What Has UGG Experienced In The Past Ten Years?

DECKERSOUTDOORCORP was founded in 1975, mainly engaged in

High performance outdoor sports and daily leisure life.

In shoes,

The whole range of products and accessories is well known for its innovative design and marketing.

The company was listed on NASDAQ in 1993 and listed on the New York stock exchange in 2014.

In order to expand the company's sales and increase the diversity of products, DECKERSOUTDOOR acquired a Simple brand through a series of pactions from 1993 to 1996. The core idea of Simple manufacturing is to minimize the impact of footwear production on the environment through environmental protection materials and green processing technology, and bought the UGG brand in 1995.

UGG brand is the main contributor to the company's revenue and profits.

The company currently operates three brands: UGG, Teva and Sanuk.

UGG originated in the coastal area of southern California in 1978, and has built up a luxurious and comfortable brand reputation in the world with its excellent material selection, high standard shoe making technology and innovative design style.

Today, UGG has surpassed the brand positioning of the original classic leather boots and sandals products, and has become a popular American fashion brand in the world. At present, it has shoes, clothing, accessories, bags and a full range of four seasons products.

Teva is positioned as the leader of the brand of outdoor sports sandals in the United States, and also a pioneer in the field of outdoor life footwear.

Sanuk has been mainly engaged in the production of shoes suitable for surfing when it was first acquired. Now its positioning is casual life shoes. It will also expand men's sports shoes and ladies' canvas shoes and ballet flat shoes in the future.

The brand wants to differentiate itself through non-traditional materials and innovative designs.

UGG brand accounted for more than 80% of the company's sales, and 2016Q1 accounted for only 52.5%.

The proportion of direct selling channels in the total sales volume of the company has increased year by year, and the number of retail stores has increased year by year.

At the same time, the UGG brand occupies a very high proportion in the whole DTC channel sales. In recent years, it has even reached 95%, while the sales margin of DTC channel is about 1.2% higher than that of the wholesale channel. This shows that the UGG brand has played a decisive role in the overall profit level of the company.

According to the world clothing and shoe net, UGG currently has two main sales channels, Wholesale and DTC (DirecttoCustomer).

The Wholesale way includes selling goods in high-end department stores such as Nordstrom, NeimanMarcus, Dillard's and Bloomingdale's, which are sold through independent retail stores such as Journeys and professional shoe selling websites such as Zappos.com.

The company believes that reasonable channel choice has laid the UGG luxury brand positioning.

DTC channels include retail and e-commerce businesses.

As a very important part of the company's all channel sales strategy, the DTC channel provides a very good platform for UGG brand to understand consumer demand, and also improves the company's gross profit.

The company also provides services such as "online purchase, offline purchase", "online purchase, offline return" and "online purchase information", which can be combined online and offline to provide consumers with better shopping experience.

The company's retail stores mainly include UGG brand concept store and UGG outlets store. UGG's concept store can display brand products including shoes, accessories, handbags and household products.

The UGG outlets store not only has full price new products, but also some of the last season's products and products specially designed for outlets.

As of June 30, 2016, the company has 150 retail stores worldwide and operates 20 shopping platform platforms in 9 countries.

UGG's unique marketing strategy

Star lighthouse effect leads fashion trend

The original intention of UGG is UglyBoots (ugly shoes), which is criticized by fashion circles since its birth. Deckers has painstaking efforts to popularize UGG. They first aim at another kind of Lighthouse in the fashion discourse circle, the stars. By giving the UGG to those stars who are exposed most frequently by paparazzi, these stars wear UGG Street pictures and frequently appear in fashion magazines.

In 2000, the American talk show queen Oprah Winfrey also presented the shoes to the audience in the "FavoriteThings" unit of the program.

As a result, people began to pay more and more attention to this strange shape, but many celebrities are reluctant to put their hands on it.

In the following 2003 and 2005, Oprah recommended UGG shoes for two times in this unit.

