Crocs Out, Flip Flops In (Thank Goodness)
Crocs are virtually indestructible, great selling point, but bad for business
By ELVIRA SAKMARI
Updated 3:13 AM EST, Mon, Jul 27, 2009
If you love Crocs, you can blame the economy because it looks like those plastic-looking foam clogs are losing ground to flip flops.
Crocs took the world by storm in 2002, much to the dismay of fashionistas everywhere, and company sold 100 million shoes in seven years. (That's a lot of Flintstone feet walking around.)
The law of supply and demand took hold and the company expanded. y the economy went south and customers scaled back on the $30 investment in colorful foam footwear, opting instead for cheaper flip flops.
In 2007 Crocs Inc. showed a $168.2 million profit, which swung to a $185.1 million loss for 2008. Now the company is in financial peril; it has until September to pay off its debts.
Seems the problem with Crocs is they're nearly indestructible. While that's a great selling point, it could lead to the company's downfall since adults don't really have a need to buy a new pair.
The company does have a plan to stay afloat, the Crocs CEO tells the LA Times. The shoe maker will market to the medical field, caterers and people with foot issues.
While no one wants to see a company fail and people lose jobs, we can't help but think fashion experts are happy to see the foamy footwear fall off in popularity -- we know we are.
First Published: Jul 23, 2009 12:05 PM EST
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