Crocs India terminates franchise deal
US shoemaker Crocs has cancelled its exclusive franchising agreement in India with Chogori Retail.
The Colorado-based company, renowned for its unsightly but comfortable shoes, says it will now partner with several retail companies and will ramp up its store roll-out program.
Crocs debuted in India in 2007 after entering into an exclusive joint venture deal with Chogori retail. Later the contract was converted into a franchise agreement.
But the venture has been far from successful to date. After eight years the brand has just 30 stores in India, after closing about 12 during the last eight months.
Crocs says by opening the door to other partners in the fast growing market it can open about 60 new stores over the next three years. The company also has a successful eCommerce operation which already accounts for 10 per cent of its India sales.
“We have planned out a strategy of having few but strong franchise and shedding some of the partners that don’t, can’t or won’t want to grow with us whatever the reason might be,” said Nissan Joseph, Crocs India GM.
The last of the Chogori JV stores would close by June.
“Some will close and reopen, some will reopen in different locations inside the mall and some will reopen through new franchise partners,” he said.
Chogori, meanwhile, has other priorities. It is the India licensee for Hi-Tec, amongst other brands, and has recently announced a partnership with US adventure wear brand Columbia Sportswear to open 25 stores.