Market success boots the bugbears away

In addition to lawsuits, Deckers has taken action against more than 23,000 sites and has had 19,000 links removed from search engines.

"This is not a problem that is limited just to the Ugg brand, but also other US and European luxury brands," Worley says.

But Deckers, founded in 1973, has other problems to contend with. One of these is how to expand its products by competing with many other well-known brands with their spring and summer series, says Ren Guoqiang, a partner of Roland Berger Strategy Consultants, who specializes in consumer goods.

Chinese consumers' recognition of Ugg seems to be limited to the traditional classic sheepskin boots, Ren says.

Women's boots are also products of the Ugg brand. [Photo/China Daily]

"It was a fashion brand three to four years ago when it began to be popular following the trend among Western stars. However, when the fashion faded and people were just buying them for winter warmth, a problem began to emerge."

By setting up a subsidiary, the company is showing its determination to gain overall control of its finance and marketing in the Chinese market, Ren says.

Two of Deckers' other problems are how to educate people that the brand is more than just the classic boot and how to define fashion for the brand.

Some suggest that the company's dependence on Ugg is no bad thing, and Ren says building a flagship brand and gaining some experience first is what most multi-brand companies aim to do.

"The key problem is that it has to prove that Ugg is not transitory, but an evergreen tree with many other nice goods. After that, the company can pay more attention to other brands."

Ren says the increasing willingness of Chinese consumers to spend big means they are willing to buy authentic overseas brands.

And Ugg, priced at between $200 and $250 and targeted at urban, fashion-conscious men and women from 25 to 35, may seem like an affordable option for those attracted to foreign logos.

"We don't consider ourselves a luxury brand in the same way you might look at Gucci or Prada," Worley says. "We prefer the term affordable luxury. But we are about comfort and stylishness."

In the new collection, one of Deckers' main products, blue sheepskin boots covered with blue glitter, has a more urban feel than boots in previous collections. That can be put down to the city influence, but it nevertheless has many familiar Ugg traits and is easily recognizable.

Together with the new men's collection, they signify the company's efforts to impress customers that the brand is a fashion leader.

"We know that the awareness of our brand in China is very high," Worley says, "but in the market we still have to provide new styles, every-season products, and to move consumers beyond their perspective of Ugg as just the iconic boot."

In the company's efforts to achieve that aim, the brand now puts out a spring collection every year. It has also developed an Italian-made collection, more luxurious and upmarket, for men and women.

In addition, Worley sees big growth opportunities for the men's product.

"The brand really began as a men's brand in California, but over the years the classic boot really took off in the women's side of the business. Men want the same kind of luxurious product - that is, comfort with premium style."

yaojing@chinadaily.com.cn