Cave Shoes Resurfaced, But Crocs'S Performance Is Not Very Good.

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 want to be acquired in the two extension process.

And the recognition of the market is more difficult.

Because of the long time spent on the shoes of the cave, the market of other kinds of goods has become a difficult Red Sea for Crocs.

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.

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.

Last year's "

"The theme of the pformation plan is still continuing, and has spread to the Chinese market, while at the same time, Carlo has come up with another plan 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: "

It's 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, active lifestyle, population growth and the spread of retail culture.

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.

Some brand new products 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.