Kanuk brand is getting a makeover
The Kanuk parka is a sure sign of winter in Quebec, appearing on city streets in multitude as the mercury plunges and snow falls.
Much remains the same about the iconic Quebec-made winter wear: certainly the signature gold snowy owl logo on the inside collar – almost a badge of belonging in this province; the location of its factory and shop in the heart of the Plateau; the construction and materials designed for ultimate warmth in a cold, damp climate.
But change is afoot. Nine months after Louis Grenier sold the company he founded in 1974, new president and CEO Richard Laniel is planning to take the brand to the next level with innovation in design, marketing and retail concept.
Wednesday, the company inaugurated a newly designed flagship store on Rachel St. E., about 12,000 square feet of space split down the middle, with the left side a vestige of the linoleum-floored warehouse that was, the right side a sleek showroom-style space.
And at the back of the store, there’s a cold room in which to test
those parkas to -25 degrees, plus a windchill factor generated by a ventilation system.
“In today’s multi-channel world, there is such a thing as showrooming. Customers need a reason to go to a store,” Laniel said. “The only reason you go to a store today is because it’s exciting, it’s memorable. “I call it shoppertainment.” The cold room, he said, is part of that experience, unique and memorable.
The store is an investment: “It’s an investment in the future of Kanuk, not only Kanuk and its coats, but Kanuk and its relationship with Montreal and its local manufacturing.”
Upstairs, the factory floor of 35,000 square feet has not changed — except for the presence of designer Philippe Dubuc, who is putting his cool, modern take on winter style with a capsule collection of about 16 parkas for fall/ winter 2016.
And the number of employees has doubled, to 120.
Private equity firm private equity firm Champlain Financial Corporation purchased the firm in February; Laniel, former senior vicepresident of operations at Best Buy Canada, has an investment in the company. Grenier drops by and acts as a consultant, Laniel said. Terms of the deal were not disclosed and Laniel will not reveal figures on revenue or growth. He will say that the company should sell close to 30,000 coats over the next year.
The annual Kanuk parka emergence follows what has become a rite of fall: the arrival of the Kanuk catalogue in hundreds of thousands of Quebec mailboxes, doubled this season to 400,000, Laniel said.
But that, too, has changed to a more sophisticated lookbook, with high production values.
“The Web now is the biggest catalogue and the biggest store we have,” Laniel said, explaining that the site is also redesigned and now fully transactional across all platforms.
Laniel said web sales are still a small percentage; he hopes to get it up to 10 to 15 per cent of sales.
The coats range in price from about $700 to $1,000, not including optional fur trims, which add another $300.
“We are re-evaluating our competitiveness,” Laniel said.
On the price point, Laniel said, Kanuk has an opportunity to segment more of its offering: “I believe we can appeal to many generations. To do that, there are many criteria — style, quality, price — but in the end it’s all about value.”
Laniel says the changes are not a rebrand.
“I think every company has a maturity curve. And at a certain point you have to stop and reflect on who your customer is and where your customer is going and understand the changes that are also happening in the marketplace,” he said.
When Grenier, an outdoor enthusiast, launched the brand the urban offering was limited, the web was not there and a world of competitors had not yet arrived, Laniel recalled.
“The Québécois, the consumer, just fell in love with this brand — this brand that was well built, with quality materials, that had a certain fashion sense.
“What that did was open up the urban outerwear market very early and then a lot of people showed up in that market,” he said.
The brand will continue to evolve with the urban Kanuk customer, with designers working on the silhouette of the coats so that you can be both warm and fashionable.
“It’s working the overall esthetic, the overall look and feel of the parka,” Laniel said. “Louis started (the trend), and a lot of people followed.”
Indeed, the market has been inundated with parkas in the past decade, notably from Canada Goose, which has soared globally, unlike Kanuk. Owl versus goose?
Even in Kanuk’s little corner of the Plateau, more winter wear specialists are coming in: multibrand Azimut is nearby on Rachel St. E., while success story Orage, with technical ski wear as well as transitional coats, is opening its first store, called Le Chalet, next week near Parc Lafontaine.
“It’s just makes you better,” Laniel said of the competition. “If Kanuk had been alone all these years, I don’t think Kanuk would be where it is today. Innovation is definitely a trademark in this industry.”
Kanuk does not export, and there no specific plans are on the horizon.
“I will go where the consumer takes us,” Laniel said. “But I will not compromise any of the foundations that have made Kanuk what it is today for the simple purpose of growth.”