A dispute has been sparked in the USA over the colourful plastic shoes of the Crocs brand: The ever-increasing popularity also brings imitators onto the field, against whom Crocs is taking tough action. It’s about sending a message.
These shoes divide the spirits – and now a US court has to rule on the design of the Crocs shoes. Because the company defends itself against imitators. Crocs filed a lawsuit against more than 20 retailers in the US last week for also launching plastic shoes with holes and buckle. The Washington Post reports on this.
For the Crocs brand copy dealers like Walmart , Sketchers and also the luxury brand Loeffler Randall the “iconic design” of the Crocs clogs.
“It is essential that we protect Croc’s iconic DNA and we will not accept an infringement of our rights or companies that want to profit at our expense from the investments we have put into our brand,” Daniel Hart, head of legal at Crocs, said in a statement. The companies concerned did not comment on the lawsuit against them at the request of the Washington Post.
Profit could rise by 65 percent this year
Crocs has achieved amazing growth in the Corona pandemic. The company’s revenue nearly doubled in the most recent quarter to $641 million, and profit this year could increase by as much as 65 percent — to more than $2 billion, according to the Washington Post.
This also had an impact on the share. Established Crocs investors were able to look forward to a rapid price increase in the past year. The value of the stock rose by more than 250 percent, and in the past five years Crocs has even been able to increase the value of its securities by almost 1,000 percent.
The brand benefited from many celebrities who rediscovered the plastic shoe. Already in the 2000s, clogs have experienced a trend, in recent years stars such as Ariana Grande, Post Malone, Woopie Goldberg or Ruby Rose helped the plastic shoe to new popularity. Pop singer Justin Bieber even created his own clogs design for the brand twice.
For other companies, the increasing popularity makes copies more attractive. In Germany, too, supermarket chains offer cheaper copies of Crocs shoes. Instead of 50 euros, customers can get the plastic shoes from the imitators for just over ten euros.
Lawsuit with deterrent potential
The company Crocs is therefore also taking tougher action against imitators in order to be able to maintain its market share. In addition, the company wants to withdraw from supermarkets and department store chains and sell its shoes directly, especially via the Internet or its own branches. If chains like Walmart subsequently replace the Crocs shoes with their own imitators, it would hurt the company greatly.
According to experts, the lawsuit is therefore also to be understood as a clear warning signal to the competition. Smaller manufacturers are to be deterred by the lawsuit to produce similar shoe models themselves. So that the market with the colorful plastic shoes belongs to only one: Crocs.