Placer.ai released another forward view of a brand reporting quarterly results, focused this week on the global comfort footwear market and Crocs, Inc. (CROX), the parent company of the Crocs and Hey Dude brands, that is set to report first-quarter results on May 7.

In its latest report and accompanying blog post, Placer.ai projects a significant growth trajectory for the global comfort footwear market, estimating it to surpass $47 billion by 2028. This promising forecast, based on data from ResearchandMarkets, indicates a substantial increase from the $26 billion market size recorded in 2022. 

Placer.ai believes the Crocs brand is in a prime position to take advantage and backs up its assertion in a new report—”Crocs’ Footwear Fairytale”— underlining “the shoe’s acceptance within pop-culture combined with demand for comfortable footwear is elevating the brand’s traffic to new levels.”

The market research firm that measures brand strength, share and growth via foot traffic in branded stores sees the Crocs rebrand from “ugly to chic” as one of retail’s most fascinating Cinderella stories and dived into the latest location analytics and demographic data to explore the consumer behavior that drives Crocs’ continued success.

Placer.ai sees a combination of designer partnerships and the entrenchment of comfort in today’s footwear landscape driving visits to the brand, and the brand’s strategy of opening new stores in outlet malls is positioning the brand in front of more of its target audience.

Partnerships and Pandemic Popularity
Placer.ai sees the long journey to become a fashionable brand rooted in key partnerships. The research firm noted that in 2017, Crocs partnered with Christopher Kane, who became the first designer to collaborate with the brand. A stampede of designer and celebrity-inspired styles reportedly followed in 2018 and 2019, including Balenciaga’s iconic ten-inch platform Croc and Post Malone’s take on the classic clog.

Placer.ai continued its report stating that during the pandemic, the Crocs brand built on its success in fashion and celebrity circles and gained a new following from comfort-first shoe shoppers stuck at home or running errands.

“Taking a wide lens on Crocs’ foot traffic since 2018 shows how a strategy of designer partnerships as well as recognition as a functional shoe drives visits to the brand,” the report noted. “In 2018 and 2019, as designer Crocs rolled out, visits to the brand climbed to new heights.”

Placer.ai said that since the wider retail reopening in 2021, Crocs’ foot traffic growth has accelerated as comfort reigns supreme in and out of the home.

Compared to a Q1 2018 baseline, Crocs saw its largest monthly visit peak in Q3 2023 (199.1 percent), the critical summer period, according to Placer.ai data. The report noted that according to its analysis, foot traffic in the most recent first quarter of 2024 was 43.7 percent above the Q1 2018 baseline, indicating that the brand’s acceptance within pop culture, combined with demand for comfortable footwear, is elevating the brand’s traffic to new levels.

Real Estate Strategy Helps ‘Democratize’ the Brand
As Crocs continues gaining traction, Placer.ai believes the brand is pursuing a real estate strategy to reposition it as an affordable shoe for the whole family.

“Although Crocs shrank its store count in the years leading up to the pandemic, the brand has begun opening new locations in outlet malls—five in 2023, with plans for 30 new stores in outlet malls in 2024,” the report states.

Placer.ai said that analyzing the Crocs brand trade areas between 2018 and 2023 suggested that this strategy has helped the brand reach its audience.

According to the STI: Popstats 2023 dataset, in 2018, there was a gap of more than $6K between the median household income (HHI) in Crocs’ potential market ($81.0K/year) and in its captured market ($74.7K/year). But by 2023, the median HHI of the brand’s potential market ($75.5K) and captured market ($75.9K) had more closely aligned; this indicates that by opening stores in outlet malls, where consumers looking for discounts are likely to shop, Crocs’ potential market more closely reflects its actual visitors and the brand can drive additional traffic from its target audience.

Happily Ever After
From humble beginnings, Crocs have become runway-famous. And, yet, Crocs’ clogs are more popular than ever with the average consumer.

How will Crocs shape the next chapter of its foam fairytale? Visit Placer.ai here to find out more.

Image courtesy Crocs x Simone Rocha