Analysis of Canadian Goose Holdings Inc. (Term Paper Sample)
Canadian Goose Holdings Inc. is the most preferred luxury outerwear maker in the country. The company sells various products; parkas, gloves, jackets, hats, vests, shells, and various other winter clothing. Canada Goose sells its products in retail, wholesale, or directly to the consumers. The price of apparel ranges between $295 and $1,695 in all stores and e-commerce platforms across the world. The Canadian company relies on word-of-mouth recommendations as a marketing strategy. Canadian Goose has continued to be successful over the last 60 years it has been in operation. In 2019, the company made sales of $800 million and its net income was $140 million.source..
Canadian Goose Holdings Inc. is the most preferred luxury outerwear maker in the country. The company sells various products; parkas, gloves, jackets, hats, vests, shells, and various other winter clothing. Canada Goose sells its products in retail, wholesale, or directly to the consumers. The price of apparel ranges between $295 and $1,695 in all stores and e-commerce platforms across the world. The Canadian company relies on word-of-mouth recommendations as a marketing strategy. Canadian Goose has continued to be successful over the last 60 years it has been in operation. In 2019, the company made sales of $800 million and its net income was $140 million. The Outer cloth maker is confident that it has conquered the domestic market, and wants to expand into a foreign market. China is an attractive enough market for Canada Goose. The Chinese economy has been growing significantly over the last three decades. The country’s 1.3 billion people is a huge market that has a middle class that is willing to spend more money on luxury. The young Chinese consumers desire products that are light in weight, good design, and good quality and are willing to spend to get such kind of clothing. As a result, the young people are fuelling China’s demand for luxury products. Moreover, the Chinese government has made it easier for business to invest in the country. Some of the policies used are the intellectual rights protection, which is important for Canada Goose so that its products are not counterfeited. Moreover, there is the Foreign Investment Promotion, and Protection Agreement (FIPA) between Canada and China, which guarantees that investments in either of the two countries would be protected. Understanding the culture and behavior of the consumers in the country improves the market analysis. Eventually, making informed investment decisions is possible. With adequate market analysis, it is possible to identify the stronghold of the business in the country. In addition, understanding the threats surrounding the industry in China helps to implement strategies to deal with disasters that might appear in the future. Risk assessment methods are considered effective in identifying challenges that affect the business. For Canada Goose, quantitative and dynamic risk assessment methods are effective in controlling the fashion business in China. AIDA Theory illustrates the areas of focus for a business that intends to enter a new market l. Market analysis guides Canada Goose when making decisions to enter a new market. It is because expansion comes with it set of risks to the company. Competition is identified as the greatest challenge that is impacting expansion of the luxury apparel business in China.
EXECUTIVE SUMMARY 2
DOMESTIC MARKET 5
The Company 5
Products and Services 5
History of Performance 5
Organizational Structure 8
Domestic Market Strategy 8
Export Objectives and Goals 9
TARGET MARKET 9
Economic Factors 10
The attractiveness of the Chinese Market 11
Political Factors 13
Legal Factors 13
Trade Agreements 14
FDI Incentives 15
Market Entry 16
Market Entry Mode 17
Brand Equity of Canada Goose Holdings Inc 19
Risk Assessment 20
Corporate Social Responsibility 21
Export-Ability Assessment 21
When it comes to anything to do with winter clothing, Canadian Goose Holdings Inc. is the most preferred brand in the country. The luxury clothes brand maker was founded in 1957 by Sam Tick (Canada Goose, 2021). Initially, the company was known as Metro Sportswear LTD and specialized in woolen vests, snowmobile suits, and raincoats (Canada Goose, 2021). The company has been a consistent clothing manufacturer and retailer of outer clothing and accessories for men, women, and children. Since the company was founded in a small warehouse in Toronto, the company has grown significantly over the last six decades to become one of the leading global apparel companies.
Products and Services
Canada Goose has a wide range of product offerings ranging from parkas, gloves, jackets, hats, vests, shells, and various other winter clothing. The products are sold through retail, wholesale, and directly to the consumers. The products are tastefully designed to fulfill the customers' needs and can last for a long time. The apparels are designed for the rugged demand of the Arctic, which forms a large part of the country’s northern landmass. One unique thing about Canada Goose is that it remains true to its roots (McKinnon, 2020). Despite the success the company has had over the years, it has not lost its factor of selling functional products.
History of Performance
The company has transformed over the years from a functional brand that only focuses on specific winter clothing into a luxury brand targeting a niche market. In the 1970s, Canada Goose made jackets that were meant for rangers and police. However, the company decided to produce jackets under its brand Snow Goose during the 1980s (Schneider, 2019). However, someone was already using the name, which prompted them to switch to Canada Goose. At the same time, the company was making jackets for other private labels like Eddie Bauer and LL Bean. However, the company began scaling operations focusing on international markets in the early 1990s (Schneider, 2019). Dani Reiss took over the company after his father in 2001, which was a time when most companies were moving their production abroad. Instead, he decided that the company would continue to produce in Canada. At the same time, the management started pushing Canada Goose products internationally. The company’s products flew under the radar until 2010 when people took note of it when Daniel Craig marketed its products (Schneider, 2019). As a result, there was a significant change in the company’s revenue. Canada Goose is now seen as a luxury brand. Even the company’s flagship jacket costs $1,000, which is a high price for many Canadians (Schneider, 2019).
One of the resources that the Canada Goose has is Dani, who did extensive market research
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