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.