National Post (National Edition)
Canada Goose takes real deal to China
BEIJING • Canada Goose Holdings Inc. is pushing ahead with its China expansion, betting its strategy of selling premium coats directly to customers will help overcome a proliferation of knock-offs and the nation’s consumption slowdown.
The Toronto-based company dealt with counterfeits soon after it started selling globally two decades ago, CEO Dani Reiss said in an interview in Beijing on Friday. “We’re used to it,” he said. “It’s very important for us to protect our brand and educate the consumer so they won’t be fooled into buying a fake jacket.”
Reiss faces a battle in China, where many consumers were introduced to the brand’s logo on an imitation parka, sometimes with “China Goose” on the patch, and a map of the middle kingdom in place of Antarctica. The knock-offs can be found retailing for about 400 yuan (US$58) on Alibaba, versus up to US$1,550 North American consumers pay for the real thing.
The brand took off in China partly after celebrities including billionaire Jack Ma were photographed wearing the coats. While the jackets have become a status symbol, the look-alikes online may also be an effective marketing tool, according to Kantar Worldpanel analyst Sam Zhao. “Lots of people may think they bought a version of a really popular jacket — not even realizing that it is an imitation of a luxury brand,” said Zhao. “But then they learn more about the brand and this helps spread the name.”
While developing stores in China may help remedy that, Canada Goose will have to contend with rivals. Its new Beijing flagship store will be on the same block as Italian coatmaker Moncler, which depends on Asia for as much as 40 per cent of its sales.
At a pop-up in Beijing on Friday ahead of the official launch, the firm got a taste of demand for its goods. Eager shoppers arrived clutching photos of their desired models, took selfies and made calls to family members to weigh sizes and designs.
Among the shoppers was Wang Weidong, a finance professional who had unsuccessfully tried to buy it at a department store — one of the few places where customers could buy the jackets in person. He picked out a black-label design that cost 9,100 yuan (US$1,310).
“I’m going to wear it until it falls apart,” he said.