In 2003, with the skin and hair shoes appearing in fashion shows in Milan and New York, the fashion top crowd who had resisted UGG finally finally recognized UGG's fashion status.

In the same year, the UGG classic snow boots launched two new colors: baby blue and baby powder. The iconic snow boots were first launched with soft colors, and were named the annual brand by FootwearNews, the industry's authoritative magazine.

Hunger marketing detonating boiling point

The full fall of fashion discourse circles has accumulated enough psychological heat.

At this point, DECKERS began to turn to the topic of consumer market manufacturing. They joined hands with Nordstrom, a large US chain corporation, and announced that every American family could only buy 4 double UGG at Nordstrom.

The "limited" gimmick enlarged the curiosity of people before, and at one time, the popularity of these "ugly shoes" was finally brought to the boiling point.

The unique marketing strategy led to a substantial increase in UGG sales. UGG's net wholesale sales increased from $23 million 490 thousand in 2002 to $150 million in 2005, with an average annual compound growth rate of 65.5%.

UGG has successfully found a series of important popular nodes: from the leading and endorsement of fashion idol to the spread and promotion of loyal fans, and to the follower and reinterpretation of the public.

06-11: fashion trend leader, outstanding performance boosted stocks up sharply

We explore the driving factors behind the stock trend by comparing the trend of DECKERSOUTDOOR stock with the other two well-known US footwear companies StevenMadden, WolverineWorldWide (WWW) and Nasdaq composite index (IXIC.GI).

Referring to the company background: STEVEMADDEN (Steve Madden), founded in 1990, is headquartered in Long Island, New York. It is a footwear group specializing in the design and sale of all kinds of women's shoes, men's shoes and children's fashionable footwear.

WolverineWorldWide is the giant of the footwear industry in the United States. It is a designer, manufacturer and marketer of casual footwear and clothing. It designs and manufactures outdoor footwear and apparel, industrial working shoes, boots and clothes, and so on, which has Merrell, Sebago, Cushe and Chaco brand shoes.

The three companies are well-known footwear companies in the United States.

In the 5 years from 2006 to 2011, the overall market showed an upward trend with an increase of 16.11%. SteveMadden, WWW and DECKERS all followed the big market, or rose ahead of the market, of which SteveMadden rose 286.53% and WWW rose 53.74%.

The DECKERS rose sharply at this stage, with a cumulative yield of 679.80%, much higher than that of the other two enterprises, which is mainly related to its excellent sales performance.

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Sales increased from $304 million to $1 billion 377 million in 06 to 11 years, with an average annual compound growth rate of 35.24%.

At the same time, the profitability of DECKERS is also excellent. Its gross margin and net interest rate have been in the leading industry level from 2006 to 2011.

At the same time, the sales growth rate of UGG is higher than that of the company's overall sales growth in this segment. The sales volume of UGG has accounted for more than 80% of the total sales of the company, indicating that UGG is the key driving force to promote the rapid sales of the company.

Top fashion magazines and TV programs promotion and marketing

UGG's increased share of sales comes from the company's excellent marketing skills: on the one hand, the company promotes UGG brands in top fashion magazines including Vogue, TeenVogue, Glamour, OManazine, etc.

At the same time, in order to attract more attention from male consumers to UGG, UGG brand has also launched UGG ads in male fashion magazines such as Outside, Men 'sVogue, GQ and Surfer since 2005.

These advertisements can not only attract consumers' attention to the UGG brand, but also help UGG establish a high-end luxury and comfortable brand image.

The UGG brand also benefits from the introduction of UGG new products in famous fashion magazines such as Glamour, Instyle, Cosmopolitan, MarieClaire, People, USWeekly, Maxim, and the trend guide of Star Street to UGG wear.

On the other hand, in order to enhance the popularity of the brand in the world, UGG promotes products in the national magazines such as VogueJapan, MarieClaireUK and other famous magazines.

