Stepping into Style with 'Crocs'
From Ugly Ducklings to Fashion Icons - The Journey of Three Guys and Their Foam-filled Footwear Phenomenon
“Weird-looking slip-ons with holes”, probably the first thing that comes to one's mind when the word "CROCS" pops up. And you are not alone.
Let me start with an interesting tidbit: when the Crocs co-founder first saw a prototype of the shoes back in 2002, the only words out of his mouth were, "These are ugly!"
But somehow, those same peculiar little foam shoes created a multi-billion-dollar publicly traded company and have been worn by celebrities, even gracing the runways of Paris Fashion Week.
Today's story is about how three people with zero experience in footwear were able to build such a wildly successful shoe company.
And just maybe, this is your cue to test your own 'weird' idea that doesn't make sense to the world ;)
How did the idea strike them?
How these three guys actually came up with the idea of Crocs is a very typical 'guy' story. Here's how it went: In 2002, Scott Siemens, Lyndon Hanson, and George Bodebecker Jr. were just three guys from Colorado on a fishing trip in the Caribbean Sea when they discovered a different kind of boat shoes from the Canadian brand Foam Creations.
These used a new foam technology, and the guys loved how comfortable and waterproof they were. This unique functionality was due to the distinctive material of Crocs, Croslite. Croslite is a proprietary closed-cell resin that has distinct advantages like being slip-resistant, lightweight, odor-resistant, and easy to clean.
So, like any red-blooded American dudes in a tropical country presented with a potential business opportunity would, they acquired the rights to Croslite technology and released their own version of it.
They called these new shoes Crocs because of how they could function both on land and in the sea, just like crocodiles. Pretty cool, right?
First Release
When Crocs first entered the marketplace in 2002, nobody cared – honestly, a lot of people just thought they were really ugly, and the high fashion scene was pretty cruel to them. "They're so ugly; how are they even in business?" was a common sentiment.
But you know what they say about bad publicity? 😈
The fact that people hated Crocs so much contributed massively to their insane rise to mainstream popularity in the early 2000s. They quickly went from being dismissed as stupid-looking boating shoes to becoming one of the most popular shoes in the world.
This initial success was due to two main factors.
First, its design was compelling. The Croslite material and the distinctive design of the shoe attracted the public.
Second, sales locations expanded rapidly. Within the first few years of its founding, it had expanded to many malls and retail stores, allowing for easy access to the shoes.
Crocs responded to their meteoric rise by rapidly expanding into new markets, opening retail stores, and releasing a ton of new product lines, along with the classic clog.
Like the Croc Mary Jane 🤨
And the Croc boots with fur 🤐
Also the high heel croc 🤯 🥲 ☠
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Okay, that’s enough.
Basically, Crocs were snapping up market share without any natural predators. So far, so good.
But then came the 2008 financial crisis that put a lot of businesses out of commission permanently, and it hit Crocs so hard that they basically went on the endangered species list. By the 2010s, Crocs were pretty much gone, just another one of those overnight trends that left the group chat without saying goodbye. And due to rapid overexpansion, it had to close dozens of stores in 2014. It began shifting sales from retail to online.
The Comeback
What initially seemed like promising rapid growth for Crocs turned out to be the tip of an unsustainable iceberg, leading to challenges from overexpansion and excessive inventory. However, against the odds, Crocs staged a surprising comeback.
Learning from their past mistakes, Crocs emerged stronger by streamlining their product lines, focusing on their core strength—the clog, a type of shoes that is produced by Crocs.
Celebrity Collaborations
Crocs hasn’t just been collaborating with random celebrities either. Unlike other companies that simply take money and throw it at whatever celebrity seems the most famous right now, Crocs often chooses celebrities that are legitimate fans of the brand.
This approach is exemplified by its partnership with Justin Bieber, who has been seen wearing Crocs on numerous occasions. When fans acknowledge that Bieber is engaging in these collaborations not just for the sake of money but because he genuinely likes the brand, the marketing appeal explodes.
In addition to celebrity endorsements, Crocs strategically collaborates with fashion designers and brands such as Christopher Kane and Balenciaga. Partnerships with such designers transformed the perception of Crocs from merely functional footwear to high-fashion statements.
Limited Edition Strategy
Crocs mastered the art of limited editions, a strategy popularized by major footwear brands like Adidas. By strategically limiting the availability of high-profile collaborations, Crocs capitalizes on the fear of missing out (FOMO), creating a rush among customers to secure these exclusive products. Notably, products like Bad Bunny's Crocs sold out within minutes, prompting fans to actually petition for more releases.
Cultivating Collectibles
Crocs didn't stop there and turned their celebrity-endorsed shoes into collectibles leading to the inception of a burgeoning community with enthusiasts amassing impressive collections of these distinct clog designs.
The Jibbitz Phenomenon
Apart from marketing, acquiring Jibbitz has also played a pivotal role in revolutionizing the brand's appeal and consumer engagement.
