croxs, a U.S. footwear brand known for its colorful clogs, will come "close" to reaching its goal of Asia becoming its largest market by the end of 2013, despite weak sales in Japan and problems with counterfeit goods in China, the company's top executive said.
"I thought 2013 would be the year" the company's Asia sales would surpass other regions, John McCarvel, chief executive of Crocs, said Thursday. "But it's going to be close."
Last year, Asia accounted for 41% of Crocs' $1.1 billion in total sales while the Americas region—which includes the U.S. and Canada—accounted for 44%.
Footwear maker Crocs counts China one of its biggest markets, but its sales are threatened by lookalike products from many Chinese companies. Crocs CEO John McCarvel talks to Kathy Chu about why the company aggressively fights counterfeiting.
In Japan, the Colorado-based company has battled a weak yen that has crimped consumers' purchasing power. Mr. McCarvel says he has yet to see consumers pulling back on spending elsewhere in Asia,
Overall, retailers in China have expanded too quickly, meaning that "a lot of brands look and feel indistinguishable," said Torsten Stocker, a Hong Kong-based partner at Monitor Deloitte, a management consulting firm. "That's the case in apparel, sportswear and footwear."
Mr. McCarvel said he believes Crocs has ample room to grow in China because of the country's swelling middle class and their demand for comfortable, long-lasting footwear. The company's main challenge, he says, is to have enough styles to cater to the finicky Asian consumer, who is more likely than in the West to window shop but not buy.
Algo: It is not clear to me what purpose of some of the posts to this board are.