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Fad or Icon? How the Crocs brand crashed & burned

33 pointsby andrewbaronover 15 years ago

10 comments

andrewljohnsonover 15 years ago
While the stock price has certainly crashed, Crocs is still worth $650M dollars: <a href="http://www.google.com/finance?client=ob&#38;q=NASDAQ:CROX" rel="nofollow">http://www.google.com/finance?client=ob&#38;q=NASDAQ:CROX</a><p>If that's a fad, I hope I can create a fad business someday.<p>Maybe the Crocs business strategy was exactly right - milk it while it's trendy, and then keep a good business at the end.<p>It's not like these shoes are Nintendo Wiis. There is absolutely no limit on how many you can produce. If Crocs hadn't saturated the market, then all those knock-offs would have stolen more of the total money to be made on the idea.
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danthemanover 15 years ago
I could understand these as cheap water shoes for children. I've been a fan of these watershoes for adults: <a href="http://www.rei.com/product/780680?cm_mmc=cse_froogle-_-datafeed-_-product-_-780680&#38;mr:trackingCode=C837B1FE-FB85-DE11-B7F3-0019B9C043EB&#38;mr:referralID=NA" rel="nofollow">http://www.rei.com/product/780680?cm_mmc=cse_froogle-_-dataf...</a><p>They stay on really well, and when combined with neoprene booties provide the best cold water/mountain river shoe I've ever found. I use these when I go kayaking or try to hike up a stream or creek.<p>They're not that much more expansive, but provide a significantly improved experience, and look a lot nicer. Overall though, I the crocs fit a certain need -- cheap watershoes, for infrequent use, or for children.
Tarksover 15 years ago
I wondeer if this helped their downfall.<p><a href="http://www.thebestpageintheuniverse.net/c.cgi?u=fashion" rel="nofollow">http://www.thebestpageintheuniverse.net/c.cgi?u=fashion</a>
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hopover 15 years ago
Yeah, their stock was trading around a P/E of 60 for a while. Its the first and only time I bought a put on a stock. Complete irrational exuberance.
tptacekover 15 years ago
If they hadn't produced to sustain and satisfy demand, they might have made less money, if the trend was destined to falter anyways.
davidwover 15 years ago
Question for debate: is twitter a fad or an icon?
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maukdaddyover 15 years ago
Oh come on. Everyone and their mother saw this one coming. Anyone who bought shares of Crocs was only playing a game of timing.
beefmanover 15 years ago
Funny, I doubled my money on the stock in the last 6 months... I think they're doing great!<p>Yes it was a fad, and yes they didn't stick to fundamentals with their product line, but there are enough fat people, diabetics, and children in the world to sustain the company for the long haul.
eric_tover 15 years ago
All the knock-offs at one fifth of the price probably helped too...
mmphosisover 15 years ago
<a href="http://news.ycombinator.com/item?id=900866" rel="nofollow">http://news.ycombinator.com/item?id=900866</a>