UGG single product growth slowed down
And “hole shoes” Crocs similar to rely on the star effect and fashion trend of popular UGG in the fire after the brand suffered a winter. Recently, UGG parent company US outdoor sports apparel company Deckers released the first quarter of 2017 earnings, all of its brand sales were double-digit decline. Overall sales of 174 million euros, compared with 214 million euros in the same period last year, down 18.4%, operating loss of 78.3 million US dollars, compared to 63.7 million US dollars last year, the loss has increased. And as Deckers performance support flagship brand UGG sales of 91.9 million US dollars, compared with $ 115 million in the same period last year fell nearly 20%. Last year, UGG parent company’s profits also appeared in the crash, which is closely related to the slowdown in growth of UGG. In the case of poor development of other brands, UGG’s revenue last year, an increase of only 2.1%, it is difficult to pull the Group’s performance growth.
Will focus on the Chinese market, UGG has been the glory of the gradual loss of heat. Beijing Business Daily reporter visited a number of UGG Outlets store in Beijing and found that although the store has a number of guests around the selection, but the actual purchase of UGG snow boots very few guests.
“Snow boots and UGG, these two concepts are not simultaneously instilled in the consumer .2008 into the Chinese market before, UGG’s cottage goods have been everywhere.” Apparel industry analyst Zhao Peiru said. In fact, UGG in Australia does not specify a brand of boots, it is actually collectively named sheepskin boots. The UGG as a representative of the snow boots brand, after entering China, by the young people mainly sought after by consumers. “Just like buying a pair of sports shoes will want to buy Nike, buy a pair of UGG snow boots is out of the same consumer psychology.But with the shoes is different, UGG style is very similar, it is difficult to buy a pair of shoes Have to buy the second pair of desire. “There are consumers to the Beijing Chinese Commercial News reporters.
The second spring hit the trademark war
UGG products as the most important producer, China is becoming the top priority of UGG layout. In order to please consumers, in 2013 UGG has been for the Chinese market to produce specific products, which is the other markets have never had treatment. Among them, the number of stores opened is one of China’s strategy, just in September 2014 there are six entities opened in China, and last year there are more than 30 stores opened. At the same time, UGG also expanded its own product category, the introduction of new shoes and only in the official online sales of high-end home products, hoping to attract more consumers.
In the Beijing area of Outlets stores, UGG new straw sandals, Peas shoes and other products, and snow boots suffered the same embarrassment. Outlets a sales staff told the Beijing Chinese Commercial News reporters, this year there are nearly ten thousand pairs of Peas shoes inventory, whether digest or unknown.
UGG’s parent company Deckers worked in the United States, China and Europe in 1999 as “UGG” and “UGG” as the “holder” of UGG’s “UGG” Australia “successfully registered as a trademark. But Australia Sydney snow boots manufacturer Australian Leather Pty as early as the 20th century, began to produce snow boots in the 1990s, and the trademark and UGG almost exactly the same. UGG that, Australian Leather Pty’s products suspected of infringement of their own possession of the UGG trademark rights, and will be brought to court. It is noteworthy that the Australian brand UGG is with the development of the sea Amoy channel by the Chinese consumers are exposed and recognized, because the product is too serious homogenization, which for UGG is not a small pressure.
Fashion is not million gold oil
UGG development path makes it easy to think of hole shoes Crocs card Luo Chi, as a period of time to drive up the consumer goods, and Crocs card Luo Chi, UGG also has its own life cycle, short-term fashion difficult to become Continuation of the brand halo of the “million gold oil”. “The two brands are similar, the two in the early stages of the product stressed are comfortable, but the level of comfort, for consumers is not the most sensitive, consumers consider the primary element is still Price. Thousand dollars price of UGG and 100 yuan price of other brands of snow boots, in the comfort of the case, the cost of high has become the first choice. “Zhao Pei said.
In order to improve the product cost, UGG also make efforts. Last August, UGG announced the coordination of global prices, the fall series first in China and Europe have about 10% decline in each pair. A price of 2,000 yuan after the sale price of 1480 yuan.
“In order to weaken the seasonal attributes, many snow boots manufacturers in the off-season also developed some shoes, such as peas shoes, music, music, leather shoes, Blessing shoes, etc., but that can only guarantee off-season without loss, simply not profitable. “A domestic snow boots manufacturers related personnel told the Beijing Chinese Commercial News reporters, for UGG industry such brands, the new product If you want to achieve profitability, you must abandon the emphasis on comfort, lack of design tone, or to open the way, jump out of the consumer’s inherent knowledge, which can be as much as possible from the chase products chase. But whether in the global context, or in the Chinese market, to establish a new image of UGG is not easy.