Tunnel crocs shoes fast logic: a seven-year sales of 100 million double.
Wen / Feng Jin, "Business Review" special writer. .
A seven-year $ 140 dual! what shoes are so popular, not the adidas or Nike, but card Chi Road. Maybe you heard this name also met with doubt, if you referred to its "actress" tunnel shoes must be realized, the original is the colourful ugly shoes!.
Yes, that such a name to its unique material Croslite shoes - Ka Road Chi (Crocs). This shoe is able to sought after by everyone, apart from the tunnel for unusual design and vivid colors and a variety of colors outside, also in its use of the resin material makes the shoe more flexible, comfortable, lightweight, and can not marking and odor control gas, completely different from other plastic shoes or rubber shoes, is because there are so many advantages, through this "ugly" in the tunnel for shoes now also become fashionable. .
For seven years, tragedy and comedy.
Ka Road Chi this brand can be said that so suddenly into people's horizon, although came only seven years, but has received no less favorable than Nike and Adidas and other first-line brand. People will ask, so even a seemingly simple incredible shoes is how to get today's success? . .
The legend was born.
The legend began in late 2002, Hanson and his partner in Florida's Fort Lauderdale boat show selling of their new products, people packed their booths, all of these colorful and full of holes hole shoes are curious. Hanson hard to yell, it was said, "Man, these things too ugly," but Hansen answered, "I only hope that you try to put on," someone could not stop the curious will be extended into the foot, "Cool! . " .
Hansen and his companions here three days to sell more than 1000 pairs of shoes, they know a miracle started was born.
Of course Hansen would like to thank the most is friends Scott ? Seamans, he discovered the wonders of Chi Ka Road. In 2002, he saw a strange waterproof shoes for the spa, the manufacturer is Finproject N. . A. ., A Canadian plastics company. The shoes look very strange shape, but is it really attracted Seamans material, a came to be known as Croslite resin, this material, waterproof, lightweight, and compared with the plastic and rubber, it can resist bacteria and fungi. .
More interesting is that, by controlling the temperature softening resins can shape the contours of the foot, providing extraordinary comfort to reduce muscle fatigue and across the upper and upper holes you can keep the permeability and drainage. Seamans in heels with a flexible shoe, this would allow people to wear when more convenient, like slippers. When he went to the Caribbean, on vacation, he took the shoe show friends Hansen, and another friend George Boyd Decker-sandwich chain Quiznos associate store manager. So the three big man that weekend started card road-journey.
Hanson had just lucky? Maybe, fashion is such nonsense. .
To lasting from outbreaks.
But as a company, well aware of the trend of the Chi Ka Road, as the name is a volatile and transient, but they need to quickly fashion into the more lasting wealth. To ensure stability, Hansen and partners bought the factory for the production tunnel for shoes, and identified the major retailers. .
In 2003, Hansen to call friend Ron ? Snyder, former head of global Flextronics. Snyder's suggestion is: "the ideal to broad, it is necessary to establish a long-term career, you'll have to purchase Road opposite other vendor is first N Finproject. .A., because the most important thing is to get the resin patent and production technology, this card can only be in response to the road beneath the unavoidable large numbers of counterfeit goods. ”。.
Shortage of cash and wind refused to vote did not weaken their confidence in Hansen, who was raised from friends, 520 million dollars to start preparations for a big fight. .
In order to enable the enterprise continued to grow and develop, proceed, galloping route a series of acquisitions to horizontal integration approach in support of its development strategy. Card road-action is the first time in June 2004, the acquisition of a Canadian manufacturer Finproject N... .A, path has been before the card from the cruise where orders to sell Finproject, now, in turn, it deals in chicken eggs. Finproject N... .A in after the acquisition has been renamed to Foam designs and makes card Chi won the Croslite road trips.
October 2006, Ka Road Chi has acquired the Fury, and began production of protective gear on Croslite. Also in this month, Ka Road Chi has acquired EXO companies, this is mainly designed for the Italian shoe company of ethylene - vinyl acetate copolymer (EVA) products. .
The card of the most successful road opposite to the acquisition in December 2006 in the Jibbitz, the company specializes in color management technology for Crocs footwear accessories products production. In January 2007, the card also acquired the road beneath the Ocean Minded, this company specialized production suitable for Beach, adventure and Sport Sandals, and the materials used are of high quality leather and EVA, this makes the card road cruise starting at a different target market their own products, the company's sales.
