Ruqayyah Snyder
UGG, the popular brand of sheepskin boots, has had a convoluted history with its name. The term ugg was commonly used in Australia as a generic reference to sheepskin boots, and there are several claims to the origins of the Ugg boot. In 1978, Australian surfer Brian Smith founded UGG in California, trademarking the term UGG and registering the trademark Original UGG Boot UGG Australia in 1985. In 1995, Smith sold UGG Holdings to Deckers Corporation, which began asserting its trademark by sending cease-and-desist letters to Australian manufacturers selling sheepskin boots outside of Australia. In 2016, Deckers rebranded to UGG, dropping Australia from its name, in response to an investigation by the Australian Competition & Consumer Commission, which found that the reference to Australia in its branding was misleading and deceptive as the boots were manufactured in China and Vietnam.
| Characteristics | Values |
|---|---|
| Year of change | 2016 |
| Reason for change | Investigation by the Australian Competition & Consumer Commission |
| Reason for investigation | Complaint that the reference to "Australia" in its branding of sheepskin boots manufactured in China and Vietnam was misleading and deceptive, and therefore in breach of Australia's consumer protection and fair competition laws |
| New brand name | UGG |
| New brand name description | Californian |
| Previous brand name | UGG Australia |
| Previous brand name description | Australian |
| Original UGG company location | Australia |
| Original UGG company founders | Arthur and Faye Springthorpe |
| Original UGG company founding year | 1974 |
| UGG Australia founder | Brian Smith |
| UGG Australia founding year | 1978 |
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What You'll Learn
UGG's Australian heritage
UGG boots are widely understood to have been invented in Australia. They made their first documented appearances on surfers' feet in the 1950s. By the 1970s, they were commonplace across Australia. In 1981, "ug" (with one "g") made its way into the Macquarie Dictionary as a generic term for sheepskin boots. Over the years, they have become an internationally recognised Australian icon.
In the late 1970s, Australian entrepreneur Brian Smith took the style to California and trademarked the name "UGG" in the United States. 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. Later, family friends invested $20,000 in the venture, and the group set up UGG Imports. In 1979, Jensen handed over his share of the company to Smith due to other business commitments.
In 1985, Smith set up UGG Holdings Inc. and registered a US trademark on a ram's head logo with the words "Original UGG Boot UGG Australia". In 1995, Deckers Brands purchased UGG Holdings and registered the UGG Holdings trademarks, including the UGG Australia label.
In 2016, Deckers rebranded to "UGG", instead of "UGG Australia", in response to an investigation by the Australian Competition and Consumer Commission. The investigation found that the reference to "Australia" in the branding of sheepskin boots manufactured in China and Vietnam was misleading and deceptive, and therefore in breach of Australia's consumer protection and fair competition laws. Deckers now refers to the UGG brand as Californian rather than "Australian".
Despite the legal challenges, Australian manufacturers like UGG Since 1974 continue to defend their cultural legitimacy through local production and connection to the product's heritage. UGG Since 1974 is a trademarked Australian company based in Australia, with no connection to any other UGG company. The company continues to handcraft boots in Australia using local materials and labour, maintaining a tradition that predates Deckers' involvement with the product.
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The role of surfer Brian Smith
In 1978, Australian surfer Brian Smith founded UGG in California, alongside Doug Jensen. Smith, who was living in Santa Monica, California, had studied at UCLA's Anderson School of Management. Smith and Jensen initially applied to be the United States distributors for the Western Australian sheepskin boot manufacturer Country Leather. However, they were unhappy with the brand, so Smith trademarked UGG.
Smith's passion for surfing played a significant role in the creation of UGG. He noticed that his surfer friends in California didn't wear sheepskin boots like Australians did after surfing in chilly morning waters. This sparked the idea for the UGG brand. Smith's initial sales trips faced rejection, with shops turning him down as they believed his product wouldn't sell. However, he persevered and sold his boots from the back of his van at Malibu Point Beach.
Smith's connection to the surfing community influenced his advertising strategy. After his initial advertising attempts using models fell flat, he shifted to featuring young professional surfers in his ads, with the boots barely visible. This move resonated with the target audience and helped the brand gain momentum.
Smith's entrepreneurial spirit and tenacity were key to UGG's success. With $500 of startup money, he founded UGG Imports to bring sheepskin footwear to America. After facing initial challenges and stagnant sales, he persevered and adapted his approach. He focused on selling through surf shops and sponsored ads featuring young pro surfers, which led to a significant increase in sales.
In 1995, Smith connected with Deckers Brands, and together they took the UGG brand worldwide. Smith sold the business to Deckers Outdoor Corporation, and UGG has since exceeded $1 billion in international sales. Smith's journey with UGG showcases his resilience, innovation, and unwavering faith in his vision, transforming UGG into a global phenomenon that has redefined comfort and style in footwear.
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The 1995 sale of UGG Holdings to Deckers Corporation
UGG was founded in California in 1978 by Australian surfer Brian Smith and Doug Jensen. Smith and Jensen initially applied to be the United States distributors for the Western Australian sheepskin boot manufacturer Country Leather. However, Smith was unhappy with the brand and decided to trademark UGG. Family friends invested $20,000 in the venture, and the group established UGG Imports, selling 28 pairs of boots in their first season. In 1979, Jensen left the company, and Smith took over his share. Sales grew steadily, and Smith set up UGG Holdings Inc. and registered a US trademark in 1985 for a logo featuring a ram's head and the words "Original UGG Boot UGG Australia".
