Crocs’ e-commerce efforts bearing fruit
More Chinese consumers are wearing shoes produced by Crocs Inc, and the footwear maker says China has become one of its fastest-growing market, especially through e-commerce platforms.
The Colorado-based company said China, which is one of its top five markets, represents the greatest opportunity for growth. Since entering the China market in 2006, Crocs has witnessed significant sales growth. Now, it has more than 400 stores in the country, and the majority of them are partner operated.
This year, Crocs collaborated with Chinese-American designer Vivienne Tam during Shanghai Fashion Week in April, and introduced styles specifically designed for China — the first time it has produced co-branded products for a local market — to show its commitment to the nation.
“China is a massive market full of opportunity and potential. We will look to align store types to key commercial areas and continue to focus on the top 30 cities in China. We will also go deeper into cities that we think will constitute a major growing force,” said Frankie Taylor, general manager of Crocs China.
“Besides, stores growth is prioritized globally for Crocs, and the primary growth will be in China. We will continue to drive greater brand recognition across China,” he said.
Last year, Crocs’ revenue grew each quarter, and for the full year, revenue reached $1,088.2 million, adding 6.3 percent over 2017. The company did not disclose specific figures for China. Particularly, its global e-commerce business grew 22.5 percent year-on-year.
Crocs said e-commerce is the fastest-growing area of its business, and this is expected to remain the case going forward. Over the next few years, the company plans to invest more in e-commerce to further drive sales growth. In China, it hopes to cooperate with more e-commerce retailers.
“While we continue to see strong e-commerce growth in China, we found that Chinese consumers have become more sharpsighted and moderate. We need to understand the economic, societal and even demographic changes shaping the landscape of Chinese consumers,” Taylor said.
“We have rapidly adjusted our approach to wholesale and e-commerce to preserve margins, while focusing on more festivals and events we find to be more profitable and have a greater impact. The summer period is the peak time for Crocs,” he said.
Neil Wang, president of consultancy Frost & Sullivan in China, said the demands of Chinese consumers have become more diversified. Unique designs and concepts are well aligned with the latest buying trends of Chinese consumers. Their consumption ability, notion and willingness have resulted in the change in consumption structure in the country.
Taylor said: “We do not think it’s necessary to educate Chinese consumers in terms of fashion. We just want to encourage them to be eclectic, comfortable, colorful, and most of all, unique.”