This is also destined for UGG to expand into new markets

People don’t wear snow boots in the summer, and it’s hard to see snow boots in formal occasions. Affected by the seasons and usage scenarios, UGG snow boots are often in a double-fire situation.

This is also destined for UGG to expand into new markets, expand the range of users and add product lines.

Taking the Chinese market as an example, in 2015 UGG wanted to further expand the Chinese market by accelerating the expansion of stores. At the time, UGG China stores, but only three years ago (May 2012). At the same time, they said they will expand their product lines, enter the menswear market and transform into a high-end lifestyle brand.

It seems that becoming an American lifestyle brand is good for UGG to get rid of the long-term single snow boots image, but this road is bound to go very hard. UGG also launched a series of household items, straw sandals, and added earmuffs, ready-to-wear, handbags and other categories, but the image of UGG snow boots is too popular, like the sandals are basically few people buy. Also known as the “ugly” name, the product is subject to the season, suddenly (2007) bursting red, after the decline and decline, Crocs and UGG are simply difficult brothers.

Crocs also wants to expand the product line, follow the trend, and play a variety of tricks on the hole shoes. In 2013, Crocs had styled hole shoes, but still relied on classic sales, and now the best sales list Classic Clog still ranks first.

But there are fewer consumers paying for it. For the full year ended December 31, 2016, Crocs’ total revenue was $1,036 million, based on a fixed exchange rate, down 4.7 percent year-on-year. In Crocs Americas, Asia Pacific, Europe and other markets, retail-based comparable store sales declined to varying degrees, and the decline was larger than the same period. Crocs expects to close 160 retail outlets by the end of 2018. For UGG, Crocs, or similar brands that are bursting with a single product, the development path will inevitably face the problem of the core products. The expansion of products is a process of continuous exploration, continuous failure, and continuous innovation.

This is like you have to “kill” the cash cows yourself, and then create new cash cows, the pain can not be separated, but may make you new.

UGG parent company Deckers Outdoor Corp

UGG turned in the transcripts somewhat “ugly”, and the parent company with it may have to be sold.

Due to lower-than-expected share prices in the past five years, UGG parent company Deckers Outdoor Corp. has recently been “stressed” by two radical investors.

Red Mountain Capital Partners LLC, which has a 3.3% stake, is now calling on the board to seek to sell Deckers. In Red Mountain’s view, there are buyers who take the opportunity to give management more opportunities to continue to run the independent business plan announced in February. The former is more reliable and benefits more.

Marcato Capital Management LP is also putting pressure on Deckers. In February, the investor who owns a 6% stake in Deckers asked Deckers to explore new development strategies.
Although Deckers CEO Dave Powers is still trying to convince people of the company’s potential for change, “We have made significant progress in streamlining the cost structure, optimizing the retail store network and realigning the brand,” he said in a statement on the 25th. “We still Continue to explore more opportunities for profit growth.”

But the reality is that even Deckers doesn’t have to have any receivers to sell, and the “culprit” is the once-ubiquitous sheepskin boots – UGG.
Speaking of UGG’s brand, the natural conditional reflection is snow boots.

The original fashion circle that looks slightly ugly and cumbersome is resistant. However, Deckers has a good marketing plan. They know that it is very difficult to go through the advertising route or to discuss the fashion circle. Therefore, try to take the lead with the star “top down”.

UGG became a gift of “with ulterior motives” and was sent to the stars who were frequently photographed by paparazzi. This will cause people’s curiosity: This shoe is a bit ugly, what kind of “glamour” is there for her to wear on her feet?

It is also undeniable that UGG has its advantages, such as warmth and comfort. Like Oprah, after he received the gift, he liked it. Not only did he buy a pair of gifts, but he also helped the publicity in the talk show. Gradually, the star circle spread through UGG’s “trend”, Leonardo and Cameron’s many stars joined in, and even Spielberg’s family also wore UGG to appear in public