Croc solid

It's hard to miss Michael Brown. The managing director of Iqdam Trading wears his brightly coloured shoes everywhere, except when he rides his motorbike.

"I don't think people look silly in them," he smiles. "I think they are great." Then again, he would say that - last year Brown sold over US$3.5m worth of Crocs products across the Middle East.

For those of you that thought the ‘plastic shoe' phenomenon was just another fad, you would be mistaken. Love them or loathe them, they make millions of dollars and sell all around the world. With their popularity increasing almost daily, Iqdam Trading, the sole distributor in the Middle East, is set to do very nicely indeed.

The first 12 months of trading of Brown's company finished at the beginning of the month and registered sales of US$3m for the Crocs shoe and US$519,000 for the ‘jibbitz' accessories (more on them later). "We got off to a reasonably slow start but I was happy not to get mass distribution straight away because I wanted the brand to prove itself," Brown explains. "Crocs have done very well out here, and sales are now convincing retailers to take the risk."

Back in the US in 2002 in the company's first year, Crocs made a gross profit of US$1000. Fast forward a few years, a couple of Disney deals later, and distribution in more than 40 countries in 2004 has seen profits increase to US$200m. In 2007, sales increased by 217% over the previous year, and when the company went public last month it had an initial public offering of US$208m.

Judging from Brown's figures, the Middle East is not far behind the craze. "I literally can't keep up with the demand," he shrugs. "We distribute in all of the Emirates as well as other countries in the Middle East. One appointment with Athlete's Foot in Kuwait last week triggered the opening of 12 new outlets - they are now our biggest customer.

"Last week, I ordered 28 containers which equates to 286,000 pairs of shoes. Having a shortage of Crocs is like having a shortage of eggs or sugar, people start to bulk buy. And it's not just a kid's brand, we sell as many adult shoes as we do children's."

But what is the appeal? Brown's enthusiasm is almost contagious: "Once you put them on, you just fall in love with them. Wearing Crocs is like walking on marshmallows. I have 25 pairs of Crocs myself but I think I am probably the only guy who wears the pink ones in Dubai."

Unusually, Brown even manages to put a positive spin on the threat posed by counterfeit Crocs. "They don't have the benefits that the original Crocs have but people who have bought the fakes often end up buying the original afterwards," he claims. "If copycat versions are being produced, it means the design is becoming more widely acceptable, which can only be a good thing."

The company's website even lists 10 good reasons as to why wearing the striking shoes is actually good for you. Apparently they are very good for diabetics as the sole of the shoe massages the foot, boosting circulation.

Combine that with its unusual design and you have an orthopedic/fashionable shoe with a cult following.

Originally designed for boating by Canadian company Foam Creations, Crocs was formed by three university friends from Boulder, Colorado in 2002. Recognizing the potential of the product, Scott Seamans, George Boedecker and Lyndon Hanson bought the license, developed the design and, as Brown says, "the rest is history. The benefits of the original boating shoe easily translate into everyday life. They are ideal for the Middle East as the holes in the top allow for ventilation and for sand and water to easily pass through."

Crocs accessories are also now big business in their own right. Crocs recently paid US$10m for the license of ‘Jibbitz' to an American housewife and her entrepreneur husband, Sheri and Rich Schmelzer after they developed the accessories which fit into the top of the shoe. A further US$10m will be given to them if expected targets are met. Jibbitz are now available in more than 500 designs. But Brown's problem is supplying them in the first place. "The real challenge for us is keeping up with demand. Last week a customer flew into Dubai to collect two suitcases full of Jibbitz. We have sold more than half a million of the accessories in 10 months - crazy when you think my first order of 700 pieces arrived in a package no bigger than a shoe box and sold out within a matter of days," he says.

"95% of Jibbitz accessories are sold to children. They fill every hole with one of them, completely losing the ventilation benefit. They fill up the shoe and then beg their parents to buy them a new pair of Crocs so they can start all over again. It's an amazing brand. Every kid loves them."