In August 1995, Deckers Brands purchased UGG Holdings for $14.6 million. Deckers Outdoor Corporation, doing business as Deckers Brands, is a footwear designer and distributor founded in 1973 and based in Goleta, California, United States. The company was renamed Deckers Outdoor Corporation when it went public on the NASDAQ in 1993. After acquiring UGG Holdings, Deckers continued to expand the business, and UGG experienced double-digit sales growth in the late 1990s as it developed into an international brand.
In 1999, Deckers registered UGG Holdings' trademarks, including the UGG Australia label, in Australia. However, their attempts to prevent other traders from using the "UGG" mark in Australia were challenged. In 2006, IP Australia removed the company's "UGH" and "UGH-BOOTS" trademarks due to non-use. The trademark containing "UGG Australia" in stylised text was maintained, but there are other similar trademarks in Australia that include the words "UGG Australia" along with additional graphical elements.
UGG boots gained significant exposure and popularity after being featured on Oprah Winfrey's show in 2003 as part of "Oprah's Favorite Things". This led to a surge in sales, and the company opened its first brick-and-mortar store in New York's SoHo neighbourhood in 2006, followed by its first international store in Japan later that year. UGG has since collaborated with various brands, including Jimmy Choo and Swarovski, and launched its first men's advertising campaign featuring Tom Brady in 2011. In 2016, Deckers rebranded from "UGG Australia" to simply "UGG" due to an investigation by the Australian Competition & Consumer Commission, which found that the reference to "Australia" in the branding was misleading and deceptive, violating Australian consumer protection and fair competition laws. Deckers now refers to the UGG brand as "Californian".
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The removal of 'Australia' from the UGG logo
The UGG logo once included the word "Australia" but was removed in 2016. The removal came about due to an investigation by the Australian Competition & Consumer Commission, which found that the reference to "Australia" in the branding of sheepskin boots manufactured in China and Vietnam was misleading and deceptive, breaching Australia's consumer protection and fair competition laws.
The history of the UGG boot is convoluted and often misunderstood, with various claims to its origins. It is clear, however, that the boot's history is undoubtedly Australian. There are recorded accounts of sheepskin boots being used by Australian shepherds as early as the late 1800s, and these boots became common in rural Australia during the 1920s. They were worn by sheep shearers as they were resistant to the lanolin coming off the sheep's wool, which would otherwise rot their ordinary boots. During the 1950s and 1960s, ugg sheepskin boots were favoured by surfers to keep their feet warm before and after surfing.
In the 1970s, the popularity of ugg boots spread globally, with Australian manufacturers partnering with international distributors. UGG Since 1974, founded by Arthur and Faye Springthorpe, is a trademarked Australian company that began during this time and has no connection with any other UGG company.
In 1978, Australian surfer Brian Smith founded UGG in California. Unhappy with the brand he was working with, Smith trademarked UGG and set up UGG Imports. In 1985, he registered a US trademark for the "Original UGG Boot UGG Australia" logo. In 1995, Smith sold UGG Holdings to Deckers Corporation, which ceased sourcing UGGs from Australian manufacturers and moved production overseas. This caused confusion among consumers, who were torn between the "Original UGG" brand and the Australian-made generic product.
In 2016, Deckers rebranded to "UGG", removing "Australia" from the logo and referring to the brand as Californian rather than "Australian". This decision was made to address the investigation findings and comply with Australian law.
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The Australian Competition & Consumer Commission investigation
The Australian Competition & Consumer Commission (ACCC) is the chief competition regulator of the Government of Australia. It was established in 1995 and is located within the Department of the Treasury. The ACCC's mandate is to protect consumer rights and business rights and obligations, to perform industry regulation and price monitoring, and to prevent illegal anti-competitive behaviour.
In 2016, the ACCC investigated Deckers, the company that owns UGG, because of a complaint that the reference to "Australia" in its branding was misleading and deceptive. UGG boots were manufactured in China and Vietnam, and the ACCC found that this was in breach of Australia's consumer protection and fair competition laws.
As a result of the investigation, Deckers rebranded from "UGG Australia" to "UGG" in 2016. The company now refers to the UGG brand as "Californian" rather than "Australian".
The ACCC has taken action against other companies involved in the importation and sale of UGG boots in Australia for similar reasons. In 2006, the ACCC accepted court-enforceable undertakings from two such companies, Rogue Footwear Pty Ltd and Pegasus Investments & Holdings Pty Ltd, regarding false claims about the wool lining of their boots. The ACCC considered that these companies had likely breached the Trade Practices Act 1974 by making false or misleading representations about the standard or quality of their products.
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Frequently asked questions
UGG Australia changed to UGG in 2016. This was in response to an investigation by the Australian Competition & Consumer Commission, which found that the reference to "Australia" in its branding was misleading and deceptive.
The UGG boots were manufactured in China and Vietnam, so referencing Australia in the branding was considered a breach of Australia's consumer protection and fair competition laws.
The term "UGG" was trademarked in America by Australian surfer Brian Smith and Doug Jensen in 1978. Smith later bought out Jensen and, in 1985, registered the trademark "Original UGG Boot UGG Australia". In 1995, Smith sold UGG Holdings to Deckers Corporation, which became the sole owner of the name UGG.
The UGG boot has a long history in Australia, with recorded accounts of sheepskin boots being used by Australian shepherds as early as the late 1800s. The boots became popular with Australian surfers in the 1950s and 1960s, and advertisements for Australian-made UGGs appeared in Californian surfing magazines in the 1970s. The UGG logo once included Australia, but this was removed for simplicity of design.
