UGG (brand)

UGG
Industry Retail
Founded 1978
Founder Brian Smith
Headquarters Goleta, California, U.S.
Area served
 Worldwide
Products Footwear, accessories
Revenue $1.8 billion[1]
Parent Deckers Brands
Website www.uggaustralia.com

UGG is an American footwear company and a division of Deckers Brands.

UGG is a registered trademark in the United States and over 130 other countries for footwear, as well as bags, clothing, outerwear, home goods and other products. Deckers is headquartered in Goleta, California[2] with an e-commerce division located in Flagstaff, Arizona.[3]

The UGG brand is best known for its distinctive "Classic" sheepskin boots for both men and women.[4] With roots in traditional Australian ugg boot design, the boots have developed over the years to become what is now known as the UGG "Classic" style. UGG brand boots have been identified as a fashion trend for women and men since the early 2000s.[5][6] The range has expanded to include various styles of footwear, including leather, canvas and other materials, handbags, clothing, outerwear, hats, gloves, home products such as blankets and pillows, and other goods. Deckers has reported sales of US$689 million under the UGG brand in 2008,[7] an increase from US$14.5 million in 1995.[8] The company’s profits have consistently increased over the years, with sales exceeding $1 billion consecutively since 2011.[2][9]

History

A pair of UGG boots

UGG was founded in California in 1978[10] by Australian surfer Brian Smith and Doug Jensen. Smith was living in Santa Monica, California after studying at UCLA's Anderson School of Management.[11] Smith and Jensen first applied to be the United States distributors for the Western Australian sheepskin boot manufacturer, Country Leather. Unhappy with the brand, Smith trademarked UGG.[4] Later, family friends invested $20,000 into the venture and the group set up Ugg Imports. In their first season in business, Ugg Imports sold 28 pairs of boots. Due to other business commitments, in 1979 Jensen handed over his share of the company to Smith. Sales steadily grew and Smith set up Ugg Holdings Inc. and in 1985 registered a US trademark on a rams head logo with the words "Original UGG Boot UGG Australia".[12] By 1994, 80 percent of UGG's sales were in southern Orange County, but the company gained international attention after the boots were worn by the U.S. Olympic team in Lillehammer for the 1994 Winter Olympics.[11]

In 1995, Deckers Brands, acquired Smith's business for $14.6 million and continued to expand it.[13] During the late 1990s, UGG began experiencing double-digit sales growth as Deckers developed the company into an international brand. In 2003, UGG boots were included on Oprah Winfrey's show as part of "Oprah’s Favorite Things."[14] Afterwards, the brand received an unprecedented surge in sales.[14][15] In 2006, UGG opened its first brick and mortar store in New York's SoHo neighborhood.[16] The company opened its first international store in Japan later that same year.[17]

UGG partnered with designer shoe brand Jimmy Choo in 2009 to launch a capsule collection combining the brands' styles.[18] The following year, UGG debuted a collection of boots designed in collaboration with Swarovski. The company launched its first men's advertising campaign in 2011 featuring New England Patriots quarterback Tom Brady in 2011.[19] The first UGG for Men stand-alone store opened in New York in 2012.[20] UGG reported over $1 billion (U.S) in sales for 2012.[2] UGG products are manufactured in a number of countries, primarily China.[21] Deckers continues to source most of its sheepskin from Australia.[22][23] Its collection of home goods launched in 2013 and included products such as rugs, blankets, pillows and other home pieces.[24] In June 2015, Ugg has announced a collaboration with Pixar studio. The lifestyle brand launched a capsule collection reflecting Pixar’s newest film “Inside Out.” [25] They have produced many colourful, Disney-themed UGGs, featuring Mickey Mouse, Minnie Mouse and also Tinker Bell.[26]

UGG boots have been a style staple since they first appeared on Oprah Winfrey's show in her second edition of "Oprah's Favorite Things" in 2003,[15] in which she purchased over 350 shoes for her staff and audience.[27] The boots gained a large celebrity following and were frequently seen on notable people such as Kate Upton, Blake Lively,[28] Kate Hudson, Cameron Diaz, Jennifer Lopez,[29] and Sarah Jessica Parker[15] who also wore them on the HBO series "Sex and the City" as Carrie Bradshaw.[30] This marketing campaign "led to an exponential growth in the brand's popularity and recognizability."[31]

In 2013, various Vogue editors wrote about wearing an owning UGG boots following testimonials by fashion figures such as Alexa Chung and André Leon Talley who posted about their UGG boots.[28][32]

The shoes have also been spotted on celebrities including actor Leonardo DiCaprio and The Rolling Stones guitarist Ronnie Wood.[33]

