MADE IN CANADA: The advantage for some manufacturers in staying local,
Some firms find there’s a strategic advantage in staying local
Ten years ago, when it seemed like every Canadian manufacturer was beating a path to Asia to reduce costs, Dani Reiss made a commitment to keep production of Canada Goose down jackets in Toronto.
It’s a move he doesn’t regret, particularly in light of the building collapse in Bangladesh this week that killed almost 300 workers employed by factories making clothes for the North American market, including Loblaw Companies Ltd. popular Joe Fresh brand of fast fashion.
“We felt there was value to staying in Canada and championing it,” Reiss said.
“We thought it could become a strategic advantage.” Canada Goose now ships hundreds of thousands jackets worldwide. Japan is their third biggest market, after Canada and the U.S. Sales are strong in Europe. The coats sell for around $600.
The privately owned firm recently opened a factory in Winnipeg that is twice the size of the original facility. Plans to move and nearly double the size of the Toronto factory by 2014 are in the works. Canada Goose employs about 1,000 people in Canada, including pieceworkers.
Like Lululemon, the company has achieved success by manufacturing a premium product at a premium price, but it has done so by continuing to keep the work in Canada.
“I think there is a movement toward things that are made where they are supposed to be made, especially high-end product. You can’t make a Swiss watch in China,” said Reiss.
Reiss is not alone. Quebec manu- facturer Second Denim made the same decision in 2000 when it set up shop in Montreal, eventually buying the factory in Quebec’s Beauce region that supplied the denim. Their popular yoga jean is sold at 1,000 retailers worldwide, including Nordstroms, Jean Machine and Addition Elle. The jeans sell at retail for roughly $120.
Local manufacturers can respond quickly to trends
Spokesperson Stephanie Quesnel said the company, which employes about 100 people, wanted to stay local to support the local economy. It also gives them the advantage of being able to respond quickly to trends.
Montreal-based shoemaker La Canadienne also resisted the temptation to move operations offshore. “We have many people that work for us and rely on us. This is the driving force of our company,” said president Penny Shuster.
The company makes a good profit while paying employees good wag- es and making a product the owners can be proud of, she said. Like Canada Goose outerwear, La Canadienne shoes and boots are al- so premium products, but at roughly $250-$500 a pair, depending on the style, they cost far less than designer footwear made in China.
In the U.S., Wal-Mart promised in January to source $50-billion worth of goods in the U.S. over the next 10 years, in an effort to stimulate job creation and the economy.
But keeping apparel made in Canada, for now, remains more of a niche than a trend.
Despite the furor on social media in the hours and days following the collapse of the building in Bangladesh, with writers scolding Joe Fresh, the vast majority of consumers do not choose their garments based on where they are made, according to Canadian Apparel Federation executive director Bob Kirke.
The exodus of apparel manufacturing took place after 2000 when import quotas on imported garments were lifted, Kirke said.
The hemorrhaging seems to have stopped, if only because there’s nothing left to move to Asia.
“You can manufacture domestically. The challenge is, especially at a more moderate price points — it’s very difficult to make things competitive,” said Kirke.