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Crocs cuts back on Chinese production on products for US market

By Robyn Turk

12 Jun 2019

Crocs announced this week that it will drastically cut down the amount of shoes it produces in China, due to concerns of President Trump's proposed tariffs.

The Colorado-based footwear company currently imports about 30 percent of its products for the U.S. market from China and expects to scale that number back to under 10 percent for 2020.

“Our current sourcing mix reflects our need to balance ramping up incremental supply to meet the growing demand for our product and continuing our multi-year effort to reduce our sourcing from China,” announced a company statement ahead of an industry conference on Tuesday.

Crocs also shared that it expects to experience a 5 million dollar impact this year, assuming President Trump's tariff goes into effect on August 1, 2019. Despite this, the company does not believe that the tariffs would have a material adverse impact on its business.

"We are evaluating various mitigation initiatives which will be implemented to lessen the impact on Crocs of any tariffs ultimately put into effect," it continued.

The company explained it has a "globally diversified sourcing base," despite sourcing mainly from China and Vietnam. Last August, Crocs shut down manufacturing facilities in Mexico and Italy in a measure to cut down costs.

Photo credit: Facebook, Crocs