This post is written as part of AOL Money & Finance's Best & Worst 2006. Vote for Crocs as the up and comer of 2006 or check out the other nominees in the category.
Beauty is in the eye of the beholder. You may not have thought a brightly colored plastic-looking clog thing would be something you'd clamor to buy -- but then that was before everybody on the planet had a pair.
There's probably not a kid under five who can't be seen trotting along in a brightly colored pair of these comfy shoes ... trailed closely by a mom or dad shod in their own.
Crocs, Inc. (NASDAQ: CROX) went from $1 million in revenue in 2003 to a projected $322 million this year. Its February IPO gave the footwear maker a market cap of $1 billion.
But it took more than a parenting trend to put Crocs on the big boy map. What started out as a lark by three middle-aged business guys turned almost overnight into another American success story thanks to a savvy business strategy. A little celebrity favor didn't hurt, either.
In 2003 the company was doing $1 million in business -- not bad considering sales were largely driven through word of mouth. Then the founders hired an old college chum -- retired Flextronics executive Ron Snyder -- to help them grow to the next level. In 2004 Snyder bought the Canadian business that manufactured Crocs and owned the rights to the resin that gave the shoes their particular comfort and odor resistance -- called Croslite. Now the company owned the means of production ... and suddenly it was a whole different ball game.
Snyder next set his sights on the global market. He set up plants in China, Mexico, Italy, and Romania. International sales drove the company to record revenues and now accounts for some 30% of its business. For example, one in six Israelis owns a pair. The company says it's on board to sell some 20 million pairs of shoes this year.
Croc's is marketing on its trendy success -- it's opening a giant store in New York's uber-hip SoHo district, and is branching out into corporate branding, making special Crocs for companies like Google Inc. (NASDAQ: GOOG), The Walt Disney Company (NYSE:DIS), and the L.A. Lakers.
The company's in fashion now. But can a shoe company stay hot? We'll see if Crocs's business model can keep its teeth sharp and keep it swimming with the big boys.











Reader Comments (Page 1 of 2)
12-15-2006 @ 8:13AM
Cat said...
My husband gave me some Crocs RX for my birthday this year, and it's the best thing the man has ever given me. I suffer from diabetic neuropothy and planter faciitis, so there were days when I couldn't even get out of bed and walk 15 feet to get to the kitchen. I'm happy to say that because of these shoes my flare ups are much further apart. Crocs has two thumbs up in this household.
12-15-2006 @ 9:44AM
J.J. Heckman said...
I work at the hospital and I noticed that everyone was wearing crocs. So I bought a pair of crocs the next day. I liked my shoes so much because my feet felt better past a long 12 hour shift. So I bought $100,000 worth of crox stock and made a quick $60,000 in 2 months.
J.J. Heckman
12-15-2006 @ 9:45AM
TRACY said...
Crocs...what a wonderful thing. I am a nurse, and about a year or so ago, I showed up to work in these "ridiculous looking shoes". Everyone I work with made fun of them. As comfortable as they were, I felt embarrassed, and put the shoes in my locker. They stayed there for a couple of months. Then all of a sudden, other people started showing up to work wearing them. I thought, "Hey, I'm gonna get mine back out." Now, most of the nurses I work with wear them. I have 2 pair now for work. My husband now has a pair that he even wears to church! My 13 year old son wears his all the time. And I have 2 small children who wear theirs a lot too. I just love them. I hope that Crocs will be around for a long, long time!!
12-15-2006 @ 10:07AM
J.J. Heckman said...
I have been wearing crocs for over a year and these shoes are the most comfortable shoes that I have ever owned. I work at the hospital and most of the employees are wearing crocs. So, I invested $100,000 into crox stock and made a quick $60,000 in 2 months.
JJ Heckman
12-15-2006 @ 12:49PM
Mary said...
Crocs have been a lifesaver for this family...we LOVE them...they are unbelievably comfortable and reasonably priced...I, for one, work standing on my feet, and for the first time ever, I can say that I can wear this shoe and my feet never hurt after work...never.
12-15-2006 @ 10:42AM
Mary Catherine Haines said...
I thought who would want those silly looking shoes.Well I got a pair for my birthday in October and have bearly had them off. I have lupus and diabetes and my legs swell. I have less pain since wearing them. I also love the the little decorations. Our Relay for Life team will be wearing purple ones with the word HOPE on them. My grand daughter's teacher has scrambled words on her's
12-15-2006 @ 10:46AM
BAKuwano said...
They are a no-brainer for anyone who is on their feet all day! My daughter told me about them and I was on-line in 5 minutes to order my first pair. Since then, I have had several friends order them and many customers who come into the store. I work in a grocery store. I have since ordered them for my son, my other daughter, my son-in-law; not to mention countless Jibbitz for the girls to make their Crocs unique!
They are the most comfortable shoes I have ever worn! Like being barefoot at the beach! LOVE THEM!!
12-15-2006 @ 10:47AM
teresa butler said...
