The Rise of Canada Goose: Big Challenges Lay Ahead for Fast Growing Luxury Apparel Brand

Despite being in business for over six decades, the rise of Canada Goose came seemingly out of nowhere. Rapid growth over the past few years has seen the company go from relatively unknown beyond niche groups to being worn by high-profile celebrities and the wealthy. Having achieved notoriety as a desirable brand at the heart of conspicuous consumption, the continued growth of Canada Goose relies upon the company overcoming a series of challenges. Although some matters are beyond control, signs are the Toronto-based firm is making the correct decisions to continue double-digit growth for the immediate future.

Key Questions Answered

– How did the luxury brand strike mainstream success?

– What are the threats to future growth?

– Will physical stores keep the company growing?

– Can new product lines repeat earlier successes?

Scope

By kitting out entire film crews and casts working in cold climes, Canada Goose successfully launched the brand into the consciousness of the wealthy and famous.

Branching out into physical stores marks a key time in the transition the company hopes to complete, from market intruder to established presence.

A problem for a luxury brand that suddenly strikes widespread popularity is the danger of consumers over spending to gain access to the product range.

Reasons to buy

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Table of Contents

Table of Contents

Overview 2

Catalyst 2

Summary 2

Hollywood cachett provided Canada Goose extensive celebrity exposure 6

Movie stars granted Canada Goose exclusivity, fertilizing desirability 6

Relationship with film festivals attaches Canada Goose brand to rich and famous 7

Conventional advertising has proven to be highly impactful in push for widely viewed coverage 8

Product line development key to future sales growth 9

Expansion in product lines needs to be successful for long-term future 9

History shows expansion of luxury brands is a risky business undertaking 10

Greater number of products makes keeping focus on main goals harder 11

Opening Canada Goose stores represents potentially lucrative future 12

Store location selection critical for success of expansion plans 12

Inserting luxurious traits into physical stores is the correct expansion strategy 13

History suggests Canada Goose must be cautious about brand expansion 15

Consumer debt demands expansion must not be too rapid or brand will dilute 15

German car manufacturing industry revealed how to spread luxury brands without harming desirability 15

Continued use of fur presents significant long-term problems 17

Growth was dependent upon views towards fur slackening it may not remain so 17

Using fur creates business problems with potential to damage public image 18

Protestors have become commonplace at store openings more are expected 19

Counterfeits remain a threat against brand security but are diminishing 20

Global counterfeit industry is substantial, exerting pressure on luxury brands 20

Efforts directed towards educating public in fake spotting will help consumer confidence on vital issue 21

Conclusions 22

Success of Canada Goose down to clever strategy but challenges remain to secure expansion 22

Appendix 23

Sources 23

Further Reading 23

Ask the analyst 24

About MarketLine 24

Disclaimer 24

List of Figures

List of Figures

Figure 1: Daniel Radcliffe on the set of ”˜Kill Your Darlings’ 7

Figure 2: Canada Goose at Sundance Film Festival, 2017 8

Figure 3: Canada Goose revenues 2014 to 2017 (CADm) 9

Figure 4: Men’s OVO Chilliwack Bomber 2016 10

Figure 5: Canada Goose revenue breakdown (CADm) 12

Figure 6: Canada Goose London store 13

Figure 7: BMW 3 Series 16

Figure 8: Anti-fur campaign poster 17

Figure 9: Canada Goose Chateau Parka 18

Figure 10: Canada Goose fake (left) and genuine (right) contrast 20

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