Crocs are one of the few commodities to survive the chaos of the supply chain
‘Ugly’ comfortable shoe brand Crocs managed to avoid Covid supply chain problems due to a simple fact, says clog CEO Andrew Rees during brand blockbuster outage in the last quarter – they are easy to build.
The Crocs are made up of three pieces that can be easily assembled, so when the brand’s manufacturing lines shut down in Vietnam during pandemic lockdowns, the company was able to easily move elsewhere and keep the Crocs off the production line.
A number of retailers, including Nike and Lululemon, also with factories in Vietnam, have struggled after this year’s pandemic shutdowns. Retailers have been caught off guard not only by manufacturing slowdowns, but also by longer delivery times, higher transportation costs and now delays at ports, due to staffing issues.
âOne thing we learned from Covid, I think, is really important for people to understand: our shoes are really simple, and so the factories ramp up could be very, very fast,â Mr Rees said during the call for the company’s third quarter 2021 results.
Crocs sales increased 73% in the last quarter to $ 626 million, from $ 362 million in the same period in 2020.
Although the Vietnamese factories are now operational again, Crocs has extended its risk of a manufacturing pandemic – the brand now also manufactures footwear in China, Bosnia and Herzegovina and Indonesia. The company also plans to avoid recent container issues for 2022 by airlifting cargo in the spring and summer.
Crocs bridged the gap between basic and luxury markets, becoming the âitâ shoe of the pandemic. Crocs were featured during Fashion Week, at the Oscars, and have been worn by everyone from Helen Mirren and Kendall Jenner to Bad Bunny, Nicki Manaj, Post Malone and Drew Barrymore, among countless others during the pandemic.
Recent Crocs collaborations include those with Christopher Kane, Liberty London and Justin Bieber.