How Crocs Became the Right Fit for China’s Gen Z
Crocs is tapping into the China emotional consumption play.
Photo: CFOTO/Future Publishing/Getty Images
Crocs Inc., the perforated clogs commercialized by a trio of middle-aged American boating enthusiasts, has become the surprising shoe of choice for Chinese hipsters. Its comeback can provide valuable insights for Western firms struggling to connect with young consumers in a $7 trillion market where confidence has been dented.
China’s uneven economy — exports have remained robust but spending is feeble after a property market collapse — has created the conditions for some companies to profit from “emotional consumption.” The phenomenon is similar to the so-called lipstick index coined by cosmetics mogul Leonard Lauder to describe people buying small treats to feel better during times of insecurity.