The history of Ugg Shoes-Australia correlates with the long tradition of the Australian people depending on heavy duty sheepskin boots for their farming and rugged outdoor activities. For 200 years, Australians referred to their 100% merino sheepskin boots as "ugs", short for "ugly." By the early 1970's, several sheepskin boot manufacturing plants had been constructed around the Australian city of Perth.
After realizing the popularity of Uggs within the California surfing community, he decided to develop and market the sheepskin footwear. His conceptual idea came to fruition in 1978. Mr. Smith obtained a trademark for the term Ugg-and it is believed that he also obtained variations on the spelling-such as Ug and Ugh.
In 1995, Mr. Smith sold all rights of Ugg Holding to a Californian company by the name of Deckers Outdoor Corporation. Upon the purchase, Deckers acquired the Ugg trademark name for 24 countries and began utilizing the name of Ugg-Australia. However, the production of the sheepskin boots was transferred to China in a move to lower production costs.
Located near this city were popular surfing beaches, where surfers adapted the Ugg boots for year-round use. The insulating properties of fleece kept feet warm in winter, and in summer, it absorbed perspiration. With a cozy feel and form-fitting style, Uggs provided sock-like comfort while walking over rough or slippery terrain. Gradually, Uggs reached from the West Coast to the surfing communities of Australia's East Coast, and then were carried into skiing communities by surfers who enjoyed both sports. When Brian Smith, a native Australian surfer visited the U.S in the late 1970's, he brought Uggs with him.

The boot that could have once been considered dowdy due to its bulk and shape is now viewed as sexy and fashionable. Uggs are no longer just a household name in Australia, but across the globe, and sales have tripled within the last two years. With some styles costing over $444 or 300 Euros a pair, Uggs appeals to those who wish to be known for their financial success and recognition of high quality and workmanship.

Unfortunately, some groups feel that the name Ugg should not be considered a brand name, but simply a generic term representing a boot, just as the words sneaker or trainer refer to an athletic or tennis shoe. This is currently the basis for some debate between Decker and other providers of sheepskin boots. The Australian sheepskin trade claims to have lost $20 million as a result of not being allowed to use the generic word Ugg in their media or internet advertising.

In fact, one group, the Sheepskin Association, enlisted a campaign termed "Save our Aussie icon" in its pursuit of having the trademark cancelled. It may be difficult. Even the Macquarie dictionary, which sets standards for Australian English, uses the trademark that Deckers acquired, in its definition of Ugg. By now, many lovers of Ugg boots equate the term with Ugg Shoes-Australia or Deckers, as well as the warm and comfortable features offered in their production. Unfortunately, similar footwear, knockoff styles and fake Uggs are becoming more numerous.
Within a few years, the Ugg Shoes-Australia product line included a couple of boot styles and four models of slippers, as well as a few casual shoes. The concurrent marketing and advertising campaigns undertaken by Deckers positioned Ugg footwear as luxury items, and, as such, international celebrities were soon seen in them. When the rich and famous began donning Ugg sheepskin boots, worldwide sales were ignited. Nordstrom became a supplier for Ugg Shoes-Australia, supported by high-end fashion magazines. In 2000, Ugg's Ultra boots were sent to television talk show host Oprah Winfrey, who purchased 350 pairs to for employees. She later focused shows around the Ugg Classic and Uptown boots, and her efforts and endorsements brought introduced the Ugg name to Middle America. Thus began an increased sales trend. Ugg Shoes-Australia received an award from Footwear News in 2003 as "Brand of the Year", and became noticeable at designer fashion shows in major cosmopolitan fashion centers.
Yet it seems that the buying public is more concerned about the availability and selection of additional, authentic Ugg-Australia products. Since early 2007, Ugg's share price has increased ten times, and it is estimated that 2008 sales will exceed $45 million. This is based on Ugg-Australia's announcement that it will expand into a line of handbags as well as other leather goods. There is even speculation that Uggs may add a line of warm-weather styles, which will certainly cement Ugg Shoes-Australia's position as one of the leaders in fashion footwear.