The Canadian Feather Goose Is Still Very Popular.

According to the world clothing and shoe net, after the cold winter of 2018, it is controversial.

The Canadian geese are still very angry.

In the third quarter of December 31, 2018, canadian goose sales surged 50.2% to $399 million, a double-digit growth for 11 consecutive quarters, a gross margin of 64.4%, and net profit rose 72% to 105 million 300 thousand Canadian dollars, exceeding analysts' expectations.

Among them, Canada goose direct retail channel revenue rose 79% to 235 million yuan a year, mainly due to the brand new period in Hongkong, Beijing and other new stores and Tmall official flagship store, wholesale channel revenue also rose 22% from $134 million 200 thousand to $164 million, mainly due to the increase in the number of orders of existing partners and delivery time ahead of schedule.

Canadian geese reported in the earnings report that sales in the second half of last year were significantly higher than the same period last year, which has had a positive impact on the third quarter results, favorable exchange rate fluctuations and acquisitions.

Group Baffin business has also made positive contributions to the increase of sales volume.

Canadian goose chief executive Dani Reiss said in a conference call after the earnings report that the brand has successfully entered new markets such as China, and has introduced new products. The demand for direct and wholesale channels is growing, and he is confident of the long-term development of Canada goose in the future.

Dani Reiss revealed that Canada goose plans to set up an office in Greater China in 2019 to promote the development of the market. With the increasing demand of Chinese consumers, the brand will also build new factories in Quebec, Canada. It is expected to create 300 jobs and 650 new workers by 2020.

For the 2019 fiscal year, Dani Reiss expects canadian goose annual sales growth to continue double-digit growth. The adjusted profit margin before interest tax depreciation and amortization is at least 30%, which once again triggered investor concern.

As the brand value of Canadian geese has risen continuously, the reason why people buy this brand is not only its excellent cold preservation function.

The highest price of uniformed down jacket is US $1500, and Canada goose, which is about 10 thousand yuan, has become a luxury. It is a representative of identity and circle.

Canadian geese are known to consumers as "the world's most cold proof coat manufacturers".

Originally, the brand, founded in 1957, mainly sells woollen vest and snowsuit. After being taken over by Sam Tick's son-in-law David Reiss in 1972, it began to focus on making down garments.

Due to the use of pure animal feathers and fur, the warm performance of Canadian geese has been recognized by consumers. Before becoming the winter Star Street filming equipment, the main buyers of the brand were Arctic explorers and film workers. They once became the essential products of Hollywood stars when they filming in winter, and were nicknamed "fashion Land Rover" by consumers.

In 1997, Canada geese began to truly enter the global market.

Dani Reiss became chief executive in 2001, and brought a new turning point for the down jacket brand. It gradually grew into a group with more than 1000 employees, and its sales increased by more than 100 times in 15 years.

Under the leadership of Dani Reiss, Canadian geese quickly gained support from many stars, and the appearance rate of the films increased gradually. They also made a long coats for the actor Rebecca Romijn and named the products in their films for promotion.

Due to the persistence of quality, Canadian geese have been insisting on hand making at home, unable to mass produce, and higher pricing makes their products not available to all consumers.

After being given the luxury attribute, Canada goose has become a very special category in the market. When consumers buy luxury feather products, they are not entirely from the practical demand perspective, which is similar to the fact that people in the city drive Land Rover and buy hermes bags.

The founder of Bloomberg Businessweek has described the canadian goose jacket as hot as the Louis Vuitton handbag 10 years ago.

In 2013, the Canadian geese bought a majority stake in the private equity fund Bain Capital for $250 million, while Dani Reiss still retained a minority stake.

After gaining new financing, Canada goose opened an e-commerce platform in the United States in 2015, and the global expansion plan was gradually implemented. The group set up branches in Toronto, Stockholm, Denver and New York.

At the same time, a new factory in the outskirts of Toronto will be added to increase production.

In March 2017, Canada geese were listed in Canada and the United States respectively. Thanks to strong performance, the stock price has risen from the initial 12.78 US dollars to the current US $52, which has more than 4 times the market value, and the market value has exceeded 5 billion 500 million US dollars.

Canada's geese became the biggest winners in the 100 US IPO market pactions in 2017.

After determined to speed up the expansion of the global market, Canada goose has entered 36 countries and regions, and the business mode has shifted from wholesale to direct outlets and online channels.

For canadian goose explosion, the chief marketing officer, Jackie Poriadjian-Asch, emphasized in an interview that the brand had never deliberately made product implants, usually the producers and stylists found the brand to make an invitation.

In addition to the star effect, marketing expert Rob Fields also pointed out that the selling of canadian goose in recent years is related to the increasing frequency of global extreme weather, and that the down jacket with strong thermal insulation can give consumers a sense of security.

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However, with the diversification of consumer demand, Canadian geese are gradually expanding their products from heavy winter clothing to lighter spring and autumn clothing, which can be sold to countries that are warmer than Canada in winter.

