Regardless of how you might feel about their aesthetics, there’s no disputing that Crocs have ascended to a level of fashion phenomenon rarely seen, owing to its combination of comfort, price point and easily recognizable appearance. But despite their ubiquity that seemingly defies demographic, the company is in the throes of financial turmoil and may very well be on its way to obscurity.
As the Washington Post reports:
The company swung from a profit of $168.2 million in fiscal year 2007 to a loss of $185.1 million last year. In its annual report, Crocs said that an independent auditor expressed concerns about “conditions that raise substantial doubt about our ability to continue.” Its stock price has plummeted 76 percent.
And while some of this can certainly be attributed to the recession, the biggest contributing factor in the company’s reversal of fortune might be the quality of the shoe itself. Even as the product reached a saturation point, forcing the company to ramp up manufacturing infrastructure to meet demand, its nearly indestructible design meant that previous customers weren’t lining up to buy a replacement pair.
As much as creating a long-lasting product, and thus bucking the trend of built-in obsolescence, is an important (and necessary) consideration, given finite resources and environmental impacts, the business model that accompanies this forward thinking needs to evolve as well. Particularly when you’re treading the fine line between building a classic and a fad.
[via murketing]
[image via lizjones112 on Flickr]
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