The Tragedy of the Crocs Company Demise
The WaPo reported that the company making Crocs is going down and Rob Horning, Patrick Appel and Ezra Klein are treating this as the just desserts for an ugly shoe that representing a fad in the bubble. But while the company may have made business mistakes, the Crocs story is one of shoes based on new technology and designs that protected kids' feet from injury and infection (based on antimicrobial foam) which became fashionable largely in an anti-fashion statement. As to why the company is running into trouble, there is the story of overexpansion, but then there's this from the WaPo story:
they were a cheap investment (about $30) that felt good and promised to last forever... the problem with a nearly indestructible product is that shoppers rarely need to replace it...Who needs a second pair of Crocs in a recession, particularly when the first pair is holding up just fine?
So you have a company based on new technology that delivered value and is running into problem because its product is too durable? Not a company that should be condemned or lumped in with bubble-based financial firms or other luxury fads of the last few years.
They're ugly. I udnerstand why hospital and restaurant workers like them when they're on the job but... come on... They never belonged in the mainstream.
July 18, 2009 7:58 PM | Reply | Permalink
Tragedy? No more than the hoola-hoop, which died once everyone had one. It seems to me that the problem is that they stopped with one ugly shoe style. If they had good thinkers, they might have made some innovations and improvements.
I guess what I am really wondering is this: Why are they going bankrupt at all? They surely made many more millions off those shoes than it cost to produce them. Why didn't they just shut down once they realized that no one wanted 10 pair of the things, and go on to another idea?
Tragedy? I don't think so. More like one-trick pony than went lame.
July 18, 2009 8:08 PM | Reply | Permalink
Actually, they do have more than one style...some of the sandals are downright cute. I have several pairs of the original Crocs, in different colors, just because they are so incredibly comfortable to wear and I'm not particularly style conscious, never have been.
Plus, they give away LOTS of their product in 3rd world countries. If they really are going out of business, I will be sad.
July 18, 2009 8:39 PM | Reply | Permalink
I couldn't have survived my pregnancy without my crocs. In addition, I currently am in love with my crocs flip-flops.
July 18, 2009 9:39 PM | Reply | Permalink
There are 300 million Americans. If they made the brave declaration of Henry Ford nearly a century ago, they should be okay, "Two pairs of shoes in every closet!"
$30 for a glorified piece of plastic? There's something else wrong with this picture, and it's not the Depression 21c. If yu are eveporating because you can't sell more then 600 million pairs of shoes, it ain't the shoes.
July 18, 2009 8:58 PM | Reply | Permalink
I think the problem with Crocs is--once again--WalMart. I bought a pair of look-alikes for $6 and I love them. They're lightweight and have now molded to the shape of my feet and I can't live without them.
Sorry about that.
July 18, 2009 9:42 PM | Reply | Permalink
Which? Are you sorry for supporting a Chinese knock-off, or Wal-Mart, China's factory outlet store here in the US?
July 19, 2009 8:48 PM | Reply | Permalink
This light bulb has been burning continuously for 108 years now. I believe the company went out of business in the '30s, when they couldn't attract any new customers.
Designed obsolescence is a fact in manufacturing but is one of those "benefits" of capitalism that just isn't discussed. Unfettered capitalism fosters the consumerist, disposable lifestyle that we, and the rest of the world, are now (figuratively and literally) choking on.
July 18, 2009 9:29 PM | Reply | Permalink
Chacos. Amazing sandals. Durable. Made in the USA. But were $100 a pop.
Now, after decades of upholding a standard, they are made in China, lighter, and guaranteed to not evoke the following that the original had.
It's not that times have changed, it is just that we don't value things that are well made.
July 19, 2009 1:54 AM | Reply | Permalink
What will Mario Batali do?
July 20, 2009 11:14 AM | Reply | Permalink
I'd be kinda surprised if no one buys the factories. And the saturation really should have been expected, but it's really hard (even now) to tell Wall Street "Our sales are going to level off, and our company is going to stay pretty much the same size from now on, so you'll just have to be satisfied with operating profits instead of capital gains."
July 20, 2009 1:05 PM | Reply | Permalink
Bingo!
The modern paradigm for a public company is grow or die. That's a Wall Street phenomenon. And there is no in between.
And that is a tragedy.
-- ARG
July 20, 2009 2:16 PM | Reply | Permalink
The problem with Crocs is they were a fad. Fads fade out.
No one identified Crocs with anything other than their long-lasting shoes. Without additional products to expand their offerings, what else could you expect to happen?
July 20, 2009 4:59 PM | Reply | Permalink
I am sorry to hear this. I ordered a new pair of orthotic sandals from my Dr. recently. They are thongs which I've not been able to wear for a long time due to available products lack of foot support.
When they arrived, I found they were Crocks "Bite" thongs with my custom foot orthotic incorporated into them. I lived in these while out on a business trip up and down the west coast last week and can say they were absolutely wonderful. I even went for a short hike in them up the Rogue River Gorge. I will regret not being able to get any more of them.
I will say I have a pair of slip-on Air Walks, similar to the most famous Crocks style, I've had several years and used (with my slip-in orthotics) for gardening. They also are very well made and useful, not to mention comfortable. Air Walks are made in America I believe. Any one know of their business condition?
July 26, 2009 6:15 PM | Reply | Permalink
Oh, by the way, I agree with Gregorzap's comment. I never will set foot in a Mall-Wart for very good reason.
July 26, 2009 6:18 PM | Reply | Permalink