UGG Australia is an American footwear company. It is a part of the Decker’s Outdoor Corporation. UGG is a high quality known brand in the United States as well as over one hundred and thirty other countries for footwear. Although, they do sell other products UGG is mainly known for its boots and slippers, as well as bags, clothing, outerwear, home goods and other products. UGG Australia is widely known due to their original sheepskin boots. UGGs original sheepskin boot is their “Classic collection which is the traditional Australian type. These boots are unisex meaning they are made for not only women but also men.
UGG brand boots have been identified as a fashion trend for men and women ever since the early two thousands and continues to be today. UGGs are made of real sheepskin. This is a reason why there sales are higher during the winter seasons. They are comfortable and one can wear them in the winter without being cold. The demand for UGGs are high due to their ascetic and unique style. Once UGGs hit the scene the company took the boot market by storm. Ever since, the early two thousands UGG Australia has been the top brand compared to other competitors such as Bear Claw and Minnetonka. UGGs DeMeo eep ones feet warm in the winter months but not sweaty as some may think.
The UGG boot is sought out also due to the fact that socks aren’t needed when one is wearing them. The demand for UGGs seems to rise when the winter months are approaching due to their effectiveness in the cold. The UGG Austria industry’s supply and demand falls under the micro economic part of economics. Micro economics is the study of the economic behavior of an industry unlike macroeconomics, which is focused on the economy as a whole. Supply and demand is one of the most essential parts of economics. It is also the pillar the economy.
Demand is a quantity of a product that is sought out buyers, in this case it would be UGG boots. The quantity demanded is the number of items that the customers are willing to purchase. The afflation between price and quantity demanded is referred to as the demand relationship. The amount a market can deal is the supply end of the supply and demand relationship. The quantity supplied is the number of a particular item that producers are inclined to supply due to it being set a certain price. The association between the amount something costs and the amount of a product such as UGG boots supplied to the market.
This correlation is referred to as the supply relationship. The cost of something is a mirror of supply and demand, which makes it easier to understand the topic at hand. As one can see the supply lowers for UGGs around the winter holiday due to the demand for a warm stylish winter boot. In economics, there is another cost that the costumer must pay when purchasing an item besides the price of a certain product or service. This particular cost in microeconomics is known DeMeo 3 as opportunity cost. Opportunity cost is the alternative option that must be forgone in order to be able to go with a particular choice.
The opportunity cost of buying UGG boots or other UGG merchandise is that one cannot purchase another brand since one is using their money on the UGG brand. The opportunity cost of buying UGGs could also be looked at as instead of purchasing the product one could have saved money. On the other hand, UGG Australia has a large variety of winter boots and the quality is a priority. Quality is extremely significant to the UGG Australia industry due to their high end materials, which are real sheepskin with fleece on the inside and with a solid tanned outer surface. The quality of product is significant when attempting to keep clients satisfied.
If the quality of a product is high, in this case UGG would be the product of quality. Customers continue to purchase UGG Australia products due to their high quality brand. This creates a thing called customer loyalty, which creates a larger cliental bringing in more profit to the company. Customer loyalty is significant when attempting to build a good reputation for an industry. If a company does not keep their product or services at high quality it increases costs drastically. This is why competitors of UGG Australia fall short when competing in the winter boot market.
In conclusion, the supply of UGG boots in the summer is greater because the demand for the product is lessened due to seasonal changes. The supply of UGG boots in the winter is less than the summer due to the increase of need for the warm of the product. Supply and demand will always have an inverse relationship. Whenever one of them is increasing the other is decreasing. The quality ties in with the price of UGG boots, which in return is significant to earning profit DeMeo 4 within the company. These are all important factors of UGG boots and how seasons affect their revenue.