The special advantages of ugg boots
Recently, Deckers, UGG’s parent company, American outdoor sportswear company, released its first-quarter earnings report for 2017, which saw double-digit declines in sales of all its brands. The total sales amounted to 174 million euros, which was 18.4% lower than the 214 million euros in the same period of last year. The operating loss was 78.3 million U.S. dollars, which was an increase from the 63.7 million U.S. dollars in the same period of last year. UGG, the flagship brand underpinned by Deckers’ performance, had sales of 91.9 million U.S. dollars, a decrease of nearly 20% from the same period last year of 115 million U.S. dollars. Last year, UGG’s parent company’s profits also plummeted, which is closely related to the slowdown in UGG’s growth. In the case of bad development of other brands, the UGG revenue grew only 2.1% for the whole year. It is difficult to stimulate the growth of the Group’s performance.
Focusing on the Chinese market, UGG’s former glory has gradually lost its popularity. Beijing Business Daily reporter visited a number of UGG Outlets in Beijing store and found that despite the number of guests in the store to hang around, but actually buy very few UGG snow boots guests.
“Snow boots and UGG, these two concepts are not simultaneously instilled to consumers. Before entering the Chinese market in 2008, UGG’s knockoff shipments have been all over the place.” Clothing industry analyst Zhao Peiru said. In fact, UGG does not specifically refer to a certain brand of boots in Australia. It is actually the collective name for sheepskin boots. UGG, as the representative brand of snow boots, has been sought after by young people after entering China. “Like buying a pair of sports shoes would like to buy Nike, buy a pair of UGG snow boots is the same consumer psychology. But unlike sports shoes, UGG’s style is very similar, it is difficult to buy a pair of shoes There is a desire to buy a second pair.” Some consumers told the Beijing Business Daily reporter.