Canada Goose Inc. is number 125 of the Profit 500 list. Canada Goose is a company that had started in a small warehouse in Toronto, Ontario, Canada in 1957 by a guy named Sam Tick, who was a cutter at other factories. When Sam Tick started the company, it was originally called Metro Sportswear LTD. In 1970, Sam Tick’s son-in-law, David Reiss, had joined the company and had invented a down filling machine for the jacket. Originally, they renamed the company to Snow Goose, because of the white downs, but eventually somewhere in the 70’s it was renamed to Canada Goose. In 1982 Laurie Skreslet became the first Canadian to climb Mount Everest and he was wearing the Big Mountain Jacket create by Canada Goose (Canada Goose, 2013). Then in 1997 an man named Dani Reiss, son of David Reiss, joined the company as a salesman, selling the brand to stores to sell the product. In 2001 he had succeed his father and had become president and Chief Executive of the company. He had brought a new strategy to the way things are done on the advertising and production side of the product. The Strategy was; “by focusing on the made-in-Canada, used-in-Canada story behind the coats, people would clamour for them” (O’Kane J. 2013). The strategy worked and the company fiscal year grew 40% and had sales close to $150 million US Dollars. In addition, Canada Goose jackets had been popping up in movies. The one movie in particular that the jacket appeared in was “The Day After Tomorrow”. Which is a movie about how the world freezes over and these Scientist have to save the world. The scientists that were trudging through the brutal cold were wearing the Canada Goose jackets. Now even though this was a movie people took notice and Canada Goose Inc. Having their coats in a movie about a new ice age sure didn’t hurt the company. Its unclear how many sales came from the movie it self but it there was an increase in sales after the movie was released. (Canada Goose, 2013). In addition, Celebrities such as Toronto’s very own rapper Drake has been spotted wearing these puffy coats through the winter months. (Ligaya A. 2013) Recently Canada Goose Sponsored the Sundance Film Festival, which is where all the A-list Celebrities try to look good in winter wear. Because of this event you will have people like the star of the Harry Potter films, Daniel Radcliffe, speaking highly of the jackets and buying them for him and his mother. Daniel said “Your jackets are impossibly warm and impossibly light!” (Dymond G. 2013). Another way Canada Goose had its brand pushed was when, the popular sports magazine Sports Illustrated had contacted them asking for some stuff, i.e. winter apparel, for a photo shoot. Reiss said “We didn’t know where it would go. We didn’t even know we’d get into the magazine.” At the release of the magazine Reiss had found out that the cover of the Sports Illustrated Magazine had an image of Kate Upton sporting a Canada Goose jacket to which his response was, ”Get the fuck out of here. That’s amazing.” (Dymond G. 2013).
Canada Goose has had many Celebrities, Magazine and other big public players help push the brand and allow for it to be sold at the price it is being sold, where coats range from $500 to over $1000 Canadian. The reason they can keep this price is that the materials are not cheap; Canada Goose Inc. continues to use locally sourced materials. The inside of the coats are made from a blend of Hutterite goose down which is bought from Feather Industries Canada Limited. In addition, the coyote furs found on the hoods still follow to the rules and restrictions of the Fur Council of Canada that looks over fur use in Canada (Studio M. 2011). This private company has been around for over 50 years and its proving that Canadian Craftsmanship and integrity is here to stay. Canada Goose also has a strong hold in the fashion industry, while appearing in many fashion shows, one of the more notable ones they have appeared in would be the Holt Renfrew’s exclusively Canadian fashion show alongside other brands such as Denis Gagnon, Todd Lyn and Wings + Horns. Since Canada Goose Inc. now have a strong hold in the winter fashion industry they do help influence what is in and what is out. Since they have such a strong hold they can really help push their brand, to make sure the new coat designs and patterns are always in fashion, which would increase sales as well. Canada Goose has become a very powerful company in the fashion world they may not be number 1 on the Profit 500 list, but they are of the few that are in fashion and making a very big profit selling winter apparel.
