RE:Canada Goose Inc.: At a Retail Crossroads
Canada Goose Inc, a market leader in the luxury sport jacket industry, is renowned for its style and fashion during the winter season and is featured in over 150 independently owned retailers and more recently, in the Athletic Legends Sportswear. In addition to being sold online by two authorized dealers, Canada Goose products have also been placed in a number of countries and have had outstanding results in the European market. It had always been a successful niche brand and now under the leadership of Dani Reiss, is poised for expansion.
With two distribution offers by very prominent high-end national chains, Asmuns Place, a leading fashion specialty store for both men and women, and Levine’s Menswear known for professional service and high-quality men’s fashion, an excellent opportunity presents itself for Canada Goose to expand. However, Reiss has to decide whether these offers are aligned with his other objective of maintaining the premium brand image which has been built over the years. Partnering with these national chains has caused some concern for Westbrook’s Downtown, and the other independently owned retailers as they fear they will not be able to compete with these large national chains if they chose to heavily discount any of Canada Goose products.
Although there are many companies in the premium jacket market, The North Face, an American outerwear company, was Canada Goose’s main competitor.
In shifting the focus from small independent distributors to large national chains that would stock the products predominantly in the largest Canadian cities, Reiss faces three challenges. Firstly, although distributing through national chains would result in increased sales and growth for Canada Goose, therein lies the risk of diluting the premium brand image that has been developed and successfully maintained over the years. Currently demand...