Thursday, September 21, 2017
Crocs: An Example of Market Simplicity
I'm the expert in Strategic Simplicity℠, and I work with clients in all four areas of Strategic Simplicity: Market Simplicity, Decision Simplicity, User Simplicity, and Operational Simplicity.
Yesterday, I read an article in the Chicago Tribune about Crocs called "Crocs' billion-dollar strategy: Stay ugly". It was a good example of market simplicity.
The Crocs' fad wore out about 10 years ago, and they tried to diversify into other styles. But they suffered heavy losses and at least one prominent analyst felt that the company "was toast".
But, Crocs was able to generate a turnaround by focusing around their "ugly" shoes.
They realized that their classic clogs were popular in two sub-markets: sports teams (for wearing before/after competitions) and hospital workers.
Also, many people still preferred comfortable over fashionable for casual foot wear.
So, Crocs stopping making many of the new styles, and shifted back to their classic clogs—adding more colors and buttons (such as Marvel, or Disney characters).