The 'Ugly but Hip' Craze: Chinese Gen Z Falls for These Holey Shoes [The World is Z Gold]

Despite Economic Downturn, Crocs Sees Growth in China
Sales Surge Over 30%, Bucking North American Decline
Targeting Generation Z by Riding the "Emotional Consumption" Trend

Editor's NoteThe Millennials & Gen Z generation (those born from the late 1990s to the early 2010s) is recognized for leading cultural and trend shifts in a rapidly changing era, setting new standards across society. In [The World is Z Gold], we spotlight the lives and values of Millennials & Gen Z around the globe, exploring how they are transforming society.

Once called "ugly shoes," the American footwear brand Crocs has recently emerged as a symbol of trendy fashion among Millennials & Gen Z in China. In contrast to the declining sales in major markets such as the United States and Canada, Crocs is gaining even more popularity in China, despite the country's economic slowdown.

Crocs Turns ‘Ugly’ Into a Tool for Self-Expression

Crocs Official Instagram

Recently, Bloomberg published a column stating, "Brands that succeed in uncertain economies are not just selling products, but selling emotions," adding, "Crocs has become an example of turning 'ugliness' into self-expression by combining localization strategies with the trend of emotional consumption." The column continued, "While most Western brands are struggling in the Chinese market, Crocs has left a new lesson as a brand that is 'ugly but authentically resonates' with consumers."

This assessment is backed by a clear shift in performance. As of the second quarter of this year, Crocs' sales in China increased by over 30%, while sales in North America dropped by 6.5%. Andrew Rees, CEO of Crocs, said during the earnings announcement in August, "Consumers are no longer shopping actively or visiting stores," adding, "In particular, low-income groups are most sensitive to price increases and are significantly discouraged by economic uncertainty. Some are not even going out at all." In other words, the economic downturn and rising living costs in the United States are driving Crocs' core mid- to low-priced customer base away from stores.

In contrast, Crocs' popularity in China continues to soar. On Xiaohongshu, known as the Chinese version of Instagram, it has become trendy to decorate Crocs with Jibbitz charms shaped like cartoon characters or food and share the results online. Jibbitz charms are decorative items that fit into the holes on the top of Crocs shoes, serving as a way for consumers to express their personal tastes and individuality.

On this trend, Allison Malmsten, Director at Chinese market research firm Daxue Consulting, said, "Chinese consumers love things that are unconventional, tacky, or quirky." Thanks to this consumer mindset, Crocs' once-mocked "ugly" design has risen as a symbol of alternative sensibility. For Millennials & Gen Z, who value their own individuality, Crocs is seen as a symbol of freedom and self-expression, as well as a playful rebellion against established norms.

Crocs’ Strategy to Tap Into Emotional Consumption Trend Pays Off

Crocs Official Instagram

Several factors have contributed to Crocs' exceptional popularity in China, including the economic climate, consumer sentiment, and a thorough localization strategy. As the real estate market slumps and economic uncertainty grows, Chinese consumers have come to prefer "emotional consumption"-seeking immediate joy without major spending. The greater the economic anxiety, the more popular products become that offer small, light-hearted satisfaction.

Crocs targeted this consumer psychology by offering Jibbitz charms, allowing customers to have fun and feel satisfied without spending a lot. As a result, Crocs has emerged as a foreign brand benefiting from the emotional consumption trend. Given the prolonged US-China tensions and the prevailing preference for domestic brands among Chinese consumers, Crocs' success is seen as a remarkable phenomenon.

Additionally, Crocs' thorough localization strategy has fueled its growth. In 2020, Crocs appointed Chinese actress Yang Mi as its global ambassador, focusing on attracting young female consumers, and actively incorporated Chinese humor and sentiment into its advertisements and campaigns. In particular, localizing the global slogan "Come As You Are" into the Chinese version "天生自在" has been cited as a key strategy in tailoring the brand message to resonate with Chinese consumers. "天生自在," which means innate comfort and natural authenticity, aligns with the values of the younger generation who prioritize a free and individualistic lifestyle.