Jibbitz are small, detachable decorative charms that customers can easily insert into the holes of their Crocs shoes. There is a wide array of Jibbitz designs ranging from iconic characters, symbols, letters, and a multitude of themes spanning pop culture, hobbies, and fashion trends.
This extensive selection empowers customers to curate their Crocs footwear in a way that aligns perfectly with their personal style, passions, or moods. This customization perfectly complements Crocs' campaign of "Come As You Are," resonating with its values of individuality and diversity.
Celebrating Uniqueness
Crocs discovered their strength lay in their polarizing nature – people either loved or hated them. Embracing this divide, Crocs began championing a message of acceptance, individuality, and creativity. They encouraged Crocs enthusiasts to see themselves as bold and one-of-a-kind, promoting a carefree attitude that doesn't worry about others' opinions.
Crocs strategically turned their unconventional and, to some, unattractive design into a symbol of strength. They market their clogs as a distinctive way for consumers to express acceptance of their imperfections while taking pride in their uniqueness and individuality.
What sets their recent surge in popularity apart is that no one is questioning their unconventional appearance; in fact, that's precisely why people love them. Wearing Crocs has become an unfashioned fashion statement—a declaration of independence from societal norms of beauty. It's a way of saying you'll do what you want because you're an individual with your own thoughts and feelings. Choosing to be an individualist has become a trend in itself.
The importance of carving a niche for yourself
In a world filled with sporty and casual outfits, Crocs have made their own unique space, breaking the usual fashion rules. These shoes have become a daily choice for many regular folks, like shift workers, nurses, and hikers, thanks to their comfort and practicality. Whether you're on your feet for long hours or out on a trail, Crocs, with their affordable, lightweight, waterproof design, have become a go-to option.
Crocs had a great comeback during the pandemic when lots of clothing companies were struggling. In 2020, which turned out to be their best year ever, people turned to Crocs for both comfort and style and thus many people attributed its success to the pandemic. But they have continued their streak of profitability and growth even after the pandemic got over. In 2023, they made a whopping $3.95 billion in sales
Fashion trends change a lot, and nobody knows when Crocs might go out of style again as a fun and unique shoe. Even though the pandemic is over, it seems like Crocs are here to stay. They've shown they can handle the ups and downs of fashion, and they're not going away anytime soon!
Product Insight 🧠
Google Maps 🗺️
I am sure that you use Google Maps frequently, but not many know that when it was introduced for the first time, it didn't receive much attention because apps like Yahoo Maps and MapQuest were already sufficient for their purposes.
But Google chose to completely redesign Google Maps and launched a satellite view, which was just an aerial view captured from a low-flying aircraft. It soon became a popular feature of Google Maps since most users just like playing around with Satellite Mode giving one the impression of being a top-secret spy or something.
And, of course, Google Maps coming pre-installed in smartphones with Android, the most widely used operating system globally, made it ascend to the top of the ladder as the most used navigation application.
Now, onto the important bit: How does Google Maps generate money?
There are two primary categories that comprise Google’s Maps monetization strategy.
Considering that Google’s primary business is advertising, I doubt you would be shocked to learn that the first category consists of ads. However, it’s actually done in a very elegant manner.
Firstly, when you search for something like "near me" on Google, the top results you see are often paid ads. Companies pay Google to list their locations at the top of the search results, contributing to Google Maps' revenue.
Businesses can expand their brand presence in a subtle, non-intrusive way, and users can locate them more readily with their logos. However, that is only part of the story.
When you use the map and notice different-sized pins for businesses like restaurants, shops, hotels, and petrol pumps, those larger, more prominent pins are a result of paid promotion. Businesses pay Google to promote their pins, making them stand out when users zoom in and out on the map.
APIs - Google's other revenue stream - is significantly more intriguing.
Companies pay for Google’s Map APIs, such as when an avenue’s location is displayed on a small map on a restaurant or bowling alley's website. The most frequently used Google Maps API has nothing to do with maps at all.
Imagine if Google Maps were implemented by Uber, Airbnb, Zomato and many for delivery, pickup, drop, and asset tracking. Now if we assume Google Places to be reasonably priced, around roughly three cents per use so if you use it about 10 times a year, that generates $0.30 in income for Google per user.
With just one API and 3 billion users, Google could make around $1 billion in revenue annually. Adding hundreds of additional APIs and use cases could potentially contribute to a total revenue of tens of billion.
Hiring 📢
Multiple openings at WintWealth: https://bit.ly/3S0aPCd
Founder's office role at Flam: https://bit.ly/48XcjUN
Associate Product Manager hiring at Lenskart : https://bit.ly/3O2ViR8
Product Manager hiring at HitPay(YC S21): https://bit.ly/3O7CzDN
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Those heels aren't Crocs brand, they're Balenciaga.