UGG brand also launched new products timely according to the celebrations of different countries. For example, in order to expand sales in Switzerland and enhance brand influence, the company designed a special snow boots for the Swiss Olympic team in 2006. This marketing campaign has successfully established a high-end, high quality and warm image positioning for UGG brand.

In addition to high-end fashion magazines, the UGG brand is also promoted through TV programs and TV dramas, and UGG brand shoes have appeared many times in TV shows including "Star Partner", "the Gilmore girl", "the queen in the Queen", "Will and Grace", "where the love is where" and so on, including in the Oprah Winfrey show show, George Lopez comedy show and Saturday night scene, and so on, the unique marketing means not only greatly enhance the popularity of the UGG brand, but also make the UGG brand a leading fashion word.

Pay attention to brand and product patent

The company pays great attention to the protection of brand and product patents. The UGGAustralia brand has registered a patent for every new product under the flag. This also makes the product have better division of the product compared with other products.

UGGAustralia has now registered brand patents in the EU, Canada, China, Japan and South Korea.

By the end of 2011, the company already owned more than 150 inventions and design patents at home and abroad, and more than 15 patents were being applied.

Expand product types and innovate

In order to increase the market share of UGG brand and increase the sales of UGG in autumn and spring, the company persisted in innovation, and constantly introduced new products adapted to different seasons. For example, in the spring of 2006, UGG brand launched for the first time a variety of toe sandals and cold towing.

At the same time, the company strictly controls the sales channels to ensure the high-end positioning of the brand.

Driven by the diversification strategy, UGG's products increased from 50 in 2002 to 125 in 2007. The representative products include the spring and autumn fashion series launched in 2006, the men's shoes series, the surfing series which are the main brands of the original brand, and the luxury slippers series.

In 2010, JimmyChoo, a famous shoe shoe brand marked by sexy high heels, joined hands with UGG brand. In October, it launched five UGG&JimmyChoo limited edition works, which shook the fashion circle again through the perfect combination of rivets, fringed, leopard and autumn and winter trend elements and snow boots. At the same time, UGG also decided to cooperate with SWAROVSKI in that year, and SWAROVSKI provided customized crystal for UGG shoes.

In 2011, in order to expand the diversity of UGG brand, UGG and the world-renowned four points star TomBrady cooperation began to enter the men's boot market.

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As can be seen from the above table, the diversified product strategy of the company has made initial achievements. The sales of UGG brand in the first half of the year have maintained a rapid growth, and the sales growth has exceeded the second half year and the full year sales for four consecutive years.

In the first half of the year, the proportion of UGG brand sales revenue is also rising.

Internationalization strategy

In order to promote the global influence and develop new markets, the company opened an office in London in April 2006 and opened an office in Hongkong in 2007.

In 2006, UGG opened its first flagship flagship store in New York. It provided the UGG fans with a direct feeling of brand culture and the first time to experience the whole line of products. In the same year, UGG was in the exclusive store of Japan's Ginseng road square.

As can be seen from the chart below, the growth rate of overseas income of the company is very fast, and its growth rate even reached 82.45% in 2011.

12 years: warm winter + sheepskin cost suddenly rises, UGG product single problem highlights

In 2012, the company's share price rose abruptly and fell to 44.60%.

At the same time, the market index rose 15.55%, WWW shares rose 26.08%, StevenMadden shares rose 28.40%.

The company's share price fell during this period mainly from four aspects:

The product is single and too dependent on the season.

Although the company has been implementing diversification strategy, compared with the other two companies in the same industry, the single brand UGG sales revenue contribution rate is still very high, reaching 83.44%.

The UGG brand's own product diversification strategy has not achieved significant results. The proportion of income in the two quarter of autumn and winter is still far higher than that in the two quarter of spring and autumn. This leads to a strong dependence on the overall sales of the company to the seasons. Compared with SteveMadden and WWW, the annual sales revenue of the two companies is relatively balanced.

