Koi fish-painted clogs... That's the gem of a shoe featured on page #1 of Crocs' earnings report. The polarizing fashion icon's stock is up 75% over the last year. And even though quarterly sales only rose 4% (which dropped shares Tuesday), the CEO is still enthused about a "great start to 2019." He's into its "norm-core" marketing moves...
Millennials are out... Gen-Z is in. Crocs used strategic marketing to boost its brand rep among Americans under 24. It became the #13 most popular footwear brand for the post-Millennial crowd, up from #38 two years ago. Here's how:
- Absurdly viral products, like high-heeled Crocs last summer and the new fanny pack Crocs.
- “Come as you are” ad campaign to get buyers comfortable with the inevitable public judgment of wearing Crocs.
- A-minus list celebrity ambassadors, like John Cena, Zoey Deschanel, and Drew Barrymore (Drew did an online musical for Crocs).
- Local foreign ambassadors in China, Japan, and South Korea kept that celeb vibe going (now 30% of sales are in Asia Pacific).
Crocs' comeback strategy: Do less... The brand was close to bankruptcy in ‘09, so it streamlined everything. It shut down locations, ended non-core product lines, and outsourced shoe production to 3rd parties. Going back to “Crocs' DNA” — Clogs and sandals — started its recovery. Now it's comfortable enough for fanny Crocs.
FYI, shaving cream in Crocs is now a thing.