With the acquisition Chi Ka Road is its rapid pace of expansion of the scale, this is located in a small Colorado company's revenues began to rise exponentially, the one million U.S. dollars from 2003 to 2006 3. .55 Billion dollars and then to 8 in 2007. .47 Billion. Whether the trend now is to pursue young or old shopping bag and are Kahu Road Chi customers. .
In February 2006, the card was a public road in eager anticipation of initial public offering of shares, raising $ 2. .39 and achieved 10. market value of us $ .9, nevertheless footwear company financing. The following year, road-sold 30 million pairs of shoes, and after the listing of a few years time, the average annual net income increased by 150 percent, and the good times continue until a terrible financial crisis before the arrival.
Over the price of success. .
Card road-stock once after the listing has gone up from $ 13 431% in October 2007, the highest point reached 69 USD history, but with the United States economic hardship, since then the stock price dropped 95% of the market value of the budget by $ 55 to $ 2. .66.
As Ka Road Chi will raise most of the funds are used for the expanded reproduction, when the market becomes saturated, and the U.S. economy began to decline, the Kahu Road Chi found that they borrowed too much money, but the decline in demand growth as quickly as . According to Caughey Road Chi earnings in the second quarter of this year, showing a net loss of 30.3 million U.S. dollars, its second-quarter sales fell 11%, or even news that Ka Road Chi verge of bankruptcy, and may be Bill Gates's Fund ? acquisition. .
However, a careful analysis of the card road-fiscal report, you can find bankruptcy says exaggerated, present card, galloping route has already started operating from the 2008 out of the shadows, the most difficult times are past, regardless of income or profits are up. The Asian market in road-the proportion of overall revenues are increasing in the second quarter of this year, despite the deep crisis in the Americas and European markets, sales fell by 19%, respectively, and 42% of its sales in the Asian market has dramatically increased by 31%.
Chi Ka Road can be said now encountered some difficulties, this is undoubtedly the world economic environment, but we can not thus be denied This single bizarre but swept the world in just seven years of product success. Chi Ka Road now for performance in the Chinese market, the biggest challenge is the threat of counterfeit goods, in fact, but this is all well-known shoe company in China, a common experience. Whether Nike, Adidas, Puma or Reebok, in the course of the past decade China has always been the impact of counterfeit goods, Adidas reported an annual loss of nearly 300 million yuan.But for those able to continuous innovation and flexibility to respond to market changes, the counterfeit goods does not constitute a fatal threat. But on the other hand, large quantities of counterfeit goods and also illustrates the success of the road opposite the card and the popular, because only by market so you can enjoy an international brand of "phishing". So, instead of on the road, opposite the plight of the moment, it is better to be cynical about exploring the experience of its growth and success.
Sell the shoes than the supply chain. .
The footwear industry to flourish thanks to the constant innovation and rapid fashion design, in order to cater for every season of the rhythm, the card has taken a flexible approach-supply chain management and lean manufacturing model combining.
Ka Road Chi through a series of unique configurations, the elements of fashion into a new shoe each, as distinct from its U.S. and European rivals, thus changing the past, people on the footwear manufacturer's outdated image, and then change the traditional rules of market segmentation, creating less of a competitive new market. Chi Ka Road past the appearance of breaking the shoe simple "value / cost" balance model, great variety of styles, quick response to market and broad customer base, making difficult to study and imitate the other competitors, it can be said Card Goodrich is the shoe in the field of Zara. .
Flexible order.
Traditionally, shoe retailers, the general order supplier production in a few months ago, has been issued, even if the 9 months also normal delivery time. Clearly, in such an environment can not produce any trend-selling goods, even if access to good production out of the sales that are "blind cat hit the dead rat." The tide of popular only in the season, that is three to four months, then the order to seize the trend of trends, it must be completed during this time from the next one, the entire process of production to are the distribution, each link no more than a month, or less. .
Because there is no way to accurately predict the market, the traditional approach is to predict based on as much as possible in the production of goods before the sales season, and then add 1/2 to 2/3 of the first delivery of the goods in place, and then at the scheduled time adjust inventory. But in reality the sudden demand changes tend to lead to a shortage of supply chain.
