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The origins of the very first Crocs shoes/material were from Canada but it took the guile of Americans (who started as distributors) to globalize it. The original croc shoe had 13holes and so a stay-at-home mum decide to add some decorations on those "ugly" shoes for her kids. Then the founders of Crocs Inc bought over the brand/patents owner and also the decorative part of the business (Jibbitz).
One noticeable thing would be Private Equity adding tremendous value to the business, in this case Blackstone had the relevant connections across its vast array of businesses/relationships to make HR changes which worked.
Crocs are not ugly per say but more of a "hostile brand" - brands that largely only appeal to its own loyal audience (which didn't include me). Other kind of hostile brands are like Hollister "Just for the cool kids" or a more closely associated Birkenstock "Prizing comfort over fashion". My primary school going daughter loves Crocs and so I would assume that the "hostile brand" tag has probably been much diminished and it is more "mainstream" now. So I wonder what will be the new "hostile brands" for her generation?
Crocs’ remarkable turnaround: From ugly shoe fad to growth star
Overexpansion and the 2008 crash: Trouble followed the initial euphoria. Crocs overproduced inventory and expanded into too many products and stores, assuming demand would keep climbing. When the 2008 financial crisis hit, consumers cut back on non-essential purchases. Crocs suddenly found itself with mountains of unsold shoes. In 2008, the company lost US$185 million, and its stock plummeted from the high-US$60s to just about US$1 per share. The company faced shareholder lawsuits and even auditor warnings about its survival.
By 2014, it was clear that Crocs needed a fundamental overhaul. A US$200 million investment from Blackstone provided fresh capital and brought in new leadership focus. The CEO, who had overseen the overexpansion, announced his retirement. The mandate was to get back to basics and prioritise profitability over raw sales growth. Enter Andrew Rees, a seasoned footwear executive who joined Crocs in 2014 and became CEO in 2017. Rees would go on to orchestrate Crocs’ mega-turnaround, embracing a strategy of simplification, cost cuts, and a return to the core product.
Mass personalisation via Jibbitz: Another pillar of Crocs’ revival was turning a humble accessory into a high-margin engine. Jibbitz are small decorative charms that customers can pop into the holes of their Crocs. Crocs acquired the Jibbitz business in 2006, but it was an afterthought for years. Under Rees, Jibbitz was reimagined as a form of self-expression, especially for Gen-Z. Instead of just kiddie trinkets, Jibbitz became mini ‘identity statements’, tacos, rainbow flags, favourite characters, band logos – that let wearers customise their clogs.
https://fifthperson.com/crocs-turnaround...owth-star/
One noticeable thing would be Private Equity adding tremendous value to the business, in this case Blackstone had the relevant connections across its vast array of businesses/relationships to make HR changes which worked.
Crocs are not ugly per say but more of a "hostile brand" - brands that largely only appeal to its own loyal audience (which didn't include me). Other kind of hostile brands are like Hollister "Just for the cool kids" or a more closely associated Birkenstock "Prizing comfort over fashion". My primary school going daughter loves Crocs and so I would assume that the "hostile brand" tag has probably been much diminished and it is more "mainstream" now. So I wonder what will be the new "hostile brands" for her generation?
Crocs’ remarkable turnaround: From ugly shoe fad to growth star
Overexpansion and the 2008 crash: Trouble followed the initial euphoria. Crocs overproduced inventory and expanded into too many products and stores, assuming demand would keep climbing. When the 2008 financial crisis hit, consumers cut back on non-essential purchases. Crocs suddenly found itself with mountains of unsold shoes. In 2008, the company lost US$185 million, and its stock plummeted from the high-US$60s to just about US$1 per share. The company faced shareholder lawsuits and even auditor warnings about its survival.
By 2014, it was clear that Crocs needed a fundamental overhaul. A US$200 million investment from Blackstone provided fresh capital and brought in new leadership focus. The CEO, who had overseen the overexpansion, announced his retirement. The mandate was to get back to basics and prioritise profitability over raw sales growth. Enter Andrew Rees, a seasoned footwear executive who joined Crocs in 2014 and became CEO in 2017. Rees would go on to orchestrate Crocs’ mega-turnaround, embracing a strategy of simplification, cost cuts, and a return to the core product.
Mass personalisation via Jibbitz: Another pillar of Crocs’ revival was turning a humble accessory into a high-margin engine. Jibbitz are small decorative charms that customers can pop into the holes of their Crocs. Crocs acquired the Jibbitz business in 2006, but it was an afterthought for years. Under Rees, Jibbitz was reimagined as a form of self-expression, especially for Gen-Z. Instead of just kiddie trinkets, Jibbitz became mini ‘identity statements’, tacos, rainbow flags, favourite characters, band logos – that let wearers customise their clogs.
https://fifthperson.com/crocs-turnaround...owth-star/