Crocs Chinese Shop Will Be Closed: Cave Shoes Are Not Good For Sale

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Still full of expectations, Crocs, once popular with cave shoes, now has to close shop in the Chinese market.

The reporter learned from the relevant head of China's headquarters in Carlo. It has spread to the Chinese market since last year's global launch. Although the number of specific outlets has not been disclosed, the Chinese market, as the most important position, has long been unable to escape after the Asia Pacific market plunged.

Carlo pointed out that the Chinese market has no loyalty to any product, causing the Asia Pacific market, which is one of the most important markets of the company, to face suffering. But in the industry, it is the key to the development of Carlo's development that its problems such as insufficient innovation, slow update speed and traditional ordering mode.

China closed shop rumours confirmed

The recent days of Crocco, a hole shoe manufacturer, must be very sad.

In addition to declining performance, the Chinese market, which is the most important position in the Asia Pacific region, is also showing signs of weakness. As a result, the restructuring plan launched last year has spread to the Chinese market, resulting in a direct result.

The news was confirmed by relevant officials of China's headquarters in Carlo.

The person in charge only said that customs stores were part of normal business adjustment, but did not disclose the number of specific outlets.

Although the Beijing Commercial Daily reporter failed to learn the exact figures, he learned from the clerk of a loco store in Beijing that the hole shoe had not been sold well.

"At the most time, we sell dozens of pairs a day, and now we can sell two pairs a day."

The shop assistant said.

In the latest three quarter earnings report released by Carlo, the company has also focused on the Chinese market.

It is reported that its revenue is $274 million 100 thousand, less than the $278 million expected by the market, down 9.4% from $302 million 400 thousand in the same period last year, and a net loss of $27 million 776 thousand in profit, far less than 12 million 9 thousand US dollars in the same period last year.

Carlo pointed out that the Chinese market has no loyalty to any product, causing the Asia Pacific market, one of the most important markets of the company, to suffer.

In the three quarter, Asia Pacific market revenues plunged 13.1% and fixed exchange rates also fell by 3.5%.

In contrast, the European market dropped by 17.4%, but the fixed exchange rate increased by 1.3%, while the North American market fell 2.2% in the three quarter, while the effect of exchange rate edged up 0.6%.

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It is understood that as of the end of the three quarter of this year, it launched a total of 557 stores worldwide, a year-on-year net loss of 28.

To strengthen core market business, Carlo said that some stores in vulnerable markets such as China will continue to streamline.

This means that the Chinese market will continue to encounter a closed shop crisis.

Three degree pformation without fruit

In fact, for Carlo, the decline in performance and net profit losses are not the first time.

After the decline in performance, this popular company has made many efforts, but the results of several pformation are not satisfactory.

In 2006, Carlo registered on NASDAQ [micro-blog] and set up the time.

IPO recorded the highest share price on the first day.

It was also in that year that Carlo went into the Chinese market.

The cave shoes with anti-skid, antibacterial and portable properties have been well received when they enter the market.

In 2007, the company valued at $6 billion.

However, the popularity of this fashion is coming fast, and with the popularity of the Chinese market, the loco shoes of Carlo's decline are fading away.

In order to boost the market, the same year, Carlo began its first pformation.

The strategy focused on upgrading the hole shoe and began to set foot in the sports apparel business.

The company has acquired Jibbitz, SamanthaBryan design companies and other enterprises specializing in the production of decorations for clocking shoes, allowing the cave shoes to be adorned with clothing and accessories, such as casual sportswear for adults and children.

However, this series of measures failed to keep the popularity of cave shoes.

In 2008, a single type of cave shoes appeared unsalable in the Chinese market and a large backlog of stocks. The team then began the second pformation: snow cave shoes, expand product lines, and open diversification strategy.

The so-called "snow storage" refers to the use of hole shoes as bait, placed on the inside of the shelf, so that consumers will first contact with other products of Crocco when they enter the store.

