Ep.180 I Deciding to Scale and Sell: UGG’s Rise, Near Collapse, and Ultimate Exit with Brian Smith
Building a brand is about more than having a great product—it’s about getting people to believe in it.
Brian Smith, founder of UGG, knows this firsthand. What started as a niche surf product exploded into a globalphenomenon, but the real challenges came with scaling, staying ahead of competitors, and making the tough call to sell.
In this episode, Brian shares the behind-the-scenes realities of growing a brand, navigating financial hurdles, and adapting to industry shifts. He unpacks the unexpected marketing move that changed everything, how he handled rapid expansion, and why the Oprah effect took UGG to an entirely new level.
KEY TOPICS
Why fast-growing companies constantly need more money and how to prepare for it.
How to build customer loyalty so strong that people market your product for you.
The key decision that helped UGG stay ahead of copycats.
How Brian Smith knew it was time to sell UGG.
CHAPTERS
00:00 – Intro: Defeating Bad Decision-Making in Life & Business
06:15 – Brian Smith Returns: The Founder of UGG07:50 – How UGG Started: From Accountant to Entrepreneur10:12 – The First Sales Strategy That Completely Flopped12:31 – Struggles of Selling a New Product14:50 – The Sales Tactic That Changed Everything17:16 – Building Customer Loyalty19:12 – How Branding Decisions Can Make or Break a Business21:32 – Authentic Marketing: Why It Works23:48 – Expanding Beyond Surf Shops: Finding New Markets26:10 – How UGG Became a Status Symbol28:34 – What Most Business Owners Get Wrong About Growth30:55 – Why Scaling Almost Destroyed UGG33:19 – The Reality of Raising Capital 35:45 – Managing Investors & The Cost of Business Growth38:08 – Learning from Richard Branson: The Endless Need for Capital40:36 – Preparing to Sell UGG: The Decision to Exit42:59 – Negotiating the Sale: Finding the Right Buyer45:18 – Toxic Business Partners 47:45 – Corporate Takeover: What Happens After You Sell50:02 – The New Broom Syndrome: When a Brand Loses Its Identity52:28 – The Oprah Effect: UGG’s Biggest Growth Moment53:27 – Brian’s Top Decision-Making Tip for Business Owners55:59 – Where to Connect with Brian Smith56:13 – Key Takeaways57:53 – Message from the Producer
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CONNECT WITH BRIAN SMITH
Website: https://briansmithspeaker.com/
“The Birth of a Brand” (Brian’s book): https://www.amazon.com/Birth-Brand-Brian-Smith/dp/1582705356/ref=sr_1_1?ie=UTF8&qid=1461080262&sr=8-1&keywords=birth+of+a+brand
LinkedIn: https://www.linkedin.com/in/briansmithuggfounder/
Instagram: @briansmithugg
Facebook: https://www.facebook.com/BrianSmithUGGFounder/
Graduating in 1978 as a Chartered Accountant in Australia, Brian came to California looking for the next big opportunity to bring back to Australia.
While studying at the UCLA Graduate School ofManagement he observed that there was no sheepskin footwear in the US.
With only $500 in capital, he imported bootsamples and built the UGG Australia brand into a multi-million-dollar international enterprise. He sold in 1995, and the brand has continued to grow to exceed a billion dollars in annual sales.