00:00One thing that worries me, though, is their heavy reliance on wholesale channels.
00:03Right now, 65% of their revenue comes from third-party retailers,
00:08which means that they don't have much control over how their products are sold.
00:11For example, if Walmart decides to start selling a generic version of Crocs for half the price,
00:17it could seriously hurt Crocs going forward.
00:19So it'll be interesting to see how they navigate this challenge in the coming years.
00:24But putting that aside, I think there's a lot that we can learn from the story of Crocs.
00:30Most obvious is the importance of distribution channels.
00:33If Crocs only sold their shoes directly to consumers, they would have never become as big as they are today.
00:39Instead, they leveraged key partnerships to get into the hands of millions of customers.
00:44But I think the most important lesson from the story of Crocs is that it's okay to start out as
00:49a commodity.
00:50A lot of entrepreneurs get caught up with the idea of creating the next iPhone or the next Facebook.
00:55And while those are cool, most of those won't work out.
00:59At the same time, there's nothing wrong with starting out as a commodity and then gradually upgrading your product.
01:04Now we've got to razoffic for you.
01:04It's now, when I go to the ATM.
01:04So we've got to start as a garssey John's giving here a grandlaw.
01:05What we've got to do in person with this industry is for SapUs.
