Crocs Hit Record Highs for Quarterly Revenue Due to DTC and Wholesale
Daniel Johnson — July 27, 2021 — Business
References: crocs & retaildive
Crocs hit new highs for quarterly revenue for three straight quarters, due in part to its new digital strategy. The shoe brand increased revenue by 93% year over year to a high of $640.8 million.
Crocs focus on digital strategy caused digital sales to increase by 25.4%, making up 36% of total revenue for the company. Direct-to-consumer sales also increased by 78.6%, while wholesale increased by 112.1%. The company's DTC strategy focuses on promoting products through influencers, celebrities and collaborators. During an earnings presentation, the company spoke about its collaborations with celebrities specifically.
Crocs also announced its goal of transitioning the business to be net-zero carbon emissions by 2030, which includes plans for the company's ingredients, packaging, and afterlife for Crocs products.
Image Credit: Shutterstock
Crocs focus on digital strategy caused digital sales to increase by 25.4%, making up 36% of total revenue for the company. Direct-to-consumer sales also increased by 78.6%, while wholesale increased by 112.1%. The company's DTC strategy focuses on promoting products through influencers, celebrities and collaborators. During an earnings presentation, the company spoke about its collaborations with celebrities specifically.
Crocs also announced its goal of transitioning the business to be net-zero carbon emissions by 2030, which includes plans for the company's ingredients, packaging, and afterlife for Crocs products.
Image Credit: Shutterstock
Trend Themes
1. Dtc-driven Growth - Companies can achieve record highs for revenue through increased sales, improved customer relationships, and more precise marketing strategies by prioritizing a DTC approach.
2. Influencer Marketing - Collaborations and endorsements with popular influencers and celebrities can be a highly effective and cost-efficient advertising tactic.
3. Sustainability Goals - Striving towards sustainability and social responsibility can help companies to build consumer trust and loyalty, and attract environmentally conscious customers.
Industry Implications
1. Footwear - The footwear industry can benefit from increased digital sales and DTC marketing to reach consumers directly and build brand loyalty.
2. Fashion - The fashion industry can leverage influencer marketing techniques to increase brand awareness and drive sales, particularly in the digital space.
3. Retail - The retail industry can take steps towards sustainable practices to improve customer perception and create a competitive edge in the market.
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