Crocs’ shares are going crazy todayon the announcement that private equity giant Blackstone invested $US200 million in the company.
The Blackstone endorsement bodes well for Crocs — a retailer that has struggled to build a brand image outside of its clunky signature product.
Despite mass hate for the shoes Crocs is known for, the brand still has a couple of huge opportunities for growth, report Dana Mattioli and Mike Spector at The Wall Street Journal.
First, the brand isn’t just about rubber clogs. Crocs is aggressively pushing new products like ballet flats, pumps, and open-toe wedges, as Bloomberg Businessweek reported earlier this year.
Crocs is even manufacturing the shoes in Italy to give the footwear some credibility.
Executives hope the new merchandise will double sales in the next five years. Brand experts told Businessweek that with the right audience and marketing, the shoes could do well.
Crocs’ other big opportunity is in Asia, where the retailer is aggressively expanding its wholesale and retail businesses.
Asian customers also don’t have the negative assumptions about Crocs that U.S. customers do, which has led to huge success. Last year, Asia accounted for 41% of Crocs’ $US1.1 billion in total sales while the the U.S. and Canada accounted for 44%, according to the Wall Street Journal.
By next year, Asia will be the top market, WSJ reports.
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