Ugg Launched A New Concept Store For The First Time To Transform Into A Lifestyle Brand

Recently, in order to improve the brand's position in the fashion retail industry, UGG It launched a new concept store in the United States for the first time. In order not to be defined as a snow boots brand by consumers, UGG is committed to developing shoes, household casual wear, accessories and household products, and is trying to transform into a lifestyle brand.

In 1995, founder Brian Smith sold the shares of UGG to Deckers, an American external products company for operation. The company made Hollywood stars wear UGG snow boots and become popular in the American market, thus the products are widely popular in the world. However, in recent years, Deckers and its brand UGG, like Crocs, are in the bottleneck period of development. Their position in the fashion industry has gradually weakened, and they are considered to be outdated products. How to keep the UGG boom going has become an arduous task for Deckers.

As the products are despised by the fashion industry, UGG constantly wants to label them as fashionable. For many years, the brand has been trying to choose high-end stores instead of ordinary stores to sell their products to prove that they can luxury goods market On the market.

Anders, Strategic Development Director of Deckers Bergstrom explained that the brand pragmatism was behind the design of the new concept store. He emphasized that UGG was a very powerful footwear company with rapid growth in 2006. In that year, brand awareness and the focus within the company were mainly focused on footwear, which was the original category of brands. But 10 years later, the brand felt outdated. In view of the current depressed fashion retail environment, UGG needs to transform from a footwear company to a large-scale lifestyle brand.

Analysts said that this is also a strategy to adapt to the existing customer base and continue to promote growth for the brand to attract potential new customers. As early as 2009, Deckers carried out a special market research, and found that emotion is the key to connecting UGG and consumers. The company began to implement the lifestyle transformation. Brand executives said externally that UGG brand will also develop coat business in 2017.

Some analysts said that UGG's earlier products were too single, and the trend pieces must have a life cycle, and UGG cannot avoid its classic style Snow boots It accounts for an excessive proportion in its sales. According to Deckers' financial report for the second quarter of 2015, its brand UGG continued to promote the whole business, accounting for almost 85% of the company's total revenue. In the second quarter, the sales of UGG rose by only 0.9%, almost stagnating. Fashion consultant Locke Andrews released a data: "25% of women's wardrobes have a pair of UGG snow boots, which is an amazing number. But for those women, most will not buy the second pair.

In order to maintain performance growth, UGG started to march last year Men's wear market The brand also needs business support in this field. According to the official data of UGG, UGG The sales of men's shoes in spring and summer in 2015 accounted for 27%, an increase of at least 50% compared with 2014. In April, the brand appointed Rosie due to the company's innovation of its traditional footwear style Huntington Whiteley is the first brand ambassador of the brand women's wear series.

Gerard, Vice President of Retail, Deckers North America Marceda said that with the transfer of the company's strategy in recent years, the brand saw that consumers were very interested in the multi-channel shopping experience of the store. The purpose of the store was not limited to expanding the turnover, but related to the direction of the brand. The company planned to open more lifestyle concept stores like the United States in major cities around the world, and Shanghai in China was also included in the expansion list.

For UGG, some people like it and some people hate it. But there will always be moments when you or someone you know will wear these iconic boots. However, many fashion critics do not want to see the success of the brand. Deckers, parent company of UGG in 2012 The turnover of Outdoor declined, and a feature article of that year declared that "UGG boots are going to go out of business, and the fashion industry will revel in this." In the same year, Style Blazer wondered why the snow boots didn't disappear directly.

But shoes expert Megan Cleary once said: "UGG is a brand that will never die." UGG has always maintained its exposure, and everywhere it stands out its comfort rather than the fashion industry values. In the first 12 months up to the end of March, UGG's turnover reached $1.49 billion, recording an increase of 12.6%.