27 Jul. 2009
CROCS’ RECOVERY TO START FROM EUROPEAccording to a recent article published by Washington Post, Crocs has been suffering recently. In fact it swung from a profit of $168.2 million in fiscal year 2007 to a loss of $185.1 million in 2008.
Despite such difficulties European sales are registering significant results. In Italy, according to a spokesperson in the company’s sales network, Crocs registered 20% more reorders in s/s 2009 compared to s/s 2008. In the last six months the company is said to have sold 500,000 pairs sold through its 1,800 multibrand store network. Moreover, significant sales results are being achieved in the Benelux countries as well as Germany and Austria.
No less important is the fact that Crocs’ new models' launch and redesign are being guided by Italy, where design and R&D are managed for the rest of the world. At present the collection offers about 50 models that include, in addition to their “classic” Cayman clog model, flip-flops, boots, ballerinas and platform shoes.
Among the reasons for Crocs’ slowing sales was a huge amount of counterfeit models circulating in the market. In 2008, in Italy the company discovered about 1.5 million pairs of counterfeited shoes. In 2009 it reduced the number of fakes to about a half a million shoes. “This was possible, thanks to a close collaboration with local police and authorities and to a close study of parallel imports,” a spokesperson for the company said.
One other reason was Crocs’ price points. For this reason, by s/s 2010, the company will have prices by about 20%. A pair of Caymans, for instance, will cost €36 instead of €45.
—Maria Cristina Pavarini
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