Trademark disputes

In 1971, Shane Steadman registered the trademark UGH-BOOT on the Australian Trade Mark Registry, and obtained an Australian registration for UGH in 1982. These registrations remained valid in Australia until removed for non-use in 2006. Steadman sold his UGH brand boots widely in Australia throughout the 1970s and 1980s.[34][35] This registration was subsequently sold to Ugg Holdings Inc. in early 1995. In August 1995, Deckers Brands purchased Ugg Holdings, and in 1999 registered Ugg Holdings trademarks, including the UGG AUSTRALIA label (with sun-like device), in Australia. However, attempts by Deckers to stop other traders using the "UGG" mark in Australia led to a decision by IP Australia that "UGG" is a generic term in Australia and New Zealand to which Deckers did not have trade mark rights.[36][37] Nevertheless, Deckers holds registrations for the UGG trademark in the United States, China and over 130 other countries.[38]

The validity of the UGG trademark outside of Australia has also been challenged, but courts have consistently upheld its validity. In 2004, Deckers filed a case against Koolaburra in the California federal court asserting that their use of "Ug" was trademark infringement.[31][13] Koolaburra argued that the UGG trademark was invalid as being generic and obtained by fraud.[31] In February 2005, the court ruled for Deckers stating that survey evidence clearly demonstrates that the UGG mark is not generic. There was no evidence that Smith acted with an intent to defraud the Trademark Office, and consumers would likely be confused with the similarity in "appearance, sight and sound" between "Ug" and "UGG" as the parties were marketing in direct competition with identical products. However, the court declined to rule on the validity of Deckers' Australian trademark registrations in the context of the U.S. case.[31]

Other UGG trademark disputes have occurred with companies including Luda Production Pty[39][40] and Emu Australia,[41][42][43] as well as local manufacturers in countries such as Turkey and China.[38][38]

In August 2016, the Australian Federal Senator Nick Xenophon called for international protection of the Australian footwear term ugg.[44]

Counterfeiting

Deckers actively enforces its trade mark rights in those countries in which it has succeeded in obtaining trade mark rights to "UGG". Deckers' UGG products are inexpensive to make, have a relatively high sale price and are rarely discounted. According to Deckers' brand-protection unit, in 2009 it took down 2,500 "fake" websites, 20,000 eBay listings and 150,000 other online auction listings with 60,000 pairs of "counterfeit" UGG footwear confiscated by customs agents.[45]

Law enforcement officials in the UK, the U.S. and China have reported seizures of counterfeit UGG brand boots.[46][47][48] In 2009, US customs agents confiscated 60,000 pairs of fake UGG boots, and the company took action against 2500 websites that were selling fraudulent products, as well as some 170,000 listings on eBay, Craigslist and similar sites.[49][50]

The National Arbitration Forum, which has been appointed by ICANN to resolve most Internet domain name disputes, has used Deckers Brands ownership of the UGG trademark in the United States as part of several decisions to direct Internet domains containing UGG to be transferred to Deckers.[51][52][53][54][55][56]

Concern for animals

Since UGG boots are one of many clothing products made from animal skin, the production of UGG boots has been the subject of criticism by the animal liberation movement.[57] In the decade beginning in 2000, the group called for the boycott of UGG boots and their replacement with alternatives not made from animal skin.

In 2007, Pamela Anderson, realizing that UGG boots were made of sheepskin, wrote on her website that she does not support the brand any longer.[58] In February 2008, the Princeton Animal Welfare Society staged a campus protest against the fur industry, particularly attacking the sheepskin industry. "Students lay in the newly fallen snow on the Frist Campus Center's North Front Lawn on Friday afternoon, feigning death, wearing coats covered with fake blood and sporting signs that read, 'What if you were killed for your coat?' "[59]

