Bosi­deng warms up, Canada Goose suf­fers chill

China Daily (Canada) - - YOUTH - By OUYANG SHIJIA and WANG ZHUOQIONG

While the ice-cold win­ter weather has brought sub­zero tem­per­a­tures to parts of the world, two win­ter-coat heavy­weights are ex­pe­ri­enc­ing markedly dif­fer­ent busi­ness cli­mates.

Shares of Canada Goose Hold­ings Inc, the maker of pre­mium parkas, slumped al­most 20 per­cent dur­ing the past week on the Nas­daq. Dur­ing the same pe­riod, Hong Kong-listed Chi­nese down-coat maker Bosi­deng In­ter­na­tional Hold­ings Ltd, surged 14 per­cent to a five-year high.

An­a­lysts noted that the fluc­tu­a­tion of Canada Goose’s stock prices has been im­pacted by the re­cent so­cial crit­i­cism of the killing of wild an­i­mals. Some ex­perts said the ap­parel com­pany’s stocks have been im­pacted by the ar­rest of Meng Wanzhou, chief fi­nan­cial of­fi­cer of Huawei Tech­nolo­gies Co.

See­ing China’s key role in the global lux­ury mar­ket, Canada Goose an­nounced its ex­pan­sion strat­egy in China in May this year. Own­ing an of­fice in Shang­hai, it now has an on­line pres­ence via Chi­nese e-com­merce plat­form Tmall and op­er­ates an off­line shop in Hong Kong. A new flag­ship store will be launched in Bei­jing this month.

“This was the right time for us to open a head­quar­ters in China,” Dani Reiss, chief ex­ec­u­tive of­fi­cer Canada Goose, said re­cently.

“We’ve been in­ter­act­ing with Chi­nese con­sumers even from the on­line en­vi­ron­ment and our global stores. We know we have a high brand aware­ness here. And the new move will help of­fer that ex­pe­ri­ence in this coun­try,” Reiss added.

Statis­tics from Alibaba show around 500,000 peo­ple vis­ited Canada Goose’s on­line store on Alibaba’s Tmall plat­form dur­ing the an­nual Sin­gles’ Day shop­ping fes­ti­val on Nov 11. Dur­ing the an­nual shop­ping frenzy, con­sumers spent more than 10 mil­lion yuan ($1.5 mil­lion) in around an hour on Canada Goose’s Tmall shop. of

For the sec­ond quar­ter ended Sept 30, Canada Goose re­ported a to­tal rev­enue growth of 33.7 per­cent year-on-year to $174 mil­lion.

In re­cent years, Bosi­deng ac­cel­er­ated its up­grad­ing strat­egy and has al­ready reaped the re­wards. Dur­ing the first half of this year, the com­pany’s rev­enue in­creased 16.4 per­cent to 3.44 bil­lion yuan. It re­ported that rev­enue of its branded down ap­parel busi­ness seg­ment jumped by 19.5 per­cent year-on-year to 1.77 bil­lion yuan.

Xu Haoyu con­trib­uted to this story.

Con­tact the writ­ers at ouyang­shi­[email protected]­nadaily.com.cn

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