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Good morning. In today's newsletter, discover UGG's ongoing trend and its thriving marketing strategies.

 Reading Time: Approximately 7 minutes

BRAND

The Brief Story of UGG

As so many people know, UGG is a globally recognized lifestyle brand celebrated for its luxurious sheepskin boots, cherished for their comfort and iconic style. From their origins as cozy winter footwear, UGG has transformed into a fashion powerhouse, offering a diverse range of stylish options in footwear, apparel, and accessories. Known for its casual yet elegant appeal, UGG resonates with a wide audience, making it a favorite choice for those seeking both comfort and on-trend looks.

REPORT

UGG Insights

Sales

Note: Deckers is a parent company of UGG

Deckers Brand Corp. disclosed that the UGG brand achieved $930.4 million in net sales in 2023 Q3 and recorded an annual sales milestone of $1,981.97 million in 2022, equivalent to nearly $1.98 billion. The UGG brand's dominance in the market, particularly with its boots, is evident, as it holds a significant market share. In Q3 2023, UGG net sales decreased by 1.6%. But net sales are still strong. Actually, UGG made a big leap in Q3 2022 with a 7.9% increase in net sales reports and still sustains those numbers with just a 1.6% decrease. You can see parts of the reports for 2022 Q3 and 2023 Q3, respectively.

2022 Q3 Report

2023 Q3 Report

Search Insights

Ugg typically trends with the onset of colder weather, thanks to the iconic Ugg boots. You can see in the images below how frequently UGG has been searched in the search engine recently.

STRATEGY

5 Powerful Marketing Efforts of UGG

1. Loyalty Programs

The company's Direct-to-Consumer (DTC) channel features a successful loyalty program for the UGG brand, allowing consumers to earn rewards based on qualifying purchases or activities. This initiative has played a significant role in attracting new consumers, driving increased business, and contributing to the program's global success with over 7 million members.

Source: Deckers Outdoor Corp. Q3 Transcript

Basically, UGG Rewards works by allowing members to earn points. Once they reach 250 UGG® Points, they receive a $20 coupon via email, redeemable at UGG.com or any UGG® retail store in the United States. UGG® Rewards expire in 90 days. Members who complete their online profile enjoy benefits like priority notifications about new items and promotions, a birthday surprise, bonus UGG® Point opportunities, and more. Both domestic and international consumer loyalty programs further enhance the brand's positive impact, providing customers the opportunity to accumulate points and receive awards.

2. Impressive Social Media Efforts

UGG demonstrates a mastery of social media engagement through a multifaceted approach. Firstly, the brand strategically harnesses the widespread influence of renowned celebrities and models with expansive global followings on Instagram. This intentional collaboration serves as a dynamic vehicle to effectively showcase and promote their diverse range of products to a vast audience. Secondly, UGG places a premium on authenticity, ensuring that its digital presence seamlessly aligns with the brand's well-established image. By adhering to standard advertising aesthetics on the platform, UGG not only maintains a consistent visual identity but also cultivates a genuine and relatable connection with its audience.

3. Strategic Marketplace Expansion

UGG is strategically expanding its distribution through lifestyle and sports-style partners to reach this demographic more effectively. This approach aligns with the brand's comprehensive distribution strategy, which encompasses a diverse array of channels. From fashion lifestyle retailers such as Urban Outfitters and ASOS to esteemed higher-end department stores like Nordstrom, Dillard’s, and Macy’s, UGG ensures a wide market presence. The brand also collaborates with streetwear and sports-style partners like Footlocker and Journey’s. Recognizing the significance of online retail, UGG maximizes its reach through platforms like Amazon.com, Zappos.com, and Zalando.com. The company's adaptability to changing consumer preferences underscores its commitment to staying at the forefront of the dynamic retail landscape.

4. Strategic Collaborations

UGG teams up with top brands to introduce fresh designs and styles, aiming to attract a wider audience and stay fashion-forward. These collaborations bring a unique and dynamic flair to UGG's products, showcasing creativity and expanding the brand's influence. As an example, UGG teamed up with Madhappy to launch new products, emphasizing a community-focused approach and the power of softness. This collaboration draws inspiration from shared elements, resulting in timeless, quality-crafted items that encourage embracing softness in our collective communities.

5. Omnichannel Approach

The UGG brand embraces an omni-channel approach where its websites and retail stores are intricately interconnected, showcasing a seamless and integrated strategy. This intentional alignment allows consumers to engage with both retail outlets and online platforms in a cohesive manner, fostering a unified shopping experience. It is common for consumers to interact with both physical retail stores and online websites, creating a versatile pathway for making informed purchasing decisions. This omni-channel strategy reflects UGG's commitment to providing consumers with a fluid and interconnected journey across various shopping channels.

SUM UP

CONCLUSION

UGG, a brand that has stood the test of time, has consistently demonstrated its ability to adapt and innovate in response to the ever-evolving landscape of marketing. This unwavering commitment to adaptability has ensured that UGG remains a relevant and sought-after brand in the fashion industry.

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