Crocs Struggles to Find the Right Footing in China

on October 31 2014 | in Fashion | by | with No Comments

Crocs

Crocs, the U.S. footwear company, is facing a difficult year in Asia as sales have declined in China and Japan.

“Revenues in the [third] quarter were in line with our expectations in three out of four regions. Revenue declined slightly in Asia, where results were substantially impacted by weaker performance in our China wholesale and retail businesses,” said President Andrew Rees.

However, web sales in the Asia-Pacific region grew in the quarter, up 21.1 percent year-over-year to $3.231 million from $2.669 million, according to Internet Retailer.  For the nine-months ended September 30, Asia web sales grew by 33.3 percent to $10.070 million from $7.553 million.

The company has not announced a new CEO since John McCarvel, the former CEO, left in April, reports WWD. McCarvel had high hopes for the China market because of the country’s growing middle class and their demand for comfortable shoes. However, he also recognized Chinese consumers are “finicky” and they are “more likely to window shop than buy.”

Counterfeit products in China have also been a major problem for Crocs, although the company said it doesn’t have an estimate for how much this issue is affecting sales, according to The Wall Street Journal.




image credit: flickr/thomas schewe

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