UGG and Crocs become financial products

According to StockX statistics, a maroon small bag from the UGG and Telfar joint series is particularly popular on the platform, with more than 3,000 transactions accumulated. The average premium for all co-branded products is as high as 27%.

The shoe brand UGG famous for its snow boots and the niche designer brand Telfar have launched a joint collaboration model that is becoming a hot product in the second-hand market.

According to Fashion Network, UGG’s sales on StockX, a sneaker resale platform, have soared in the past three months. Among them, the sales volume of UGG’s cooperation with Telfar in particular has increased tenfold during this period.

StockX said that in the past 2021, UGG sales were not very high for most of the time, but it did not explode until the fourth quarter.

It is worth noting that the cooperation project between UGG and Telfar happens to be officially released in October 2021. Telfar, which mainly focuses on gender-neutral design, is already a street shoot item of European and American stars. The situation of “hard to find a bag” makes the bag directly nicknamed “Bushwick Birkin” (Bushwick Birkin).

In fact, this is the second cooperation between UGG and Telfar, covering all categories such as footwear, apparel, and accessories. The collection incorporates elements of the TC lettering at the heart of the Telfar brand, especially since the bag sold out shortly after it was launched.

According to StockX statistics, there are currently more than 100 Telfar products on the platform in active resale transactions, and more than 40 products are co-branded with UGG. A maroon small bag from the UGG and Telfar joint series is particularly popular, with more than 3,000 transactions accumulated. The average premium for all co-branded products is as high as 27%.

Excluding the co-branding factor, UGG itself has seen a six-fold increase in its trading volume on StockX in the past three months. The most popular product is UGG’s often out-of-stock classic maroon ankle boots, with an average transaction price of $170 (about 1,081 yuan), a 20% premium.

It is undeniable that UGG has become a popular brand that is often mentioned in the fashion industry with its highly recognizable snow boots. Since the epidemic, the overall sales of UGG featuring wearing comfort has also been increasing.

According to the Deckers Group’s financial report for the third quarter of fiscal year 2022, in the three months ended December 31, 2021, the group’s revenue increased by 10.2% year-on-year to US$1.078 billion (approximately RMB 6.85 billion). The performance of UGG brand increased by 7.9% year-on-year to 950 million US dollars (about 6.04 billion yuan), accounting for nearly 90% of the group’s total revenue.

It is worth noting that in recent years, UGG, which is mainly functional, is constantly strengthening its fashion attributes through marketing methods such as joint cooperation. Its partners include SACAI, KITH, BAPE, and a number of emerging designer brands in Shanghai Fashion Week.

Crocs and Birkenstock, which are also classified as “ugly tide”, are also adopting a similar fashion strategy and have achieved good results during the epidemic.

At present, Crocs and the famous music producer Diplo have cooperated with a limited edition sandal, which is the most active product of the former brand on StockX. So far, the average transaction price of the product is $108 (about 687 yuan), a premium of about 33%.

Through co-branding with Balenciaga, Crocs, who has been favored by fashionistas such as supermodels Heldi Klum and Kendall Jenner, has successfully entered the fashion industry since the epidemic and has won a second outbreak in the public circle. This is also directly reflected in the brand’s market performance.

A survey by the data statistics agency NPD shows that in March 2020, when the new crown epidemic broke out, Crocs was the only brand among the top 30 footwear brands that recorded growth in performance, and it still maintained growth in April. Also in April, Crocs had its highest number of searches on the search engine Google in 15 years.

According to Crocs’ latest 2021 financial report, the company’s revenue reached a record $2.3 billion (approximately RMB 14.6 billion), a year-on-year increase of 66.9% over 2020.

In 2020, when the epidemic hit, Birkenstock launched the high-end line “1774”, with prices starting from £260 (about RMB 2151). Under the “1774” series, Birkenstock launched a joint series with Dior, Valentino, Jil Sander, Rick Owens and other brands.

In April 2021, Birkenstock was officially acquired by L Catterton, a private equity fund under LVMH, at a price of 4 billion euros (about 27.7 billion yuan). According to The Wall Street Journal, citing sources from the group, although Birkentosck experienced obstacles such as factory closures due to the epidemic in 2020, its 2020 performance may be the same as 2019’s 720 million euros (about 5 billion yuan).

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