kim have all publicly opposed these shoes. And Zoe Kravitz convinced Channing Tatum to stop wearing them.

But no matter how much it is loved or hated, Crocs is still on a good growth path. The financial report for the second quarter of 2023 forecasts that this year's revenue could reach 4 billion USD at current prices, an increase of 12.5-14.5% compared to 2022.