The Surprisingly Simple Pivot Behind UGG’s Rise From Joke to Icon

I have spent WAY more than I ever wanted on UGG boots and slippers - especialy for my daughters (especially, but not exclusively 😂!) But learning tonight’s tale makes it a little more palatable - and we have a great free tool below that can help you make sure your next product is something your people resonate with (a free branding kit from Canva)

In 1978, an Australian surfer named Brian Smith flew to Southern California with a suitcase full of - let’s face it - some fairly ugly sheepskin boots.

Back home, “UGG” boots were what farmers wore to get warm after cold mornings. But here in laid-back SoCal, most people thought they looked just, well, odd.

Shopkeepers laughed. Reatilers mostly said no. As did department stores. And so did buyers.

That first season? Smith sold just 28 pairs.

That is not a typo.

The Simple Pivot

Discouraged but not dejected, Smith had an insight one day.

He knew that surfers like him had a problem - the sand and their feet were awfually cold after a morning of surfing.

What, he wondered, if he ‘re-branded’ UGGS as a cool, keep your toes cozy, post-surf bootie? What if he leaned into the Southern California surf culture and only sold them exclusively (at least for a while) in surf shops in Huntington and Newport Beaches, in San Diego and San Clemente?

With littl to lose, Brian Smith decided to stop trying to sell “boots” and started instead to sell a feeling - ‘cozy warm feet after cold Pacific plunge.’

And so he put the product where the culture lived: On surf racks and sandy floors, in surf shops and tourist spots.

Not in musty malls and dreary department stores.

Hang Ten!

Bingo.

Smith found the sweet spot. Adoption grew slowly at first inside the surf subculture, and then word leaked out.

And then word exploded.

By the mid 1980s, UGG had made it to the covers of magazines and could be found on celebrity feet as they ambled down Rodeo Boulevard.

Rebranded, UGGS had become an almost iconic symbol of the relaxed SoCal life.

The Big Sale

Strike while the oron is hot, they say, and so Smith did. Deckers acquired the UGG brand in 1995 for some $15 million.

And then it really happened.

When Oprah featured UGGs on her Favorite Things list in 2003, demand exploded, and a once-awkward niche product turned fully mainstream.

UGG is now a global brand with apparel, home goods, and more. The funny part is that the product never really changed.

The story did. The brand did.

The entrepreneur did.

🛠️ Free Tool of the Week

Canva Brand Kit – canva.com/brand

If you pivot, your visuals need to pivot too. Canva’s free Brand Kit lets you instantly create consistent logos, fonts, and color palettes for your new positioning without hiring a designer.

The Takeaway

When something good is not landing, do not necssarily default to reinvention. Try reframing instead.

Ask where your product already fits naturally, who loves it most, why, and what specific moment of their day it owns. Nail that micro-market, then market to that story.

How 433 Investors Unlocked 400X Return Potential

Institutional investors back startups to unlock outsized returns. Regular investors have to wait. But not anymore. Thanks to regulatory updates, some companies are doing things differently.

Take Revolut. In 2016, 433 regular people invested an average of $2,730. Today? They got a 400X buyout offer from the company, as Revolut’s valuation increased 89,900% in the same timeframe.

No wonder 10K+ everyday people are taking the chance on Pacaso.

Founded by a former Zillow exec, Pacaso’s co-ownership tech reshapes the $1.3T vacation home market. They’ve earned $110M+ in gross profit to date, including 41% YoY growth in 2024 alone. They even reserved the Nasdaq ticker PCSO.

The same institutional investors behind Uber, Venmo, and eBay backed Pacaso. And you can join them. But not for long. Pacaso’s investment opportunity ends September 18.

Invest While You Still Can

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Steal This Strategy!

📖Book – The Lean Startup
Short loops, testable hypotheses, and pivots that stick. Amazon

🎥 Video – The Birth of a Brand: Brian Smith on building UGG
Founder interview on the early grind and positioning choices. YouTube

🌐 Website – Official UGG origin story
Brand timeline and early surf-culture roots. UGG

🎙️ Podcast – The Story of UGG with Brian Smith
Apple Podcasts • Spotify Apple Podcasts+1

About Steve

Steve Strauss is the best-selling author of The Small Business Bible (and 17 other books), Inc.’s small business columnist, a lawyer (non-practicing), and an entrepreneur. He sold his last venture, TheSelfEmployed.com to Mark Cuban & Zen Business. Need a ghostwriter or a newsletter for your business? Contact Steve!