The warm winter weather in 2012 brought a heavy blow to DECK company. The sales revenue growth rate of the company in that year was only 2.7%, much lower than that of 2011, while the total revenue of UGG brand decreased by 1.52% compared with that of 2011. The income in the first half of this year increased by 3.61%, and the income in the second half of the year decreased by 2.92%. While the SteveMadden of the peer industry was also affected by the climate in the autumn and winter season, the sales revenue growth rate in the second half of the year was only 13.27%, much lower than that in 2011, but the sales revenue of the whole year increased by 26.69% over the same period last year.

(due to the acquisition of WWW in October of this year, the volume of sales in winter is increasing, and it is not universality.

The company's inventory income reached its peak in 2012, exceeding 20%.

Inventory is mainly finished products, product backlog caused inventory growth is far greater than the growth rate of sales revenue.

The price of sheepskin has risen sharply, and DECK's production cost has been raised.

On the one hand, the price of sheepskin rose 40% in 2012 compared with 2011, which greatly improved the production cost of UGG brand, which was mainly made of sheepskin, and thus reduced the gross profit margin of the whole company.

DECK's gross profit margin in 2012 was 44.69%, down 4.61% compared to the same period last year, and its net interest rate was 9.12%, down 5.54% compared to the same period last year.

The EPS also dropped by 31.95% over the same period last year.

On the other hand, the raw material purchasing mode of the company in the past few years is to delegate the purchase right to the manufacturer, and the manufacturer chooses the supplier of raw materials himself.

However, these manufacturers are independent of DECK and have not signed a long-term supply contract with the company. DECK has no control over producers and raw material suppliers. DECK did not identify several fixed sheepskin suppliers until 2011. Such a supply mode made the company unable to control the price of sheepskin.

In contrast, WWW, the company's leather products mainly use pig skin, the company has a reliable supplier for more than 40 years in China, WWW relies on the long-term contract with the supplier, not only to ensure the reliability of pigskin quality, but also allows the company to get raw materials at a lower price.

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Fashion trend change

The trend of the world is always changing. Although UGG has been constantly introducing new products, many women in 2011 began to abandon the sheepskin appearance shoes instead of riding boots, motorcycle boots and fighting style boots.

In 2012, the fashion trend of New York's autumn and winter fashion week turned to classic retro and masculine, and the leather boots with leather sharp corners became the leading players in fashion.

Desire to expand overseas markets failed

The European economic crisis exacerbated the decline in purchasing power worldwide. In 2012, DECK's overseas market sales increased by only 2.14% compared with 82.45% last year.

13-14 years: UGG brand force to promote DECK's performance rebound

DECKERSOUTDOOR shares rose for 2013-2014 years, rising to 152%%, and the trend of the company's stock rose first and then decreased and the market trend was basically the same, but the increase was much higher than that of the big market. In the meantime, the overall market rose by 57.47%, while the WWW share price rose 61.14% in the same industry and SteveMadden shares rose 33.46%.

It can be seen that during this period, the development of the entire footwear industry is not booming, and the rise of a control company is not as good as that of the big market, and the rise of a control company is only slightly higher than that of the big market.

The sales performance of DECK company recovered in 2013 and 2014, and sales revenue increased. The net profit growth of the company also changed from negative to positive.

The gross profit and earnings per share of the company have been improved to varying degrees and occupy the leading position in the industry.

DECK's sales performance is good, mainly based on UGG sales growth, production cost reduction and direct selling channels.

UGG sales growth

The main reason why DECK's performance improved at this stage is mainly from the growth of UGG sales of its main brand. Its driving force mainly comes from the domestic market recovery, the international market force and the introduction of the home product line.

Warm winter dissipation, UGG domestic market sales resumption

The DECK company, which has stepped out of the warm winter, has been on the rise in the US. Its sales in China increased by 7.12% over the same period in 2013, much higher than 2.95% in 2012, and sales growth in 2014 continued to rise to 11.81%.

