Four to five years ago, Crocs was struggling in China. Despite its popularity in the U.S., the American shoe company had failed to connect with Chinese consumers. Missteps related to distribution left the brand floundering. But today, Crocs is thriving in China while many U.S. brands are losing ground. This article follows up on the company’s earlier expansion efforts and explores how Crocs successfully turned things around in one of the world’s most competitive consumer markets.

Early Missteps

Crocs entered China during its early 2000s growth boom but failed to adapt its approach to the local market. The company pushed product lines that didn’t appeal to Chinese consumers, such as loafers instead of its iconic clogs. It also relied heavily on local distributors, which led to poor inventory management and steep discounting that hurt the brand’s image.

These issues weren’t limited to China. At its peak in 2008, Crocs had over 5,000 different product styles (SKUs) and expanded into too many markets too quickly. When the 2008 financial crisis hit, the brand was left with excess inventory and financial losses. Recognizing the need for change, Crocs pulled back. It streamlined its global operations, reduced its product offerings, and identified five core markets to focus on, including China. But rebuilding its presence in China would take time, and more importantly, a new strategy.

Resonating with Chinese Consumers

Crocs started paying closer attention to what Chinese consumers actually want. The company realized that young, urban Chinese consumers, especially women, were more interested in bold, fashion-forward styles than the basic clogs popular in the U.S. These consumers, labeled “explorers” by Crocs CEO Andrew Rees, value creative expression and comfort. In response, the company shifted its focus to stylish platform clogs, bright colors, and customizable features like Jibbitz charms.

Crocs now develops marketing campaigns specifically for the Chinese market, often from its offices in Shanghai. Recent campaigns have featured pop stars like Tan Jianci (a Chinese actor, singer, and dancer) in pink platform Crocs flying through the sky on a pink whale. The Chinese slogan, translated as “Born to Be Free,” taps into a desire among Gen Z consumers for individuality and escape from societal pressure.

Crocs has learned that success in China requires more than just translating ads. It involves adapting the entire product and branding strategy to fit local tastes. For example, Crocs launched a collaboration with Chinese designer Feng Chen Wang, resulting in futuristic, knee-high Crocs boots that appeared at Paris Fashion Week. They have also worked with PopMart, a trendy Chinese retail brand and maker of the viral Crybaby dolls featuring themed Jibbitz that resonated with pop culture fans.

These strategies work because they celebrate local style and values. Crocs doesn’t rely on its American identity. In fact, some Chinese consumers don’t even realize it’s a U.S. brand, which may work to its advantage given geopolitical tensions.

Influencers and Social Media

Crocs' revival in China has been fueled by clever use of social media and celebrity partnerships. Collaborations with popular Chinese figures, such as actress Yang Mi, singer Bai Lu, and fashion designer Simone Rocha, have made the brand trendy among young shoppers.

Influencers and everyday users post photos of their Crocs, personalized with unique combinations of Jibbitz, on platforms like RED (a Chinese social app similar to Instagram). The hashtag “dongmen,” Chinese slang for Crocs fans, has become so widespread that Crocs executives now mention it on earnings calls. These campaigns have translated into results: Crocs’ sales in China grew more than 30 percent in a recent quarter, even as North American sales declined by over 6 percent.

China vs. the United States

While Crocs is gaining traction in China, the brand is facing headwinds in the United States.

U.S. consumer interest is shifting toward athletic sneakers. Shoppers are also more cautious due to inflation and concerns about potential tariffs on imports from China and Mexico. Price sensitive consumers are purchasing (and even window shopping) less. Crocs’ U.S. sales dropped by 6.5 percent between April and June. Meanwhile, the company took a major stock hit, losing nearly 30 percent in value in a single day. This contrast highlights the importance of regional strategies.

Looking Ahead

Crocs is investing heavily in China, not just in marketing but in operations too. The company now operates around 400 stores in China and continues to expand in major cities. Many of these stores are directly operated, allowing Crocs to control inventory, pricing, and brand experience more effectively than when it relied on third-party distributors.

However, challenges remain. Trade tensions between the U.S. and China have led to new tariffs on Chinese-made goods. Starting in 2025, Crocs expects a 10 percent tariff on Chinese imports to the U.S., potentially raising costs. While the company says it’s not planning major price increases for now, it anticipates an $11 million hit to profits due to tariffs.

There’s also the risk of overreliance on trends. While Gen Z enthusiasm for Crocs is strong today, fashion tastes can change quickly. The brand will need to keep evolving its products and messaging to stay relevant.

Crocs’ turnaround in China is a valuable case study in global business strategy. The company went from being a poor market fit to building one of the most effective localized branding efforts among Western companies in China by prioritizing local preferences, embracing social media culture, and investing in brand-building.

In the Classroom

This article, and the Wall Street Journal video about Crocs comeback can be used to discuss global business (Chapter 3: Business in a Borderless World).

Discussion Questions

  1. Describe some of the mistakes Crocs made during its first attempt to enter China.
  2. Why do you think Crocs has been more successful in China recently than in the United States?
  3. Do you believe Crocs can maintain its popularity in China over the next five years? Why or why not?

This article was developed with the support of Kelsey Reddick for and under the direction of O.C. Ferrell, Linda Ferrell, and Geoff Hirt.