At the same time, canadian goose also extends to knitwear and accessories to provide consumers with a wider range of clothing choices, especially female consumers.

According to a report, Canada goose accounts for about 6% of the high-end coat Market valued at $11 billion and is eroding its main competitor, Moncler, which owns 16% market share. The report says Canada goose has a very favorable but undeveloped global market. It is estimated that Canada's geese earn a compound annual growth rate of about 23% before 2020, far exceeding the average level of global luxury clothing industry.

Just as fashion headline has analyzed before, luxury is not a common commodity, its essence is for social interaction. Most of the time, it satisfies not only the functional needs of consumers, but the psychological needs, so its pricing includes a large number of brand premium. In today's cultural atmosphere, the luxury word has produced the tendency of fetishism, especially in the eyes of young consumers who despise conspicuous consumption.

The two negative effects of "luxury" are far greater than the positive ones. While helping Canadian geese rise rapidly, they also create many "troubles".

According to CBS news in the United States, there were 7 cases of gunmen robbing canadian goose coats in the late January at the end of January.

One surveillance video showed a white Mercedes car parked in the street where the victim walked. A man jumped from the back seat and forced the sleeve of his men's coat. Then another man jumped out of the car, suspected of carrying a gun, robbed the victim and forced the removal of his Canadian goose down jacket.

Several other cases also included trailing victims into apartment buildings and snatching canadian goose down coats.

In addition to strengthening patrols, Chicago police also advised people to change their brand coat.

Some consumers said in an interview with Cbs Broadcasting Inc that they are preparing to buy a cheaper coat, just in case it happens.

He thought it was disappointing to spend a lot of money on Canada goose, but now he can't enjoy it.

And when people interviewed Chicago NBC, they said, "now we really can't wear anything good anymore."

Last November, Woodchurch high school in the north of England suddenly issued a policy requiring students to ban high-end winter coats such as Moncler or Canadian goose.

The headmaster, Rebekah Phillips, explains that this is to eliminate the pressure faced by poorer students.

He believes that these coats, which cost up to 1200 dollars, have led to many inequalities among students and stigmatized students and parents with financial difficulties, which almost reached the monthly rent of many poor students.

Rebekah Phillips also said that this policy was implemented because it was discovered that those affluent students would put pressure on their parents to buy these expensive coats.

In this regard, Woodchurch alumni also expressed support that the alumni believed that students should not be disturbed by their economic background on campus.

It is understood that the regulations will be implemented after the Christmas holidays.

In addition, canadian goose's insisting on using pure animal feathers and fur has also attracted the attention of animal protection organizations.

In November 2017, PETA released a video showing that Canadian goose suppliers had done inhumane treatment of geese before killing a goose on a farm called James Valley Colony Farms.

At the end of 2016, PETA also launched a protest at the door of Canada's goose Soho flagship store.

In order to better promote the change of Canadian geese, PETA bought a few stocks on the day before the canadian goose went public in 2017.

Some analysts believe that PETA members who have been protesting outside the canadian goose flagship store are exerting a subtle influence on the brand image and status in the minds of consumers, which has caused some damage to the brand value.

It seems that Canada geese are standing on a fork road. On the one hand, they attract the millennial consumers because they are cool enough. On the other hand, the moral crisis of the brand makes some consumers choose to abandon the brand.

After studying the millennials, DDT believes that luxury brands originally had positive values such as quality, style, workmanship and design, but some rising brands with high cost performance could also satisfy consumers' pursuit and become the challenge of traditional luxury brands.

Another analyst said that compared with the quality win, but in recent years has been repeatedly pressed by animal organizations in Canada goose, Moncler to the fashion industry closer to the change may be more sensible.

After all, electricity providers and global expansion are only channel changes. Ultimately, consumers should be captured. Canadian geese should be vigilant.

Like Canada geese, Moncler, originally founded in 1952, originally focused on outdoor mountaineering products such as tents and sleeping bags.

In 2003, after being acquired by Remo Ruffuni, a fashion family, it gradually became fashionable and formally entered the luxury industry. At that time, its brand annual sales amounted to tens of millions of euros, and now it has become a luxury group with a market value of nearly 9 billion euros.

The situation of shortage of supply has laid a good foundation for the development of Canada goose in China.

Although the brand was launched at the end of last year through Tmall and opening stores in Hongkong and Beijing, but before the Canadian geese entered the Chinese market, Chinese consumers liked Canadian geese.

Some people in the industry say that as the most potential luxury consumer market in the world, China will be a new driving force for Canadian geese.

Dani Reiss also believes that China will provide many opportunities for the development of Canadian geese.

What the Canadian geese did not expect was that a few days before the opening hours of the flagship store in Beijing, the "HUAWEI incident" broke out, which made investors worry that the "goose" with the name "Canada" might be boycotted by Chinese consumers.

In this regard, Dani Reiss admitted at the earnings conference that the "HUAWEI incident" encountered by the canadian goose in the crucial moment of expanding into the Chinese market is a sad thing. But he can not help it. "We will leave professional problems to professionals. Canada's geese expansion strategy in China is progressing step by step and has made remarkable progress."