UGG because its main wholesale sales mode in the country, and its wholesale sales accounted for more than 75% of the company's total wholesale sales volume, we used the wholesale turnover of UGG to investigate the changes in its domestic sales. The wholesale volume of UGG dropped by 10.48% in 2012. After 2013, the exchange rate factor increased slightly by 0.6%. In 2013, although the UGG sales volume increased, the company reduced the average selling price of UGG for cleaning up the inventory last year, resulting in a slight increase in the wholesale volume of UGG. In 2014, the wholesale sales volume of the company basically recovered to the level before 2011, reaching 11.1%.

Promoting globalization strategy and opening up emerging markets in Asia

At this stage, DECK continues to expand its international market, taking into account the fact that the European market is still in a state of downturn. At this stage, the company will expand its market to the Asian countries represented by China and Japan. Under the guidance of this strategy, the sales volume of the international market of the company has increased significantly.

After excluding the factors of exchange rate changes, DECK's international market sales increased by 19.9% in 2013 compared with the same period in 2014, and continued to rise to 30.5% in 2014. The rapid growth of international sales has made the proportion of DECK sales in other parts of the world account for the total sales volume of the company. The proportion of sales in 2012 increased to 33% in 2012 and 33% in 2014, and then increased to 35.9% in 2014.

The increase in overseas sales is mainly due to the growth of UGG brand in overseas retail business and electricity supplier business. At the end of 2012, the company opened 40 new UGG outlets in China, more than 20 of which were in Asia, mainly in China and Japan, while the rest were in the US and Europe. In addition, the company opened a number of UGG retail outlets in the US, China, Canada, Japan and Hongkong at the end of 2013.

The growth of the company's overseas market performance is also inseparable from the growth of UGG electricity supplier sales. The sales channel of DECK's e-commerce channel has maintained a rapid growth in 13 and 14 years, of which 13 increased by 29.82%, and the 14 year growth rate was 37.48%. Meanwhile, the sales volume of the UGG brand's e-commerce channel increased 30.91% and 34.75% in that period, while UGG accounted for more than 90% of the sales channel of the e-commerce channel. It can be said that the rapid growth of UGG's sales in the electricity supplier channel has promoted the growth of the whole company's e-commerce sales.

Promote diversification strategy and layout household line

In 2013, the company's main brand UGG continued to implement the strategy of variety diversification, and released a series of home furnishings, which made the comfort and home design of classic UGG achieve harmony and harmony. At the same time, in September 2013, the 35th anniversary commemorative brand of UGG was founded in 1978 in the United States.

To celebrate this milestone, UGG first launched the "1978 series", launching a global celebration featuring the theme of "surfing culture in 70s".

In the same year, UGGTwinsole1+1 insole was listed as a versatile product that can replace insoles. Buyers can choose to match traditional cowhide insoles or UGG luxurious wool insoles when wearing casual shoes.

Decrease in production cost

According to the foregoing analysis, DECK's dependence on UGG brand in the past two years is still very high. The proportion of UGG's sales revenue to the total income of DECK companies is 82.18% and 81.29% respectively in 2013 and 2014, while sheepskin is the main raw material for the production of UGG brand, so the low price of sheepskin in 13 and 14 years has greatly reduced the production cost of the company.

In the same year, in order to reduce the dependence on raw materials, the company began to use UGGPURE wool instead of sheepskin when producing insole linings. Besides, the company began to reduce the wave of production cost by signing supply contracts and deposit margin with fixed suppliers.

Direct channel power

The increase in sales share of retail and e-commerce channels has also increased the company's profits, because in general, the profit margins of these two channels will be about 1.2% higher than those sold through wholesale channels.