I at first thought the crocs were ugly when they first came out, but now they are making them look more stylish. The holes are great for adding those cute little button plug things. I have a new pair that has the velcro straps and the style is tough looking. I like them alot! I hate wearing my tennis shoes now and always end up taking them off and right back on goes the crocs. The new stylish crocs ROCK!
12-15-2006 @ 10:49AM
Denise Rivera said...
I had knee replacement which sad to say didn't do me any good.With shoes or tennis shoes my leg always felt heavy and was thrown off balance.I bought a pair of Crocs after trying them on in a store.I never take them off.I can walk better,they are lighter on my feet.I have them now in all colors and just love them.My first pair I actualy wore a hole in the toe because I never took them off.My husband has now gotten some for himself.I no longer get a kiss as soon as he comes home from work.He now heads for his Crocs first.They are just great.Hope they never go off the market.
12-15-2006 @ 11:14AM
tina said...
CROCS ROCK
I have been wearing Crocs for years now....and still love them.
12-15-2006 @ 12:24PM
Claudia K. Leonard said...
I bought my first pair of Crocks Thanksgiving Weekend, 2005 in Nags Head, NC at Kitty Hawk Kites. That Black Friday sale purchase was the best investment I have ever made for my feet after two successful bunion operations. My son(21) and daughter (27) said they thought they were ugly and didn't want to been seen with me wearing them. My son said the "Preps" wore them on his college campus. Lo and behold, the next shoe purchase for my son was a pair of Navy Crocks. He works in a seafood market during the summer and on some weekends and is constantly standing on a concrete floor. Needless to say, the Crocks are also convenient when he can just hose off the fish scales and guts never missing a step at the seafood shop. HHmmmmm.....his feet feel much better too.
This year on our annual Thanksgiving trek to Nags Head, I couldn't wait to pick up another pair of Crocks on Black Friday. Sadly, they were not on sale this year. I guess the popularity has set in and there will be no more "20% Off" bargains. Oh well, I still purchased a pair of light blue ones to rotate with my navy Crocks. I think my daughter picked up a pair of pink ones for me as she told me we didn't need to go back to Kitty Hawk Kites. I was eyeing some pink ones too.
12-15-2006 @ 12:29PM
sally b hill said...
Geez what a story..... Those comments are wonderful. What a great thing you did for that company, by placing those comments. Just to help one group of people, Diabetic, but the medical industry, the Jewish people of Israel, WAIT TIL THEY HIT CHINA
wHO ARE THOSE THREE BUSINESS GUYS ANYWAY?????
12-15-2006 @ 12:39PM
Brigid13 said...
I have "nightmare" feet. You know, corns, bunions, crooked toes, the works. I love to walk and my husband and I lead a very active life. I just got my first pair of Crocs and I love them! With or without socks, they're like walking on pillows. I can take my dogs out to walk (we live on a mountain; no paved roads for us!) and not worry about slipping or falling...or about pain bringing me home before I'm ready. I plan to wear out these Crocs very quickly, so I hope they're on the market forever. I can't imagine life without Crocs!
12-15-2006 @ 9:34PM
al pambuena said...
i work at lowes. the other day i saw a hard-core tough construction worker wearing lime-colored crocs..that sold me.
12-17-2006 @ 8:21AM
Cathy said...
I have been wearing Crocs for over 2 years now. I have -- I think - about 8 pairs. I only take them off for the office M-F. There's a terrific description in Ray Bradbury's book DANDELION WINE about how it feels to get your summer sneakers. That's how Crocs feel -- they bounce and make you feel light. And who can be too serious when your shows are bright blue, orange, red or lime green? I would hope the fashionista image does not impact Crocs becoming a mainstay -- for years and years and years.
12-17-2006 @ 8:40AM
Breeze said...
Oh. My. Gosh. I just discovered these a couple months ago; they're wonderful. I've tried Birkenstocks, Clarks, etc. and am exhausted after a day of wearing them. Not so with Crocs. Not being able to go everywhere barefoot isn't as bad if Crocs are the alternative.
12-17-2006 @ 8:40AM
SAndra Phillips said...
Living at the time in Denver , I have been a Croc wearer since they hit the market. Everyone laughed, said they would never wear plastic ugly shoes..but I converted them. I now own about 30 pair. I moved to Texas , and at the time no one here wore them much, but I see them everywhere now. Best thing to ever happen to feet.
12-17-2006 @ 9:13AM
bleu said...
My entire family has crocs, my husband even wears them with a suit when going to court, my almost 90 year old father in law wears only crocs. Comfort over beauty, that's all I can say while slipping into my new ones, the grey with the lavender leather on top and ties. Nice..............!
12-17-2006 @ 9:38AM
JUDSON PATTEN said...
I love them. I have 3 pairs - blue, black, and tan. When I wanted the blue pair, the web site for "Crocks" said they had none. So - I went immediately to EBAY and found many pairs of blue Crocks and got mine for a very good price.
12-17-2006 @ 11:15AM
susan said...
Comfortable or not...they are hideous and I would never wear them. Geez people....have a little class!