See also

References

  1. ↑ "UPDATE 1-Deckers cuts full-year forecast as demand for UGG shoes slows". Reuters. January 29, 2015. Retrieved April 29, 2015.
  2. 1 2 3 Sutherland & Tara Lachapelle, Brooke (November 26, 2012). "UGGs in Play With Deckers Seen Luring Buyers: Real M&A". Bloomberg.com. Retrieved February 23, 2013.
  3. ↑ Wittig, Stacey (January 3, 2011). "Footwear Innovators Building Global Lifestyle Brands from Flagstaff". Flagstaff Business News. Retrieved April 13, 2012.
  4. 1 2 Brian Smith (2014). The Birth of a Brand.
  5. ↑ Grant, Lorrie (December 10, 2003). "UGG Australia boots a fashion kick". USA Today. Retrieved August 25, 2010.
  6. ↑ Stimpert, Desiree. "Everything You Ever Wanted to Know about Ugg Boots". About.com. Retrieved August 25, 2010.
  7. ↑ Abkowitz, Alyssa (August 19, 2009). "Deckers finds its footing with Uggs". Fortune Magazine. Retrieved August 25, 2010.
  8. ↑ "Deckers Outdoor completes acquisition of UGG Holdings (Press release)". Business Wire. Retrieved August 25, 2010.
  9. ↑ Kate Abnett (December 10, 2014). "How Ugg Turned a Fashion Trend Into a Staple". Business of Fashion. Retrieved April 29, 2015.
  10. ↑ Kim Bhasin (16 August 2014). "Ugg Is Sick Of Being Pigeonholed For Its Boots". Huffington Post. Retrieved 28 May 2015.
  11. 1 2 Tara Johnson (2 April 2015). "How UGG Founder Brian Smith Turned a $500 Loan into Billion Dollar Brand". CPC Strategy. Retrieved 28 May 2015.
  12. ↑ Higgins, Pamm (October 2001). "Booty Call". Los Angeles Magazine 46 (10): 75.
  13. 1 2 Behind the Brand: The Golden Fleece Wall Street Journal September 9, 2010.
  14. 1 2 Julie Neigher (20 December 2009). "It looks like Ugg love". Los Angeles Times. Retrieved 28 May 2015.
  15. 1 2 3 Lorrie Grant (10 December 2003). "UGG boots a fashion kick". USA Today. Retrieved 28 May 2015.
  16. ↑ Samantha Critchell (24 October 2013). "An ode to Ugg, the boot with staying power". The Seattle Times. Retrieved 28 May 2015.
  17. ↑ Martin Webb (21 February 2006). "Party round-up: Chloe, Maison Martin Margiela, Bernhard Willhelm, Alexander Lee-Chang . . .". The Japan Times. Retrieved 28 May 2015.
  18. ↑ Elena Andreou (16 September 2010). "UGG Australia and Jimmy Choo Collaboration". InStyle UK. Retrieved 28 May 2015.
  19. ↑ Aditi Kinkhabwala (12 September 2011). "Unlikely Pair: UGG and Tom Brady". Wall Street Journal. Retrieved 28 May 2015.
  20. ↑ "UGG Australia and GQ Opens First UGG for Men Store in New York City". Reuters. 6 June 2012. Retrieved 28 May 2015.
  21. ↑ Nicolas Boot (November 9, 2004). "Ugg Boots". 7 Perth. Retrieved January 13, 2011.
  22. ↑ He, Xin. "Material Prices Can't Keep Deckers Down Forever" Seeking Alpha, April 20, 2012. Accessed March 1, 2013. Quote: "UGG only manufactures sheepskin from certain regions in Australia and the supply of Australian sheepskin is limited due to a high wool price."
  23. ↑ Kelly, Brad. "DECKERS OUTDOOR CORP. Goleta, California; Dismissed As A Fad, Uggs Sheepskin Boots Have Staying Power." Investors Business Daily, March 16, 2007. Accessed March 1, 2013.
  24. ↑ Lauren Levinson (19 September 2013). "UGG Unveils Home Collection - And We Like It". Elle. Retrieved 28 May 2015.
  25. ↑ Ehlers, Sara (June 26, 2015). "Ugg partners with Pixar to create "Inside Out" collection". FashionUnited. Retrieved July 30, 2015.
  26. ↑ "UGG Official Disney Collection". UGG. 2016.
  27. ↑ Sandra M. Jones (August 25, 2007). "Ugg's arrival just in time for winter". Chicago Tribune. Retrieved May 28, 2015.
  28. 1 2 Kim Bhasin (March 3, 2014). "Why Ugg Boots Will Never Go Away". Huffington Post. Retrieved May 28, 2015.
  29. ↑ "Aus weichem Wildleder mit Butter." Cernotazi, 3 November 2012. Accessed 26 March 2013.
  30. ↑ Jasmine Garnsworthy (January 13, 2015). "Ugg Boots Are Coming Back in Style, According to Vogue". Style Caster. Retrieved May 28, 2015.
  31. 1 2 3 4 "United States District Court UGG Holdings, Inc. -v- Clifford Severen et al" (PDF). Deckers Brands. February 23, 2005. Retrieved 12 February 2013.
  32. ↑ Alexandra Macon (February 15, 2013). "The Secret's Out: Confessions of Vogue's Ugg Addicts". Vogue. Retrieved May 28, 2015.