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15 years: strong US dollar dragged down company performance and substitute for UGG market space

However, it did not last long. In 2015, the sales revenue of the company increased by only 3.2% compared with the same period last year, and the gross profit margin dropped by 3.17 percentage points year-on-year. The net interest rate dropped by 2.38 percentage points year-on-year, and the earnings per share decreased by 20.60% compared with that of the previous year. Accordingly, the company's share price dropped by 47.54% at that stage, while the market in the same period increased by 5.39%.

The company's poor performance in this phase mainly comes from the following three aspects:

Stronger dollar exchange rate

The US dollar exchange rate has been on the rise since 2013 and has been rising rapidly since 2015, which poses a great threat to the international business profits of the company.

With the promotion of DECK's internationalization strategy, the proportion of overseas countries' revenue in total company revenue is increasing. In 2015, the proportion has reached 35%, while DECK's overseas operating expenses are all paid in local currency. Overseas dealers also collect local currency. Besides, many of the subsidiaries of the company also keep part of the currency of local countries as operating reserve funds.

The strengthening of the US dollar has frustrated the company's overseas earnings.

UGG growth is weak, and substitutes occupy market space.

As the most important brand of DECK company, UGG has always been an important factor in promoting the growth of company performance. But in 2015, the sales growth of UGG was only 2.09%, far lower than that of 9.75% and 14.96% in the previous two years. UGG's sales growth in autumn and winter in traditional sales season was only 0.96% and 0.98% respectively.

Despite the changing fashion of shoes every year, UGG, which has unmatched comfort and warmth, has always been a must for winter. But in 2015, the popularity of duck hunting boots broke the position of UGG in the field of snow boots.

The trend of DuckBoots began to sprout about two years ago, until the New York fashion week in 2014 blowout.

Because of its own Outdoor style outdoor boots, it looks masculine and is suitable for both men and women. Duck hunting boots become a fashionable magic weapon for the tide makers in the winter.

The stars who once supported UGG have already put on a more practical and durable DuckBoots.

Sorel, the representative brand of duck hunting boots, rose by about 30% in 2014, to $166 million.

In 2015, Sorel brand global net sales increased by 26% (fixed exchange rate 34%) to 209 million US dollars, much higher than that of UGG brand.

Increase in company promotional expenses

In 2015, the growth rate of company inventory was much higher than that of revenue growth.

In order to boost sales and speed up inventory, the company's promotional expenses continued to increase in that year. In the same year, the company paid a lot of relocation fees, resettlement and severance payments and early termination of retail store lease compensation in order to optimize the integration of retail stores and offices. All of these significantly increased the company's SG&A. By the end of March 2016, SG&A accounted for 36.5% of sales revenue, although it grew by only 4.72%, but still higher than the growth rate of revenue.

Where does DECK go in the future?

Corporate restructuring

DECK acquired the Koolaburra brand in April 2015. It is a fashionable leisure footwear brand with sheepskin and plush as its main material. Its product positioning is the middle end market, aiming to make more customers buy wool shoes while maintaining the high-end positioning of UGG brand.

In order to streamline its brand, DECK sold a small proportion of MOZO and TSUBO brands in July 2015 and February 2016 respectively. MOZO is the brand of chef shoes, and TSUBO is the brand of high-end clothing and casual shoes.

At the same time, the company announced in February 2016 the optimization of retail stores and the integration of office premises. The purpose of integration is to simplify the brand management process, reduce unnecessary expenses and improve the company's operational efficiency.

The company divides its brand into two groups, one group is positioned as fashion wind, the brand includes UGG and Koolaburra, the other group is positioned as lifestyle, brand includes Teva, SanukandHokaOneOne Hoka (Hoka). After reorganization, the company has three brands including UGG, Teva and Sanuk, and other small brands include Hoka, Ahnu and Koolaburra.

The integration also includes moving the Sanuk brand operation center in Erwin, California, to the California headquarters in the headquarters of the company and closing the Ahnu product operation center in Richmond.

In addition, the company is evaluating all retail outlets, and has identified 24 retail outlets that are not well operated, and has closed 3 in 2015 and closed 6 in the first quarter of 2016.