At the same time, the company has launched OceanMinded, CrocsWorkShoes and other brand names in China, including high heeled leather shoes, slope heels, sports shoes, winter boots and leather boating shoes.

However, these new categories were not recognized. In 2009, Carlo. Com had its first big loss since listing: $184 million.

Today, the valuation of Carlo has dropped from $6 billion to $1 billion 300 million.

According to the insiders, the rapid expansion of Carlo's products in the Chinese market and the miscalculation of its copycat products are the main reasons for its failure.

Yang Dayun, President of UTA Fashion Management Group, told the Beijing Commercial Daily that Carlo's product was acquired by a product in the short term. But with the trend of this trend, consumers will soon become bored.

In addition, the attributes of a single product in the process of the two extension, it is more difficult to get the recognition of consumers and the market. "After the hole shoe is not popular, Carlo wants to extend the product line to extend the product's comfort and light attributes to other categories of the group, which will make it harder for consumers who are bored with the hole shoes to accept it".

In addition, the market for other types of goods has been difficult for Crocs to break through in the Red Sea because of its long turnover on shoes.

In 2012, Carlo's loss was $3 million 607 thousand, and the net loss increased to $66 million 933 thousand in the four quarter of 2013.

In 2014, because of its poor long-term performance, Carlo had to launch the global strategic reorganization plan.

The content of the third pformation is simple: close shop.

Carlo will close or restructure the world, especially 75-100 of the 600 direct outlets focusing on weak markets such as China, and dismiss 183 employees (3.6% of the total staff), and substantially reduce product lines, reduce the original 350 product lines by 30%-40%, while reducing direct investment in small markets.

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Cave shoes resurface rivers and lakes

Last year, the "closed shop" theme of the pformation plan continued, and has spread to the Chinese market, while at the same time, Carlo has come up with another to deal with the declining performance.

It is understood that in January this year, CEO Gregg Ribatt, newly appointed Crocs, proposed to return the "Snow" hole shoes back to the market as a focal point for development, and to suspend the previous product category expansion plan.

Carlo: "cave shoes are a big business, but these years are ignored by us."

According to the TransparencyMarketResearch study, the value of the global footwear market is expected to reach US $211 billion 500 million by 2018, with a compound annual growth rate of 1.9% between 2011 and 2018.

Among them, the Asia Pacific region is expected to account for 30.1% of the total footwear market.

This growth is mainly achieved through innovative design, people's awareness of healthy and active lifestyle, population growth and

Cultural pmission and other ways to achieve.

China's report hall data also show that the average annual growth rate of per capita disposable income of urban residents in China over the next five years is greater than 7%.

With an analysis of 7% growth rate, it is expected that by 2016, the market scale of China's casual footwear industry will reach 125 billion 100 million yuan, with an average annual growth rate of 7.29%.

In the face of such a market, Crocs would not want to be absent. At that time, the shoes of the cave appeared again.

But for the return of cave shoes, the industry has expressed no interest.

Many people in the industry say that the failure of Carlo is largely caused by the "lifeline" of Chinese market cottage products.

Taking Nike, Adidas and other brands as an example, in the past decades of development in China, although it has always been the impact of imitation products, but due to the wide product line, with special emphasis on the development and promotion of "special edition, limited edition" and other high margin products, it has not lost the market under the impact of Shanzhai goods.

But clo Chi was caught up in the fist product by a copycat, resulting in a decline in sales.

Although Carlo has also tried to suppress imitation products by raising prices, it has had little effect.

Behind this phenomenon, it is the slow update speed of Carlo and the short tradition of ordering mode.

Earlier information showed that within the company, it took almost 18 months for new products to have a preliminary idea and final listing.

And some brand new product launch cycle is only 15 days.

In addition, the order pattern of the company is to open orders and place orders, which also delays the birth of products.

In Yang Dayun's view, for the masses of aesthetic weariness, the Locke shoes of cloco have not attracted much attention. Therefore, the key to the old men's meritorious service is to see innovation, which is related to the product innovation, updating speed and order pattern of Carlo's brand.