Crocs: Tariffs didn't deter sourcing plans from India

MUMBAI: US tariffs never impacted Crocs' sourcing plans from India, a market key to the American footwear company's supply chain diversification strategy and where it has expanded to five factories over the past three years, said EVP and brand president Anne Mehlman, adding that lower tariffs now gives the firm more room to broaden sourcing from India.

"The tariffs didn't deter our sourcing strategy. Obviously, they made it a little difficult but didn't deter it. The lower tariffs give us more flexibility. India is an important part of our manufacturing base. It is in a very strategic area," Mehlman said in an interview here on Thursday.


India, Mehlman said, is evolving rapidly, making it challenging for brands to keep up with the pace of change. Mehlman, who is on a visit to the country after 18 months, is meeting the local team on ground, going to Crocs stores to learn more about the market. "The digital landscape is rapidly shifting," Mehlman said, alluding to the rise of quick deliveries. Shoes manufactured in Crocs' factories in Tamil Nadu are shipped to the US, South Korea, Canada and parts of Europe, sources said. Mehlman did not disclose the specifics.

Widening manufacturing capabilities in India, which is also one of Crocs' top five focus international retail markets alongside Japan, China, South Korea and parts of Western Europe will allow the firm to serve local consumers faster, Mehlman said.

An influx of global brands coupled with the growth of homegrown, affordable D2C footwear labels have made India a more competitive market for companies as consumers now have more choices. Crocs, popular for its colourful clogs has a premium positioning with prices starting from Rs 2,500. For the brand, international markets are driving revenue growth with India contributing significantly to the business coming from the segment. "About 50% of our business is outside the US now. Increase in GDP, growing base of middle class consumers as well as a younger consumer base....these factors are driving the brand growth in India," Mehlman said.