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Launch of new products

In the autumn of 2016, UGG introduced a new classic product Classic2.0, which was rebuilt in classic design, trying to integrate the sense of fashion with pragmatism.

So far, the UGG family has grown into five branches, including street fashion ClassicStreet, Classic2.0, ClassicSlim, ClassicCuff and ClassicLuxe using Mouton lamb skin.

The sales volume of DECK company decreased by 18.40% from April 2016 to June compared with the same period of June. The gross profit margin of the company was 43.72%, up 3.22% from the same period last year, but the operating profit and net profit were both negative. The decrease in sales and restructuring of the company and the increase in the cost of the business pformation project made the company's operating profit and net profit both negative in the quarterly report of 2016.

According to a quarterly report in 2016, the company's earnings per share were -1.84 dollars, adjusted by -1.80 dollars per share, down 25.87% compared to the same period last year.

Nevertheless, the company's earnings per share still exceed Zacks's expected -2.05 dollars.

Despite the poor performance and sustained losses in the first quarter, the company's performance has exceeded expectations, and the company's brand restructuring has been favorable for the development of the company in the long run. The company's stock price has maintained a good growth. It has increased by about 13.23% since the end of March 2016, and the market share rose by 7.46% in the same period.

The company has a large increase in inventory in 2015, but the sales increase is very small, and it may face the problem of inventory clearance in 2016.

In addition, part of the cost of restructuring is not paid, which may affect the profitability of the 2017 fiscal year.

At the same time, this article has also analyzed before that although DECK has been increasing the variety of shoes and increasing the share of sales through the acquisition and brand adjustment, UGG is also increasing its product types while creating innovative styles, trying to establish the positioning of life brands, but sales of UGG brands in spring and summer are still far lower than those in autumn and winter. Brand pformation and diversification may take a longer time to achieve.

DECK company's inspiration to A share spinning and clothing enterprises

Accurate product positioning and excellent marketing tools can help brands quickly become popular.

As the main brand of DECK company, UGG has clearly defined its luxurious and comfortable product positioning in the first place. In specific terms, regardless of the fine selection of sheepskin quality and shoemaking process, or the choice of high-end shopping malls as the main body of marketing channels, no matter whether the company can publicize UGG through the advertising and star effect created by heavy gold, it is clear that this position is further clarified.

In addition, we should see that UGG has developed from an abbreviated brand of "ugly" boots, which is not noticed, to a leader of fashion trend. The company has made remarkable marketing efforts. It has continued to lead fashion from Star Street to "lighthouse effect" and "hunger sale" to promote fashion through the continuous sponsorship of top fashion magazines and TV dramas and movies, and to continuously enhance brand differentiation with the brand patent strategy. UGG has been popular and maintained high speed growth for many years since 2000.

Sustainable growth and profitability of brand sales need to consider multiple factors.

The myth of UGG's sale ended abruptly in 2012. Although the company's performance has improved since 2013, the sales growth of UGG is far below that of the previous 2011 level. It can be seen that a brand needs to consider various factors in order to maintain its long-term development.

From the point of view of raw materials, the company has better stable supplier of raw materials, so as not to be in a passive state in extreme weather or global market changes. From the production side, the company's products should be balanced as much as possible in the four seasons, otherwise it will be restricted by weather factors.

Take UGG as an example, because most of the sales of UGG brand are in autumn and winter, once the warm winter weather happens, the sharp decline of sales volume is inevitable. From the demand side, the fashion trend has been changing and people's choices are becoming more and more diversified. In order to maintain brand attractiveness, the company should pay more attention to the fashion of product design in addition to its comfort and technology sense. At the same time, the company can also expand its brand by expanding its brand image.

From an enterprise point of view, when a single brand is unable to meet the demand of fashion according to the restrictions of raw materials or manufacturing processes, the company should achieve the goal of sustainable development through the new brand or the diversified strategy of merging existing brands.

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