  33. ↑ Chris Irvine (November 3, 2008). "Ugg Boots become must have fashion accessory for celebrity men". London: The Telegraph. Retrieved May 28, 2015.
  34. ↑ Laurie L. Dove. "How Ugg Boots Work". How Stuff Works. Retrieved May 28, 2015.
  35. ↑ Jenny Stocks (February 14, 2011). "The Ugg inventor who gave £500m the boot: He sold the idea for £10,000 and three free pairs a year". London: Daily Mail. Retrieved May 28, 2015.
  36. ↑ Trade Marks Hearings 16 January 2006. Decision of a delegate of the registrar of trade marks with reasons. Pg 10
  37. ↑ Marks, Kathy (18 January 2006). "Ugg: How a minnow put the boot into a fashion giant". The Independent. Retrieved 23 May 2016.
  38. 1 2 3 Website of Walker Morris UK solicitors firm, Leeds. "Bootiful - UGG recognised as a well known mark in Turkey" Legal Briefing from the Trade Marks and Designs Group, 3 October 2011.
  39. ↑ Windsor, Alison (August 11, 2006), Decision of a Delegate of the Registrar of Trade Marks with Reasons (PDF), IP Australia, retrieved September 4, 2010
  40. ↑ Windsor, Alison (September 29, 2010), Decision of a Delegate of the Registrar of Trade Marks with Reasons (PDF), IP Australia, retrieved November 13, 2010
  41. ↑ "The battle of the uggs". Shoe Fair Online. 25 January 2011. Retrieved 7 September 2011.
  42. ↑ Leonhardt, Megan (26 August 2011). "Deckers, Emu Resolve Ugg Trademark Suit". Law360.com. Retrieved 7 September 2011.
  43. ↑ "Emu and Deckers reach settlement over Ugg name". Just-Style.com. 26 August 2011. Retrieved 7 September 2011.
  44. ↑ http://www.abc.net.au/news/2016-08-28/nick-xenophon-calls-for-legislation-to-protect-ugg-boots-/7792096
  45. ↑ Cronin, Emily. "The story of Ugg". The Daily Telegraph. January 30, 2011.
  46. ↑ "Huge haul of fake clothes seized in London". BBC News. March 19, 2009. Retrieved August 25, 2010.
  47. ↑ Davis, Shabria (January 29, 2010). "Seven are arrested for alleged sale of counterfeit merchandise at Cowtown in Pilesgrove". NJ.com. Retrieved August 25, 2010.
  48. ↑ Administrative Penalty Decision: Chen Gong Shang An Zi (Chengjiang Township A.I.C. Case) No. (2010) 00005, Administration for Industry & Commerce of Jiangyin City, Wuxi Municipality, January 6, 2010
  49. ↑ Clifford, Stephanie. "Economic Indicator: Even Cheaper Knockoffs." The New York Times, July 31, 2010.
  50. ↑ "New Counterfeit Gambit: Knock Off Cheaper Brands". Brandchannel.com. Retrieved June 3, 2013.
  51. ↑ Fink, Karl V.; Johnson, Carolyn M.; Miranda, David P. (March 9, 2004), UGG Holdings, Inc. and Deckers Outdoor Corporation v. Geoff Sharpe d/b/a Australian Aura & DigiCommander Corp.-Ph. 1300 76 3888 a/k/a Domain Registration, National Arbitration Forum, retrieved August 25, 2010
  52. ↑ Yachnin, Ralph (December 20, 2004), Deckers Outdoor Corporation v. Bills Distribution, National Arbitration Forum, retrieved August 25, 2010
  53. ↑ Johnson, Carolyn M.; Tatham, David H.; Fink, Karl V. (February 4, 2004), UGG Holdings, Inc. and Deckers Outdoor Corporation v. Paul Barclay and Barclay Holdings, Inc., National Arbitration Forum, retrieved August 25, 2010
  54. ↑ Fink, Karl V.; Johnson, Carolyn M.; Miranda, David P. (February 5, 2004), UGG Holdings, Inc. and Deckers Outdoor Corporation v. Paul Barclay d/b/a Australian Made Goods, National Arbitration Forum, retrieved August 25, 2010
  55. ↑ Franklin, Sandra (November 8, 2004), UGG Holdings, Inc. v. Constantinos Roussos, National Arbitration Forum, retrieved August 25, 2010
  56. ↑ Johnson, Carolyn M.; McCotter, Jr., Charles K.; Rindforth, P-E H Petter (December 8, 2004), UGG Holdings, Inc. v. WebQuest.com, Inc., National Arbitration Forum, retrieved August 25, 2010
  57. ↑ The Truth About Ugg Boots: History, Controversy & Who Wears Them Whygo Australia August 5, 2010
  58. ↑ "Pamela Anderson Learns Ugg Boots Made From Sheepskin, Speaks Out Against Them". Fox News. February 28, 2007. Retrieved May 14, 2010.
  59. ↑ "PAWS takes aim at Ugg boots". Daily Princetonian. February 25, 2008. archived link at web.archive.org
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