Although Canada goose's flagship store opened 13 days later than expected in Beijing, its sales performance appeared to be unaffected on the opening day, and all men's products were sold out at 4 p.m. on the opening day.

To avoid overcrowding, the store also took a batch purchase measure, although the average waiting time was about half an hour and the outdoor temperature was below zero, but the number of queues at the door was as high as 150.

Dani Reiss said that Canada goose in China continues to rise in high heat without the Tmall platform of Alibaba. Before the opening of the Canadian geese in Hongkong and Beijing, the brand entered Tmall's official flagship store in September last year. Although it did not take part in any promotion, Canada goose still ranked the top 10 brands of Tmall double 11 in 2018, and the turnover volume has exceeded 7 digits during the pre-sale period.

Up to now, the number of fans of Tmall goose flagship store in Canada is 450 thousand, and the number of visitors is more than 5 million, which is 8 times the population of Vancouver.

Dani Reiss revealed that sales rose to tens of millions within the two days of the lunar new year, and the most popular product was the classic Parka down jacket. He also stressed that Chinese consumers not only buy canada geese in cold weather.

Some consumers were surprised by the popularity of canadian goose products in China. Many cities in China do not need to wear a warm coat of Canada goose in winter, and point out that the so-called boycott will not last long. "Consumers are most concerned about the product itself, and Canada goose should not be responsible for the country's actions."

But the black horse of Canada goose can not be taken lightly.

CNN wealth channel said that Canadian geese are operating in a highly crowded and fragmented market, especially in the Chinese market. If we do not speed up, a large number of fake commodities will dilute the value of the brand in the minds of consumers and become the real "abuse" street.

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According to statistics, Canada goose lost 18 million 700 thousand US dollars in international expansion plan, or about 130 million yuan.

In the first half of last year, Canadian geese handled 30 thousand fake online advertisements and closed 1700 fake websites.

Dani Reiss has revealed that after a Chinese Canadian goose shop was closed, Chinese officials raided 6 fake production bases and seized more than 4000 counterfeit products.

Another industry believes that with the pursuit of individualization by young consumers, Canada geese will be faced with the risk of being replaced by other more inexpensive emerging brands.

According to Tmall data, China's feather down brand Bosideng Bosideng was the first clothing brand to sell in the last eleven years.

During the holiday of new year's day, the store on Bosideng line also caused consumers queuing up.

While the price of Canadian geese fell 20% on the day of the "HUAWEI incident", Boston stock prices soared all the way, hitting a five year high.

In 2018, Bosideng's stock price doubled 2.2 times and its market value increased by HK $8 billion. It was regarded as the largest black horse in dress retailing, and it rose by 24% with the I.T of Hong Kong stock and 20% by the south of the Yangtze River.

Some analysts said that after obtaining the promising capital market, Bosideng's rare bold pformation measures came into effect last year.

According to the latest three quarter performance data released by Bosideng, in the 9 months ended December 31, 2018, the retail sales of the group's main brand Bosideng increased by more than 30% over the same period last year, and the revenue growth of Xue Zhong Fei, Bing Jie and other brands also increased by more than 20%.

In the first half of fiscal year 2018, Bosideng brand sales rose 24.1% to 1 billion 557 million yuan over the same period.

In addition, Moncler has begun to accelerate the layout of the Chinese market. Last year, it launched a flash store in Tmall Pavilion Luxury, a luxury luxury platform, trying to compete for more young consumers.

In the first 9 months of last year, total Moncler revenue rose 18% to 873 million euros, and sales in Asia and other parts of the world, including China, were the most significant, with 32% to 339 million 100 thousand euros.

In the earlier report, the fashion headline pointed out that, compared with the changes in the economic situation, social and cultural changes are often difficult to record in a quantitative way, so it is easy to be ignored by decision makers.

But in fact, as a social phenomenon, the fate of luxury goods is closely related to the change of social psychology. The new luxury feather and down category represented by Canada goose just greeted the window period, which is attracting close attention from the society.

At the same time, capital market changes, real estate regulation and other factors add uncertainty to the development prospects of Canada goose in China.

Industry analysts say sudden changes in the Chinese market will hurt the luxury brands, and the fluctuation of share prices reflects investors' concerns.

After the expected earnings announcement, Canada goose shares slipped unexpectedly on Thursday, down 13%, and accumulated a drop of 26% in the past 3 months.

Faye Landes, co-founder of Back to the Future Ventures, a retail consultant in New York, commented that the valuation of Canada geese is relative to its scarcity. How to make consumers buy at high frequency to achieve long-term sustainable growth is the biggest challenge this brand will face. "Fashion is temporary, and Canada geese will probably get into trouble like UGG."

However, Dani Reiss does not seem to be worried about the volatility and instability of the market. "We never worry about the product being sold out.

We will produce a product that is truly meaningful, and will only sell the best of the same products. "

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