Brian Smith | The Good, the Bad and the ‘UGGly’

Surfing can teach you a lot about business. UGG founder Brian Smith learned that in both, you have to keep pushing towards the next opportunity — the next wave — or you’ll go under.

Today, UGG is well-known around the world for its sheepskin boots and other products. But Brian weathered many storms to keep the company afloat.

The first obstacle was his own education. After 10 years of studying to be a chartered accountant in Australia, on the day of his graduation, Brian quit. “I never liked accounting,” he says.

Looking for a new direction, Brian set his sights on California. In his mind, it was the source of all things trendy. He took his surfboard to Malibu, hoping to find the next Levi’s.

Instead, he found more surfers. And the product they were interested in wasn’t from California: It was Brian’s sheepskin boots, which kept him warm in the chilly Pacific wind.

Sheepskin boots were already popular in Australia, but you couldn’t get them anywhere in the U.S. 

Brian started testing the waters, visiting surf shops to gauge interest. Based on the retailers’ enthusiasm, he ordered 500 pairs — only to get shot down when the product arrived.

“Our total sales for that first season of UGG was 28 pairs,” Brian remembers.

Down but not out, Brian loaded up his van and hit the beaches. The boots eventually became a hot ticket for surfers. But it wasn’t smooth sailing from there.

Over the next few years, Brian lost ownership of the company and faced competitors who ripped off his brand and stole his manufacturer, leaving thousands of orders unfilled.

He also became a confident salesman, making friends with retailers around the country. Their loyalty ultimately helped save the company.

Next, Brian set his sights on the mainstream market. With a little help from Pamela Anderson and Oprah Winfrey, UGG went from surfer gear to essential winter wear worldwide.

Brian eventually bought back the company he’d started. In 1995, having ridden through so many low points to reach the crest, he sold UGG to outdoor brand Deckers.

“You have to pivot and keep moving forward because that's the only way that any entrepreneur’s going to get successful. Manage it through the crazy toddler stage, and then hang on for dear life when it hits the teenage phase,” he says.
 

🧑 Name: Brian Smith

⚙️ What he does: Founder of UGG, entrepreneur, speaker and author of “Birth of a Brand.”

💎 Words of wisdom: “It doesn't matter what situation hits you in life, in business or personally. If you can switch around to a positive way of thinking, it's amazing how the difficulties and the disappointments will fade away very quickly, and you'll find a new way of doing things.”

🔍 Where to find him: Facebook | Twitter | Instagram | Website
 

💡 California scheming: Brian abandoned his plan to be a chartered accountant and left Perth, Australia, for California, looking for the next big trend.

💡 Valuable booty: Hanging out with surfers in Malibu, Brian realized they all wanted something he already had: his cozy sheepskin boots, known as uggs in Australia.

💡 Cold feet: Despite retailers’ early enthusiasm, Brian spent four years struggling to sell his UGG boots. An ad campaign finally got the word out and they became popular with surfers.

💡 Sale away: Planning to scale, Brian brought in three partners — and accidentally signed away ownership of the business. Undeterred, he hit the road as the company’s top salesman.

💡 Wiped out: When UGG’s new owner died suddenly, Brian returned to lead the company. Eventually he was able to buy UGG back, which again left him broke.

💡 Bootstrapping: Orders were flying in, but the manufacturer wouldn’t deliver without guarantee of payment. Brian searched for an investor while battling copycats.

💡 Thank you, Oprah: Having made UGG the brand for surfers, Brian decided to take it mainstream. His PR campaign was a hit — with a little celebrity help.

💡 End of the road: Realizing he’d taken UGG as far as he could with his resources, Brian sold the company to a big outdoor brand who could scale it up.
 

“Every entrepreneur who has a big idea thinks they’re going to be an instant millionaire.”

“You never advertise the product. You always advertise the feeling or the emotion or the benefit the user's going to get.”

“I could have given up easily, but I decided to keep doing what I was doing, trying to get better at it. And the success finally came.”

“In this world of instant gratification — instant purchases — it's so easy to lose track of your customers. But the critical thing is to be able to reach out through that noise. You must figure out how to get a community going with your customers.”

“In the three or four years when we had plenty of money, I was traveling and talking with retailers from New York City to Denver to Idaho to North Dakota. These people all became my friends and they really came through for me when the chips were down.”