Canada Goose company is known not only in Canada, but in many countries around the globe. It is not an easy task to make and sell clothing produced in America because of strong foreign competition, but Canada Goose company does it successfully for many years.
According to statista.com data now Canada Goose’s revenue is growing rapidly, wholesale revenue grew from 288 mil. CAD in 2017 to 336 in 2018 and direct sales increased from 115 million Canadian dollars to 225.
Why people are lining up to buy those fancy jackets, parkas and other products? We’ll try to answer this question.
Company’s history started in 1950s, when an entrepreneur Sam Tick immigrates to Canada. He created Metro Sportswear Ltd. in Toronto, which specializes in woolen vests, raincoats and snowmobile suits. After 20 years his son establishes the label Snow Goose, which later becomes Canada Goose. They wanted to make jackets for coldest places on earth. After that Reiss family continue company’s development.
Over the last 21 years, Canada Goose has grown from one small factory in Toronto to seven facilities across Canada with products shipped to 38 countries around the world.winnipegsun.com
In 2018 they opened 7th factory in Winnipeg which created more that 700 new jobs, for over 55 years all production facilities were located in Canada.
Huge European and American brands moved their production to China and other countries long time ago, but Canada Goose proudly makes everything in Canada. It is not an easy decision, minimum wage in Ontario is $14/hour, for such high labor demanding production those are major expenses. Of course if would be much cheaper to open factories elsewhere, this would reduce prime cost and make products more competitive, but the company believes that “Made In Canada” on mark on any product wins against the opportunity of cost reduction.
Canada Goose is not cheap, their parkas cost $900 and more, but this doesn’t scare customers. Canadian winter is long and tough, in some places temperature drops to -30 and below, you need to be sure you well protected against such hard conditions. The thing about winter jackets is that people usually wear one for a long time, 3-5 years is a minimum, often people wear one jacket for 10 and more years, so when you choosing one, you might as well spend good money on it, winter jacket is an expensive product.
Sure you can get a nice looking jacket for $100 or even cheaper during the sale, this jacket might be quite warm and of a decent quality, but here we come to another reason why people would pay 10 times that for Canada Goose brand. Brand is the answer.
In a grocery store you see a lineup to Canadians apples and vegetables, close to it you can see much cheaper apples from The U.S. or Mexico, but people still go for “Made In Canada”. Canadian products are popular not only among Canadians, but among new immigrants as well.
When it comes to food this behavior can be explained easily, if something grows close, probably it is fresh and “natural”, so what’s up with the jacket? Germans make cars, Russians make vodka, French and Italians make wine, Ukraine makes grain and Americans make iPhones in China 🙂
Canada has a problem when it comes to international fame and stereotypes. Canada is just not very well knows in the world. Many people in different countries know nothing about Canada and they don’t read much about Canada in news. I know that because in MapleDude.Ca i am having hard time to find new content about Canada and its culture. With that in mind people know one thing about Canada for sure – it is cold out there! So Canadians must have a good winter clothing, there you go.
When people hear about winter jackets made in Canada they want to buy one, because Canadians must know what they are doing.
Another thing about Canada Goose is that those jackets are just cool to some people only because they are expensive. They are expensive in Canada, you can guess how much they cost in Europe and Asia with additional delivery costs (although Asians with their weather don’t really need warm parkas).
Why Canada Goose Jackets are so expensive? Reducing its price might have a negative effect on sales because demand for fancy and luxury goods is inelastic.
You can see that those jackets are very popular in Korean, Chinese and Arabic Canadian communities, you see a lot of people wearing them. Sometimes it is even funny because you know that some of those people are not very rich, yet they willing to spend a lot of money on it. Partly this is because of the feeling of belonging, they are in Canada now, they want to be Canadians and buying Canadian is a good way to show it.
Surly if company decided to move production to an Asian country those new Canadian immigrants wouldn’t be that interested in buying.
One more thing which makes Canada Goose popular is its quality.
Canada Goose products are good, it is hard to say if it worth the price, but by watching one of many videos from their production facility you can see how Canadians making those jackets and be sure that quality is high.
Canada Goose is not alone, there are other Canadian products, companies and brands, for example: A&W, Tim Hortons, Second Cup, Minute Maid juices, Cascade, Liberté yogurt. Competition is tough because no country in G7 trades like Canada, but Canadians managed to save some production and industries at home, some of which are not only surviving, they are growing. Canada Goose is a great example of such company with proud “Made in Canada” mark.