Crocs, the ubiquitous and insanely expensive clunky shoes continuous to experience a decline in sales. In the year 2008, revenues were down by 15%. That's equivalent to losses amounting to $185.1 million. The excess in worldwide inventory is felt locally. Remember the 80% sale on all Crocs merchandise at SM Megamall?
Crocs has also slashed its workforce by 3,700 and closed down factories in Canada and Brazil. Another wave of losses is expected this first quarter of 2009.
In times of economic uncertainty, most people are tightening their belts to survive. One way to stay afloat is to cut down on buying unnecessary and pricey stuff. Starbucks is of them and same goes with Crocs, Havaianas, designer items and other gadgets that you can live without.
Previous Posts
Recent Comments
Blog Archive
Powered by Blogger © 2008 Light Olive Green | theme design: ooruc
5 comments:
Simple living ought to be the rule in good times and in bad. The people behind Crocs and Starbucks, to name a few, made the mistake of assuming that the good economic times we enjoyed will last indefinitely. The current global meltdown certainly gave the managements of both companies a very rude, yet much needed, awakening. It ought to force them to question some of their views and assumptions about the economy and the state of people's finances. They ought to reassess whether they would like to continue sticking to products that cater to an upscale clientele. If so, they'll be in for a rough time given consumers' newly rediscovered thrift.
I have a feeling, all these stuffs that banks on its name to justify its price will lost a lot of market. Even these stores that sells outrageously priced materials that are made in China are closing down. Remember Mark & Spencers?
Panaderos,
The latest news I heard is that Starbucks is now selling breakfast meals ala-McDonalds. I'm a fan of gourmet coffee but not Starbucks priced gourmet coffee. I indulge once in a while especially when my boss gives out gift certificates. But making Starbucks a daily habit? No way.
Blogusvox,
People came to realize the real value of a commodity during tough times e.g. flip flops worth 1k is downright crazy.
When you grew up with less money, tightening your belt during hard times is second nature. You don't think about it. You just do it.
BTW, Crocs are really ugly. I'm sorry if you're wearing one. I think bakya is prettier.
Mel
Post a Comment