Crocs will cut Chinese production for US market, as ironic ‘ugly’ shoes make comeback
Crocs have become trendy in the past year with millennials as ironic ‘ugly’ fashion
Bengaluru — Crocs will aim to cut the volume of its shoes and accessories produced in China for the US market by more than two-thirds over the next year, as it guards against the effects of US President Donald Trump’s trade war with Beijing.
The casual-footwear maker's rubber designs have made it a hugely popular choice over the last decade among older Americans looking for functional footwear for gardening or the beach, and have also become trendy in the past year with millennials as ironic "ugly" fashion.
In a media release ahead of an industry conference on Tuesday, the company said it would produce less than 10% of products for the US market in China by 2020, compared to about 30% currently.
It also said it will only have to bear costs of $5m over the next year, assuming a 25% tariff takes effect on August 1.
"Our current sourcing mix reflects our need to balance ramping up incremental supply to meet the growing demand for our product and continuing our multiyear effort to reduce our sourcing from China," the company said on Tuesday.
Crocs said it is also evaluating other plans to soften the impact of potential tariffs.
In May, footwear companies including Crocs, Nike and Under Armour urged Trump to remove footwear from a proposed list of additional tariffs that would affect $300bn worth of Chinese goods.
The company added on Tuesday that due to those efforts, Crocs did not anticipate that the potential tariffs would have a "material adverse impact" on its business.