Though the company is rising quickly in popularity and does have quite a few strengths, it is also prone to some weakness and threats. After completing a SWOT analysis, it was found that the strengths of the Canada Goose Inc. are: domestic market, experienced business units, monetary assistance provided, and build quality. Since Canada Goose jackets are made in Canada, Canadians being patriotic will likely buy it over something made in the United States or China. Having been in business for over 50 years, the company has a lot of experience dealing with every situation. Since Canada goose has its head quarters in Toronto, any assistance needed is not far, and they do support their warranty quite well. The last of their strengths would be the build quality of their jacket. After being in business for over 50 years, the company is very aware of what materials to use and how to use them. Using this to their advantage, they can build strong, durable, warm and weather repelling coats and other winter outerwear. Having al these strengths will also bring some weaknesses, those weaknesses are; costs, competitive market, high loan rates are possible, future profitability, tax structure. The costs of getting these great materials and paying for employees in Canada has gotten so expensive, its no wonder that the coats are so expensive. When you add Canada’s tax structure where employers of a company doing this well would be hit by every tax under the sun, it’s a surprise that the company can make profit. Also with todays market and products coming from around the world and a cheaper cost, Canada Goose must keep that same built quality and justify why the jackets are priced at the price they are, whether its $500 or $1000. Though the company has been around for a while it still does have some opportunities, such as; growing economy, new products and services, global markets. Releasing new products and services will help push the brand. Right now Canada Goose is solely focused on winter products. If it would expand its collections to a spring and fall collection as well it could attract a higher cliental. Expanding into a summer collections may be to contradicting with the name and what it stands for, which is to keep you warm. Since Canada Goose jackets are already being sold in 40 countries around the world, more global markets wouldn’t be to hard, and if they do add a spring and fall collection, they can sell to more countries with not as of a cold climate. Lastly there are a few threats the company faces, those threats would be, increasing costs, rising cost of raw materials, government regulations, increase in labor costs, unexpected problems, growing competition and lower profitability. Now in the twenty first century, more and more people have a voice. That voice being they would like to be paid more, thinking if they are paid more they will be able to buy more. Of course this isn’t true, with the government raising minimum wage to $11 in Ontario, everything from transportation to products will increase in price as well. The same thing goes for Canada goose, if their employees want more money they may have to raise the price of the jackets, or if materials will start to get more expensive because either it is becoming scarce or the material supplier has to pay their employees more. To add to that threat would be completion coming in a selling for a lower price while offering a similar build quality. So far no company is offering a good quality coat for around the same price, unless you look a faux fur or a coat that is not as warm. Although a brand by the name of “Moose Knuckles” has popped recently but after looking at the price of their coats, $800-$1500, Canada Goose has some breathing room. (Canada Goose SWOT Analysis 2013)
Canada Goose is a company that has been around for over 50 years and has gone through 3 generations of CEO’s. It has become a huge fashion icon and has become famous for how warm the coats are, while staying light and durable. Canada Goose is a company with a rich history that shows why the company is so successful. As long as Canada Goose keeps pushing their brand and expands their collections, the company will keep growing and will keep rising on the fortune 500 list.
Reference Page
Canada Goose (2013) Main Website: http://www.canada-goose.com/story
O’Kane J. (2013, April 12) Article Title: Canada Goose CEO's 'aha' moment: 'I realized the brand was real' Retrieved from: http://www.theglobeandmail.com/
Ligaya A. (2013, December 10) Article Title: Made-in-Canada still key for Canada Goose after sale to U.S. private-equity firm Bain, CEO says, Retrieved from: http://business.financialpost.co
Dymond G. (2013, March 6) Article Title: Guiding the Flock , Retrieved from: http://www.thegridto.com
Studio M. (2011, October 10) Article Title: Canada Goose: History of a Canadian Fashion Brand, Retrieved from: http://www.mason-studio.com
Canada Goose SWOT Analysis 2013 - http://swot.advisorgate.com