为了 should ensure that adequate stock market, awareness will improve the product 生产 number, which makes sales 数据 distortion of the firm can not identify the real from the market demand is likely to lead to further commodity shortages. .
Ideally, in any market, an organization that would like to be able to meet any customer requirements. However, the reality of the problem is that most of the time footwear manufacturer is based on orders and replenishment requirements to production, and the order of development from a few months ago and replenishment is a few months of feedback, key product listing the hot phase of the data and does not produce any positive role.
The Ka Road Chi wants is to buy all the time to understand what customers want to buy what styles, and styles, and such a cycle is not in months but in days, or even in hours. So Ka Road Chi has taken the practice of vertical integration of supply chain vertical integration, industrialization, by controlling its internal production, the company can be flexible in the variety and quantity of response, control the frequency of production of new models. .
Sustainable higher stock turnover created card road was a retail store scarce environment, which also increases the customer visit frequencies and consumption. This makes the card road cruise sales season every two weeks on the launch of a new product, and the scarcity of the product allows companies to full price sold more style and helps keep the card in more than the road opposite the gross profit margin.
Ka Road Chi numerous sales outlets, the majority of customers at an affordable price, innovative product features and materials, and Caughey Road Chi dynamic sales and use of communication channels, so Ka Road Chi can quickly break through from the competitors. Chi Ka Road in the spring even began to release products during the fall of the small number of models in the sales period, if the response is well designed, Ka Road Chi can quickly fill the gap, manufacture and marketing of new products. Compared to the traditional footwear manufacturers in waiting for the sale of inventory data feedback, Ka Road Chi has been a big step ahead, early to lead the market trend.Currently hundreds of already owned road-style, and is no longer limited to summer wearing sandals, by increasing the leather and fluff element card road cruise is also available in autumn and winter fashions, which effectively prevents revenue due to seasonal changes and fluctuations of the situation.
Ka Road Chi of this has been well received by retailers welcomed as it provided for the retailers, convenience, no need to place orders in the spring Tai Liang, the flexibility to effectively manage inventory sales. Retailers typically sell in the spring, the first 6 months of orders, and Caughey Road Chi can supply in a matter of weeks, only 24 pairs at least, this is undoubtedly popular with small retailers welcome. This "get rich quick" approach also avoids the backlog of sales after the discount, because Ka Road Chi shoes are always original sale, which is unparalleled in any other competitors.This win-win mode enables retailers and cards you can avoid the road beneath the large backlog of inventory, improve efficiency in the use of funds.
Rapid response system. .
The reason I like better than competitors react faster, because the card information-know the road is and how to obtain first-hand information of consumers, benefit from card road-QR (quick response) system.
Simply use Gezhong technical, technological and Huo Dong wanted to run Xianran Hui Zheng Ge fill the supply chain, all of these links Du Yao Qiu close contact, including electronic data interchange (EDI), bar codes, electronic point of sale systems 和 laser scanner including all electronic data is Kahu Road Chi into the information system. The basic logic behind this is as close as possible to capture the true demand, as much as possible close to the end consumer. This action strategy for the rapid reaction provides the flexibility and responsiveness. .
In order to get the reaction time of advantages, not only to develop rapid market feedback system, you also need to production and logistics systems. Many companies are now in wide use QR systems, such as Procter and Gamble from Wal-Mart checkout counter gets sales data, the use of this information, the Procter and gamble for replenishment to the detailed schedule of production planning and logistics to Wal-Mart. The result is that Wal-Mart reduces inventory and avoid stock-outs, and Procter & gamble was a win-win situation. While investment in information systems is quite large, Danshi return Yeshijutai of, QR Xitongshide Ka Road Chi Ke Yi Sheng Chan to Xuqiu drive to make to ensure the maximum product variety and delivery Shi Jian, the expenditures, inventory costs Jiang Hu to a minimum. .
P。.S。.
And as I know, many enterprises is to win, the logistics system. Learning as Haier, zero inventory is the most cost-effective way. Business leaders who have a different legend, but you are an insist on strength. Crocs may be the image of the future will consider changing it. Ha ha ha. .
Growing hope, or you can save sets capital venture.
