Gadgets News

Crocs Thrive Despite Coronavirus Supply Chain Challenges

Image for the article

Photo: Keith Gillon / Staff (Getty Images)

Imagine for a moment, if you will, all the ailments plaguing our society: destructive global pandemic; widespread and accelerating ecological collapse; looming threat of the Swedish house mafia reunion

Now listen: We literally never run out of Crocs. Does this do something for you? No?

During call analysts To discuss astronomical sales figures for another quarter on Thursday, Crocs CEO Andrew Rees said the ugly clogs company owes much of its recent success to the fact that Crocs are largely immune to the global supply chain challenges that plague tech. industry and other companies during the Covid-19 pandemic.

In July last year, the increase in incidence, which amounted to the deadliest wave of the virus, Vietnam faced up to this point – caused massive production stops in the two largest cities of the country, Hanoi and Ho Chi Minh City.

Fresh wave blocking protocols at the initiative of the country’s leadership led to a record quarterly fall gross domestic product was so high that panicked companies were forced to choose between creating dystopian Covid-19 bubbles and on-site housing and feeding workers and take on lost profits. But folks, that’s not the point – the story is that Crocs, one of the many companies outsourcing most of their production to Vietnam, has a simple and elegant three-piece design that makes it easy to relocate production to the field. like China, Bosnia and Herzegovina, and Indonesia to ensure a stable production rate and bottom line for the company.

“One thing we have learned from COVID, I think it’s really important for people to understand that our shoes are really simple, so ramping up production in factories can be very, very fast, ”Rees told analysts on Thursday. Insider… “You don’t have a lot of external logistics to get started.”

The closure of factories in Vietnam has delayed production for many companies that have recently outsourced their production, including Nika and Lululemon… But not Crocs, baby. Speaking to analysts, Rees said that sales rose 73% to $ 626 million in the last quarter, up from $ 362 million in the same period last year.

Humanity may be doomed, but the blockage is still king. Long live the free market capitalism. Long live Crocs.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button