User-generated content (UGC) has a dual character and is central to a digital economy. Individuals participate by creating free content for the company, while simultaneously being a cost-effective method of advertising for the brand.
Vans Global Custom Culture Contest
Vans hosted a customisation competition where global participants could submit a sneaker design, and stand a chance to win $25,000, have their shoes produced and sold by Vans, as well as tour the Vans design headquarters. On top of that, they would also be able to partner with Vans to donate $100,000 to a charity that further enables creative communities.
With this competition, Vans had the following goals:
“To create a platform that is accessible to everyone […] A barrier to creativity is having access to the tools needed to create something unique, and as a brand it’s our purpose and commitment to provide a range of platforms to empower and enable individuals.”
– April Viktus, Vans Senior Director of Global Brand Marketing
But ultimately who benefits the most?
Vans:
Throughout the competition, Vans received lots of publicity. This publicity painted Vans in a particularly good light, as not only did they offer an appealing opportunity to aspiring creatives, but they also promised rewards which would help kickstart their careers. With this publicity, Vans were likely to have garnered lots of participants, whilst also generating plenty of UGC and free advertising for their brand. Often when a brand is the ‘talk of the town’ in a positive way, product sales are likely to increase exponentially. Therefore, in this period, not only could Vans have minimised costs, but also maximised profit with their positive image. Even after the competition ends, the good publicity is unlikely to fade. Vans would have gained a brand-new limited edition design through free labour, and because of its exclusivity, continue to have a rise in profits. Similarly, because the rewards were so promising for any upcoming creatives, Vans is likely to hold a good name in society for its support in the creative community.
The creators of the UGC:
The competition offered a chance to earn fame and recognition as voting was open to the public. Even if an artist did not win, they may gain newfound customers just by having their work and name present on the voting page. For the winner, having a world-famous brand such as Vans sell your work, is a fantastic way to kickstart any artist’s career. Furthermore, with the visit to the Vans headquarters, they were likely to gain insightful tips and advice on how to eventually run their own business, boosting their career even more.
Consumers:
All consumers really get out of this is a new shoe design. However, if in this period Vans becomes high in demand due to surrounding publicity, then consumers may have the opportunity to sell their own Vans pieces for a profit.
However, there are losses for all parties too — some more than others. Vans itself may lose a big sum of money to this contest due to the prizes, but they are also likely to make it back quickly, as the good publicity surrounding its brand is one that will have a lasting effect. When people think of Vans, they will remember how they contributed to the creative community. Whereas, the winner, will likely only be remembered until Vans stops selling their design. As for consumers, the rise in popularity of Vans in this period may lead to more competition in consumption. Prices may rise, and limited quantities may pose a struggle to secure this limited-edition pair of shoes.
At the end of the day, people will always remember the cool opportunity that Vans presented, but not likely the artist that won, or the creatives they helped along the way. Even if loyal customers are unable to secure their shoes due to an increase in popularity, Vans will still be making a profit. Thus, in more aspects than one, UGC is by far one of the most cost-effective methods for a brand to adopt, as they often win on a larger scale. But even so, UGC still proves to be a win-win situation for everyone, even if it’s only for a limited time.