Aussie brands get off on the right boot in US market

No one could have guessed that the humble Aussie ugg boot would one day become the model for all local companies trying to push their brands overseas.
But according to Keith Reinhard, the American chairman of global advertising giant DDB Worldwide, the fluffy footwear embodies all of what is loved and envied about Australians overseas.
In Melbourne last week to address local advertisers and business leaders, Mr Reinhard said it was Australians' perceived "naturalness, laid-back lifestyle and certain irreverence" that Americans were most drawn to and, more importantly, could be sold on.
"I think it's probably a great time for an Australian brand to enter our market," he said.
"Americans are a little more `buttoned-up', a little less natural in some ways and I think there's now a mood in US culture for some lightness."
Though Mr Reinhard understands that not all Australians wrestle crocodiles and ride kangaroos to work, he said local businesses needed to be able to modify their branding to succeed overseas.
"It's a pure marketing decision. We're not saying the brand has to be an accurate reflection of the way Australia really is, we're saying these are the qualities associated with Australia that are appealing to Americans," he said.
"My understanding is that ugg boots are not at all a fashion item here, that you guys wouldn't even go outside in them. But the Australian qualities caught on and it became very, very hot in the US."
Mr Reinhard said it was little wonder that the company that first got a whiff of the potential ugg boot pandemonium was US group Deckers Outdoor Corp.
Having bought the Ugg Australia company from local surfer Brian Smith in 1995 and then the naming rights to the brand, Deckers says it sold $US32 million ($A42 million) of ugg boots in 2003 and credits ugg-mania with helping to boost its shares from $US4.21 a year ago to at $US25.52 now. Though a craze like the ugg boot would be tough to replicate, Mr Reinhard said virtually all other popular Australian brands - "except Vegemite" - could make it in the US.
His advice to those wanting to crack the US market: "Firstly, the brand should be well established here before you try it out elsewhere. Then consider those things that Americans really like about Australians and figure out how they apply to your brand."
Mr Reinhard said Australians also needed to be aware of the differences in marketing culture between the two countries and which channels the brand would work in.
"I would think you'd want to work with a partner who knows the United States, who understands the consumer, the distribution channels and what media to advertise through.
"You need to know how to get your product into Walmart."