Crocs: A Pioneer for Online Businesses During COVID-19

Businesses have been hit the hardest by COVID-19. Many shops, restaurants, and cinemas have shut down or temporarily paused operations due to a significant shift in consumer behavior—moving online. One of the main reasons for this shopping behavioral shift is due to regulations for social distancing and avoiding large crowds, hence the lack of in-person shopping for the past two years.

In a recent article published by Forbes, they highlighted one particular business that was able to outshine others during the third quarter of 2020—Crocs. Crocs is a footwear company that is popular for the clogs. In the past, Crocs experienced a fall in sales revenue; their lack of research and development for their products as well as their disregard for trends contributed to their “downfall.” However, COVID-19 created a unique chance for Crocs to get back into the market, particularly with online consumers.

1 Celebrity Partnerships

Understanding the impact of celebrities and influencers on young consumers of the 21st century, Crocs quickly learned to partner up with well-known names in the media industry. Recently, they released two different collab collections with Spanish pop star Bad Bunny and rapper Post Malone, which both garnered attention from respective fan bases.

Through social media promotion of their new collaborations with Crocs, many consumers immediately wanted to get their hands on the limited edition clogs created by their favorite celebrity. Therefore, this “hype” caused many consumers to sweep clean Crocs’ inventory, pushing them back into a competitive stance amongst the footwear market.

2 New Accessories and R&D Implementation

Due to the importance of following trends and appealing to the younger generation, Crocs introduced a new accessory—a Jibbitz charm to customize one’s clogs. These Jibbitz charms were both trendy (avocado charm, BLM charm) and cheap at USD $3.99 per charm. The idea that Crocs put forth to their consumers was that the Jibbitz was a trendy feature and addition to normal clogs, creating a stylish yet comfortable footwear design.

3 Understanding Promotion

While COVID-19 continued to disrupt business operations in the United States, China was slowly opening up local malls and stores. This allowed Crocs to reopen 350 of their partner stores… and they began promoting their latest products to a Chinese audience. Famous Chinese actress Yang Mi went to a mall and gave a presentation on how to style clogs, which intrigued many potential consumers. Similarly, with this “demonstration” approach to marketing their products, Crocs’ revenue was nothing short of impressive during times of economic turmoil.