Brand Expansion Of Light Luxury Brand UGG
The brand is cool again. It's a tough test. What UGG is doing.
As the best known Snow boots One of the brands, Deckers Outdoor, the parent company of American brand UGG Australia, announced its second quarter earnings in 2015 in October 20th. According to the financial report, the net income of UGG increased by 0.9% to $421 million 100 thousand in the three months ended September 30th, and the growth rate was 5.3% without considering the exchange rate effect.
Although the performance of UGG and its parent companies is higher than analysts' expectations, the fact that group profits fell by 3% is still in sight. For it, the bottleneck period of development is not so easy to ride through. The snow boots, which were once very popular, seem to be slowly pulling out of the trend. The performance growth is too small. The advantage lies in the fact that the domestic wholesale channels are better, which makes the negative effects of the decrease in the number of dollars brought about by the dollar stronger, rather than relying on the strength of the brand itself.
Its accurate red story is a mystery, but anyway, you know it used to be very red.
There are many versions of the popularity of UGG, but it is certain that it must not be the popularity of UGG Australia brand, but the popularity of a whole snowshoe category. UGG, which is actually originated in Australia. Wool boots The general term, meaning "Ugly Boots" (ugly boots), looks dull but also warm and lovely. The most important thing is Jeans It's always easy to plug in. It's very convenient.
Snow boots were popular in Australia until the American Blaine created the UGG Australia brand in California, and sold it to the Dreckers outdoor company for $1 billion 460 million in 1995. UGG began to become popular among outdoor athletes in the form of brand.
After receiving UGG, Deckers will "comfort" as a selling point and package it into a brand. fashion The way of products is pushed to the market. Since then, UGG has been appearing frequently in fashion magazines and shows. In order to persuade consumers to accept such ugly boots, it is also fashionable. It mainly relies on celebrities and other opinion leaders in the early promotion. Among them, the American talk show queen Oprah, Leonardo, Cameron and so on are their "buyers".
And in Asia, if the Korean drama "sorry, I love you" in the classic UGG wearing a stills is a start, snowshoe boots since 2004 has entered the horizon of Asian consumers. But the popularity in China really broke out in 2007. At one time, whether it was Taobao, such as the electronic business platform, network Street photos or all kinds of retail stores under the line, snow boots began to appear in a wide range. After its Paris fashion Monday, its imitations quickly appeared in stores like cheap water retailers such as Xiushui and Beijing zoo wholesale markets.
But tide products have a life cycle, and UGG is not free from vulgarity.
It is important to note that the above is snow boots, not UGG. UGG's rush into the Chinese market at the end of 2008 is not too good timing. The brand names of other snow boots, such as Internet communication, imitation and design, are all shortening the life cycle of UGG. In 2012, the turnover of Deckers Outdoor, the parent company of UGG, began to shrink, and sales dropped by 30%. People began to say that the company was on the verge of collapse. The British Guardian even published "UGG is going to collapse, and fashion circles will be reveling in it." Speech.
But the positioning of functional high-end fashion brands has saved UGG? Meghan Cleary, author of shoe are You, once said: "UGG is a brand that will never die." In 2013, its sales have miraculously regained growth. Even if the tide is out of date, it becomes more like a need for existence. It is a necessity for winter to bring warmth.
It is hard to imagine that if UGG was not placed next to luxury items such as Prada and LV from the beginning, what would it be now? It is easy to fall from the high end to the brand image, but it is too difficult to go from low to high. When Deckers cooled down in the heat of UGG, it remained undaunted to maintain the high exposure of UGG's luxury image, which enabled the brand to continue to focus on the center of light luxury. Brand development 。
"When women go to work, they do not wear snow boots, but we need to expand their shoes on formal occasions." UGG Michael D.Wellman, China's president, said in an interview.
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