Newsletter | Dec. 3 2021

Newsletter | Dec. 3 2021

Crocs

It seems Crocs are the next company to push into the mobile app and Virtual Reality sphere. With lofty goals of increasing sales to $5 billion by 2026.

According to their press release, their goal is to reach 17% annual growth compounded over 5 years to reach the $5 billion mark. Their confidence stems from what they note as ”growing digital sales, gaining market share in sandals, capturing growth in Asia, and innovating product and marketing.”

The keynote for their plans is their digital sales. What Crocs defines as digital sales are from their website, third-party marketplaces, and e-tailers. Currently, as of Q3 2021, digital sales represented 37% of their total revenues. They expect this number to grow to 50% of their total revenues by 2026.

We’ll have to pay attention to how well their push into the sandals space and Asia celebrity marketing helps them meet those goals.

Uber

Uber is aiming to push for more delivery services. Currently, Uber is known for two things: ridesharing and food delivery. Their next push is to move from food delivery to retail delivery. Their new service is called Uber Direct. It’s positioned as a way for retail companies to compete in the “convenience economy” against companies like Amazon.

 
UberEats, Doordash, and Postmates have created a completely new sales channel for restaurants around the United States. Especially during the pandemic, restaurants heavily relied on food delivery as a sales channel to weather the storm.
 
Hopefully, the new push for Uber to create a delivery service for retail stores will also be a great addition for sales. However, as Uber starts moving into retail stores, business owners should listen to some cautionary tales from restaurant owners. While for some it’s been an amazing explosive new sales channels for some; for many it’s actually been the opposite.
 
Here’s the formula: Lure businesses with low fees and high traffic. Lure in consumers with convenience. As businesses begin relying on these new sales channels and customers become used to fast, easy retail shopping. Delivery apps begin charging more towards businesses and push their weight as a market maker.

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